Tuesday, May 5, 2020

International Strategic Management for Harley -myassignmenthelp

Question: Discuss about theInternational Strategic Management for Harley Davidson Inc. Answer: Harley-Davidson Company uses Harley Owners Group (H.O.G.), Harley-Davidson Financial Services (HDFS), and Harley-Davidson Motor Company (HDMC) SBUs to implement differentiation strategy (Harley-Davidson par. 2). This paper analyses how Harley-Davidson, Inc. uses its strategy to attract more customers that are loyal across 90 countries. Harley-Davidson, Inc. applies differentiation strategy to design and manufacture unique products/services and sell them to price sensitive customers. For example, Harley-Division started to target customers while focusing on their needs. The company develop unique products to offer unique features against rival offerings from competing companies markets (Farhana and Bimenyimana 25). Herley designs products that need less maintenance. According to the case, the company spends only 15% on marketing budget towards traditional media. For instance, it organises for events and activities that engage customers at every level. Harleys Chief marketing officer (CMO) has succeeded in organizing for events in Rome Italy. The company uses crowd-sourcing firm to co-create and test all marketing ideas (Kaleka and Morgan 28). Such a strategy has made it possible to link with the number one seller for the period 208-2013 (Harley-Davidson par. 2). Harley uses differentiation strategy to achieve greater compatibility. HOD designs, manufactures, and sells motorcycles with classic styling, superior quality, distinctive sound, and innovative design (Tripes, Stanislav, Komarkova, Pirozek and Dvorak 332). Besides, the PDC division has a capability to customize unique features any motorcycle using accessories and special parts to increase value according to customer preferences. The company uses this strategy to target customers (Farhana and Bimenyimana 25) located in global markets such as Latin America, Asian-Pacific, and EMEA. Harley applies ensures that all its products have more features to meet desires of its customers. A majority of customers like its products because they have several features. They come back to make other purchases (Tripes, et al 334). The case shows that its customers already have strong attachment to a company brand. This presents a valuable asset for HOG for the entire company as well as Harvey experience to every customer (Harley-Davidson, 4). This feature makes it possible for the company to create a sustainable competitive advantage against other competitors. Currently, the company has manufactures six different platforms of motorcycles; street, V-Rod, Sportster, Softail, Dyna, and Touring. It is because of this that has made the company to remain a leader in gaining a higher market share in USA. Consequently, the market sales have increased by 7% from Europe, the Middle east, and Africa (EMEA) (Harley-Davidson 5). Harley Company ensures that its differentiation strategy makes it possible to control its procedures during manufacturing stage. For instance, within its $1 billion supply chain, the company has more than 300 suppliers. The company ensures that all its suppliers have an access to its facilities and internal management system it calls Ride. Unlike other competitors, the company ensures that all its suppliers engage with Harley designers along all stages of design and manufacturing. The company has also succeeded in creating a detailed contract that explains quality management. The company applies this strategy to ensure that suppliers provide quality materials that meet customer value (Harley-Davidson 5). Consequently, the company has succeeded in receiving return customers. Management offers improved service than what competitors provide. According to the case, more than 1 million- plus HOG members has strong connection with the company in order to get close to its customers. Furthermore, the process ensures that the quality assurance department in liaison with the RD collect customer feedback on areas of improvements. For example, the company offers a means of constant communication with customers. The success of this strategy has made it possible for the company to continue receiving repeat customers that already have strong emotional connections with its products. Shao (3) reiterates that any company that does this is sure of becoming a valuable asset and as part of experience not only to a company but also to its customers. Currently, there is no competitive that can replicate similar strategy of offering improved services to customers. Harley offers greater convenience across its markets where it sells high quality branded products. Currently, Harley-Davidson, Inc. operates as a parent company that manages two SBUs; the Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). On the one hand, the HDMC takes responsibility of designing customized, cruiser, and touring motorcycles. Furthermore, it also provides general merchandise, apparel, ridding gears, and accessories. While on the other hand, the latter SBU takes the responsibilities of providing wholesale as well as retail financing and insurance services to all its dealers and riders located in Canada, United States and other specific global markets. Harley has ensured that it opens up financial services in several areas. The company does this to achieve a higher level of convenience in its financial services (Sun, Li-Yun and Wen Pan 2). Some of areas include Texas, Chicago, and Plano to serve customers that need wholesale financial services. While those that need retail services can access such services as Nevada and Carson City. Besides, some of the regional offices are located at Miami, Singapore, EMEA, and UK. No other motorcycle manufacturing company has succeeded in imitating such a differentiation strategy. Works Cited Farhana, Mosarrat and Eric Bimenyimana. "Design Driven Innovation as a Differentiation Strategy - in the Context of Automotive Industry." Journal of Technology Management Innovation, vol. 10, no. 2, Apr. 2015, pp. 24-38 Harley-Davidson, Inc., Compare bikes, 2015. [Online] from https://www.harley-davidson.com/us/en/compare-bikes.html, Kaleka, Anna and Neil A. Morgan. "Which Competitive Advantage(S)? Competitive Advantage-Market Performance Relationships in International Markets." Journal of International Marketing, vol. 25, no. 4, Oct. 2017, pp. 25-49 Sar, Ashok K. "Competitive Advantage and Performance: An Analysis of Indian FMCG Industry." Academy of Accounting Financial Studies Journal, vol. 22, no. 1, Mar. 2018, pp. 1-8. Shao, Xiao-Feng. "Product Differentiation Design under Sequential Consumer Choice Process." International Journal of Production Research, vol. 53, no. 8, 15 Apr. 2015, pp. 2342-2364 Sun, Li-Yun and Wen Pan. "Differentiation Strategy, High-Performance Human Resource Practices, and Firm Performance: Moderation by Employee Commitment." International Journal of Human Resource Management, vol. 22, no. 15, 15 Tripes, Stanislav, Lenka Komarkova, Peter Pirozek and Jiri Dvorak. "Determinants of a Successful Differentiation Strategy." Proceedings of the European Conference on Management, Leadership Governance, Jan. 2014, pp. 330-336

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.