According to Doole, and Lowe (2005) the business is almost a century old and faced various shifts in its strategy during the years of its operations. The organization is successful in competing with the Japanese motorcycle manufacturers and managed to escape a bankruptcy with the help of AMF in 1970s. However the business was sold to its management after 10 years and the major restricting took place. The business was governed according to the chaining needs of the market and economic conditions as well as the environmental conditions of the market were considered relevant for implementing change in the business processes of the organization.
¶ … Strategic Choices at HD Motorcycle Corporation
Harley Davidson's strategy to become a successful organization
The corporate strategy is developed in accordance with the business strategic vision and mission. The organizations also establish business strategy to respond internal and external elements of their operating environment. Harley Davidson is an organization that has a long history of operations and also faced challenges from external and internal environments. The business has also adopted changes in its corporate and business level strategies in response to the environmental factors. The strategies enabling the business a successful business entity are reviewed in the following sections.
Harley Davidson's strategy to become a successful organization:
The business has gained its position in the market over the years. The success story of Harley Davison (HD) is based on the competitive strategy and adopted changes throughout the business. The organization grew over the years and it has followed different strategies at various times, according to the requirements. The combination of strategies followed by the business for human resources, restructuring, waste reduction, cost efficiency, and manufacturing process redesign has laid the foundation of a successful company. The holistic turnaround strategy of HD included the reduction in overproduction, waiting time, transportation, processing, unnecessary motions, and inventory (Gee, 2008). The major reductions were made through implementation of lean manufacturing and management techniques.
The business also reduced the lead time to market its products along with the cost of production through implementing lean manufacturing and restructuring of its corporate and bureaucratic organizational structure. The business also invested in its human resources development. The human resources expertise is central for organization's efficacy. The HD strategy for marketing and pricing is based on differentiation and brand recognition. The clients of HD are not only loyal with the brand but they also prefer the brand image created through differentiating with other motorbike manufacturers (Draft, 2009). The successful blend of the strategies adopted by the business according to changing requirements in the economic and technological market has enabled the business to maintain its success and attain sustainable growth. The success of an organization is also based on clarity in the vision of its leadership.
Change in Harley Davidson's strategy:
According to Doole, and Lowe (2005) the business is almost a century old and faced various shifts in its strategy during the years of its operations. The organization is successful in competing with the Japanese motorcycle manufacturers and managed to escape a bankruptcy with the help of AMF in 1970s. However the business was sold to its management after 10 years and the major restricting took place. The business was governed according to the chaining needs of the market and economic conditions as well as the environmental conditions of the market were considered relevant for implementing change in the business processes of the organization.
The changes in the corporate, business, and operational strategy of the business has facilitated its growth over the years. The innovative and technologically viable design and performance features are constantly added to the new models of HD. The business also places a high value in sustainable operations and takes active part in the corporate social responsibility initiatives to sustain its operations. The business has played its role in preservation of sites and motorcycling tracks over the past years.
Harley Davidson's strategy fit with the environment of the motorcycle industry:
The environment of motorcycle industry is different based on the areas of its operations, target market, and brand image of the organization. Different organizations target various areas in the target market depending on the customer profiling, fuel efficacy, product price, type of motorcycle, and geographical areas. The target market of HD is not limited to the price sensitive segment. The business has appealed to the brand conscious performance oriented motorbike customers. The differentiated product strategy followed by the business has helped it gain its market share. The product is associated with its performance oriented brand image providing its customers a reliable and durable motorbike (Draft, 2009).
The strategy has allowed the business to develop a market for finically sound customers that rely on the brand's product. The strategy for the business is almost similar for other companies that have developed their brand image in different segments of the target market e.g. Suzuki and Honda are considered modern, economical, and fuel efficient, Ducati is renowned for racing, and Harley Davidson is known for its heavy country style motorbikes. The strategy for differentiating and gaining expertise in a unique market segment has helped the business create a market niche for its American style motorbikes. The environment of motor bike industry is mostly influenced by the economy's overall position and to some extant innovations in design and performance capabilities of the motorbikes. Therefore the business should be considerate about cost reduction and sustainability in its market position through differentiation in its motorbikes design and performance features.
Harley Davidson's strategy for internal resources and competencies:
The business strategy of HD to develop a small niche market and penetrating in the segment to develop it as a sizeable market has helped the business achieve its results. The business has also effectively restructured and regained its market position through innovative and change management initiatives. The business is also relying on its internal resources to develop motorbikes that can be used by its gaining customers. The key assumption made by the company is based on its market research that its customer will continue to drive the motorbikes produced by the business. The business has established brand recognition along with the reliable internal resources.
The business implemented a lean manufacturing and partnering approach in order to manufacture its motorbikes. The engineering expertise was used to develop new designs and fuel efficacy features in the motorbikes. The business also developed a lean manufacturing approach to recued waste and eliminates delays in manufacturing processes. The business was restructured and an aggressive strategy to market the motorcycle models in international markets was also achieved by the management.
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