Resources are the productive assets owned by the firm while the Capabilities are what the firm can do. The Resources can be classified in tangible, intangible and human resources.
Applied to the case, we have identified several resources of the company:
-The image of the company that the customers have.
-The loyalty of its consumers.
-The reputation and the relationship between the brand and the unique American culture.
-The company represented a tradition of US engineering and manufacturing.
-Strong relationship between the company and its consumer based on the Harley experience that they provide.
-Traditional engineering and design.
As we have already mentioned, the main resources are classified as intangible resources which makes it more valuable and in this case consist of the reputation of the company.
In order to explain the capabilities we are going to use the value chain analysis:
1. Inbound logistics: the raw materials required for the company
2. Operations: the engineering and infrastructure of the company was based on traditional engineering and the technology was old-style. The management of the Milwaukee plant based on the study of the JIT system, with the purpose of reducing inventories and costs and to improve the quality control. They foster close relationships with key suppliers.
3. Outbound logistics: how you put your products into customer´s hands, the contact with the client. In this case Harley´s is a well know brand, which is able to deliver its products all over the world.
4. Marketing and Sales: they have known how to transmit this feeling of loyalty to consumers. They have also been promoting its activities through accessories and “general merchandise”.
3. What strategy recommendations would you offer Harley-Davidson´s management team on the basis of your answer to question 2.