Harley Davidson Inc

Harley Davidson, Inc. (Case #7)

Case deals with a lot of Chapter 5 and Chapter 7 (Value Chain).

1. Identify Harley-Davidson’s strategy and explain its rationale ()

a. Lay some financial groundwork, how have they performed financially from 2003-2011?

b. When identifying Harley’s strategy, go to figure 1.6 on page 22 of text (also on slide from chapter 1). Use model to tell where and how Harley is competing. Answer the model questions.

c. Which section of the motorcycle market do they compete and what else do they sell besides motorcycles.

d. Do you think Harley is selling motorcycles or something more (maybe a brand or lifestyle)?

2. Compare Harley-Davidson’s resources and capabilities with those of Honda. What does your analysis imply for Harley’s potential to establish cost and differentiation advantage over Honda? ()

a. With respect (capabilities) for technology, design, purchasing, manufacturing, distribution, brand, customer service, customer loyalty, and financial resources. Who wins in each section?

b. How do you asses each resource or capability you just listed in terms of: its strategic importance, and Harley’s strength relative to other leading motorcycle manufacturers. Go to figure 5.8 on page 131. Put each resource/capability in a specific box and why did we put it there.

c. What resources/capabilities has Harley upgraded in the last three decades?

d. Apply and do an application of the Value Chain in linking the supply of differentiation with the demand for differentiation. Look at page 198-201. Page 200 shows a nice example for a canning company. Do a value chain for the customer and the company.

3. What threats to continued