Harley Davidson Case Questions 2

Harley Davidson Case Questions

Please read the case and answer the following questions. Try to answer the questions as concisely as possible. This case is from 2006 and therefore I would do some research to determine where Harley is today and how it has weathered the economic doom and gloom of the recession. I am interested in your opinions and evaluation as dictated by the following questions. Remember to keep the answers as concise as possible and to the point. I don’t need a thorough retelling of their corporate history.

1.      Historically, how did Harley Davidson (HD) manage to dominate the U.S. market? What were its sources of competitive advantage? HD got into trouble in the 1970’s, what changed both internally and externally?

HD motorcycle is part of American iconography and is associated with U.S. flag and the bald eagle.  This association would be unprecedented brand loyalty. This competitive advantage enabled them to sell the motorcycle at higher price.

After Japanese manufacturers accounted for more than 85% of U.S. motorcycle, HD agreed a friendly takeover by AMF and gain capital for changing from niche player to beat Japanese companies.

2.      What were the major ingredients of the HD transformation process? What elements seemed to you to be the most important? What is your own personal evaluation of the transformation process?

It is admirable that their immediate change of system after HD senior manager visited Honda factory and saw their minimum paperwork and things flowed smoothly. HD actually didn’t have such as just-in-time system but HD found their lacks quickly and tried to change their system and the process is very straightforward.

3.      What is Harley’s current source of competitive advantage? If you are Honda, Where do you see HD being vulnerable?