Harley-Davidson Inc Report
Harley-Davidson Inc is among the most renowned corporations within the motorcycle industry. The company produces heavy weight motor vehicles necessary to help in the development and operations of other industries. The key to success and one indisputable element towards the success of an organization lies in the kind of industry in which the organization operates. Right skills, right people, and the right strategies can easily be wasted in an industry that does not support that kind of operations. Additionally, the kind of industry in which an organization operates determines the scope of operation that all organizations within that industry will take (Ahlstrom & Bruton, 2010). There are industries that do not allow a wide approach kind of operation and there are those that do not allow narrow operational tactics. Therefore, for an organization to succeed in either wide or narrow focus of operations they must ensure that they are in the right industry, an industry that will not limit the running of the business. This among other issues is the reason as to why the kind of industry in which an entrepreneur chooses to engage in can be his or her source of success or downfall. The motorcycle industry is a stable industry thus making Harley-Davidson Inc a success.
The company has been in operation for a long period, which gives it the advantage of consumer recognition. Customer awareness is something that businesses strive for the entire lifespan of their operation. Young businesses spent most of their resources trying to achieve customer recognition. Its importance lies within the fact that at the end of the day, it is the loyal customers that save an organization during economic crises. Harley-Davidson possesses this advantage; therefore, any investment in this organization is safe and can hardly lose its value. The company spends few resources in marketing and advertisements since word of mouth from the loyal customer serves that purpose most perfectly. Most of the resources that would have otherwise been used to create company awareness to the public are used in innovation and development of new and existing products. The strategy helps in improving organizations profitability level as well as create desirable products that serve customers interest better than the competitors, hence a competitive advantage (Chapman, 2008). Being able to stay on top of the market is vital for the growth and development of any business but the ability to exploit the internal resources for the good of the company goes a long way.
In addition to have a well recognition level within the market, Harley-Davidson Inc has a strong brand image. The company is known for the production of high quality, efficient and effective heavy weight vehicles. The organization has constantly been ranked among the high-level motorcade production companies in America and Europe among other well-established economies. Harley-Davidson holds majority of the shares within the motor vehicle industry in America. That gives the company a competitive edge against its competitors and a position to become the market leader. The fact that the company is recognized for high quality allows it to add a premium profit to its products and services thus ensuring that all the costs are well taken care of and the resources used in product manufacturing are well managed (Chapman, 2008). The company uses differentiation leadership to stay ahead of its competitors through both the production of high-level products as well as offering credible wholesale and retail financing and insurance services to its clients.
The company enjoys broad products and services production in a wide range of markets. Harley-Davidson Inc houses two business segments including motor vehicle and financial service segments. The two areas of operation diversify the range in which the company operates thus services a wide range of customer needs at the same spot. In today’s world, time has become a very crucial commodity and people are looking for ways to cut down on unnecessary time use. An individual would more comfortable to purchase a product in a one-stop shop that offers variety of products at the same store rather than move from one place to another. Harley-Davidson is a one-stop shop within the motor vehicle industry offering both the products and the services that come along with the use of vehicles like insurance. As mentioned earlier, the market size of the company is a wide one involving America, Europe, and Asia. Through its diversification in products, the company enjoys a great market share making it a success and a leader in motor vehicle production within those areas.
Over the last decade, the company has recorded great development in terms of its revenue acquisition and products development. The company has been able to cut down its costs through various business tactics hence raising its profitability level. One of the strengths of the management team of this company is the fact that they are efficient in all they do. The company selects competent personnel, people with the ability to make informed choices when it comes to business management to lead the team in innovation and product development (Ahlstrom & Bruton, 2010). With the emerging markets especially in Asia, the company stands a chance of tripling its profits as well as extending its operations to other nations. The team is made up of a group of well-equipped researchers who are able to push the organization to the next level through market research and development. Additionally, the company intends to launch more products that are new, something that will open more markets for the organization and improve its financial status.
Every business however faces some challenges both internal and external and the ability to control those variables determines the success or failure of an organization. The threats facing Harley-Davidson are rather minimal considering the fact that the organization stands at a unique position within the industry. However, this does not imply that the organization does not face any challenges. The management team has put in place strategies to ensure that any challenge or threat is neutralized before it affects the organization negatively in any aspect. New emission standards for two wheelers as well as over-dependence on US market are two main issues that the company needs to deal with to ensure total deployment of its resources (Ahlstrom & Bruton, 2010). Through the launch of new products and the emergence of new markets, the company will diversify its markets and reduce the dependence on US markets. The new standards for two wheelers affects all companies within the motor vehicle industry but the management team of Harley-Davidson Inc is in the process of putting up strategies that will enable the company use its resources well even during the operation change period. In conclusion, an investment in Harley-Davidson Inc is a wise investment that is guaranteed of a good level of returns.
Chapman, G. (2008). The 5 pillars of guaranteed business success: why most businesses will stay small and what you can do about yours. Camberwell, Vic: Empower Business Solutions.
Ahlstrom, D. & Bruton, G. (2010). International management: strategy and culture in the emerging world. Australia Mason, OH: Southwest