Business Unit Analysis And Feasibility Study Directio 048037

Business Unit Analysisdirections Create A Feasibility Study For Harle

Create a Feasibility Study for Harley-Davidson using the following outline: Part I: Differentiation Strategies The analysis of current strategy and competitor analysis you conducted last module impressed the senior vice president. She now needs you to delve into the brands and analyze them by conducting a business unit analysis and presenting your findings in a three-part PowerPoint presentation. Research the Harley-Davidson (H-D) Web site for each brand, and review the annual report for relevant details of the size, scope, target market, services and amenities, and other salient points of differentiation. Include these details in Part I of your PowerPoint presentation.

From the research and analysis of the business units, identify: A description of each brand that provides a clear picture of the brand and its place in the overall portfolio of Harley-Davidson. The target market of each brand. How the brands are alike and how they differ. A preliminary analysis of any gaps that exist in the portfolio that might lead to opportunities to add to the brands. Your analysis of possible merger/acquisition/joint venture possibilities and what would be achieved or accomplished through the merger/acquisition/joint venture.

Part II: SWOT Analysis Perform a SWOT analysis for Harley-Davidson and include this information in Part II of your PowerPoint presentation. Based on the internal analyses of the SWOT analysis, assess the functional areas, resources, capabilities, and strengths H-D possesses. Please be sure to cover the following functional areas in your assessment: Marketing: New product development, integrated marketing planning, marketing communications, and building customer loyalty. Operations: Quality, service, and consistent execution. Human Resources: Hiring, training, developing talent, and performance planning.

Avoided lawsuits and bad PR due to its hiring practices. Is ethical in its HR practices. Executive Leadership: Industry knowledge and experience, vision about where the industry is heading, and strategy execution. Supply Chain Optimization: Strategic sourcing of input, vendor management, integrated IS, and joint forecasting with suppliers. Corporate Responsibility and Ethics: Concern for corporate citizenship and the environment. Present any potential ethical concerns as well. Safety and Quality: How the motorcycle industry is dealing with safety and quality issues. Part III: Growth and Profitability Strategies In addition, the executive board is interested in your ideas about bold strategies for the future. The strategies you recommend will have to contribute to growth and profitability, as outlined in the Annual Report. You will want to pay special attention to exploring vertical integration, strategic alliances, and the internal growth of new brands entering new geographic markets, and/or additional acquisitions.

Consider the following: Is Harley-Davidson, Inc., (H-D) competing in the right businesses, given the opportunities and threats present in the external environment? If not, how can H-D realign its diversification strategy to achieve a competitive advantage? This may include additional diversification to take advantage of opportunities such as further vertical integration. Is the corporation managing its portfolio in a way that creates synergy among its businesses? If so, what additional businesses should it consider adding to its portfolio?

After you have reviewed the growth and profitability strategies, create a list of possible strategies to present a full range of ideas. Part III of your presentation should include your complete list—all potential ideas—for the senior vice president. This is your chance to be creative. Next, rank your ideas from best to worst. To do this, keep in mind several things such as fit with current strategy, resources and capabilities, and difficulty of execution.

For each of your top five ideas, add the following: Briefly describe the strategy. Why you picked it as one of the top five. Think about such things as: Does the strategy build on current competencies and foster horizontal relationships among brands? In other words, what can be leveraged or shared? What are the pros and cons of this strategy?

Your PowerPoint Feasibility Study presentation will also include slides pertaining to the following assessments: Part I: Identification of size, scope, target market, services, amenities, and points of differentiation. Part II: SWOT analysis that includes marketing, operations, human resources, executive leadership, supply chain optimization, corporate responsibility, ethics, safety, and quality. Part III: Growth and profitability strategies, including your top five strategic ideas and support. Submit the PowerPoint Feasibility Study presentation to the senior vice president so that she can review the alternatives and provide you with feedback about your ideas. Submit your presentation to the Submissions Area by the due date assigned.

Paper For Above instruction

The comprehensive analysis of Harley-Davidson’s (H-D) strategic business units, along with their differentiation strategies, SWOT analysis, and growth prospects, offers a nuanced understanding of how this iconic brand can sustain and enhance its market position. This essay systematically explores the current brand portfolio, examines internal strengths and weaknesses, identifies strategic opportunities, and proposes bold future growth initiatives that align with industry trends and Harley-Davidson’s core competencies.

Part I: Business Unit and Brand Analysis

Harley-Davidson’s brand portfolio includes several key business units, each targeting distinct customer segments and offering unique value propositions. The flagship Harley-Davidson Motor Company brand primarily targets middle-aged to older male enthusiasts seeking iconic, heavyweight motorcycles associated with freedom and rebellion. Its target market is predominantly North American and European riders, with an emphasis on premium quality, craftsmanship, and brand heritage (Harley-Davidson, 2023). The company's other brands, such as H-D Street and LiveWire, cater to younger, urban consumers and environmentally conscious consumers, respectively, representing diversification within the portfolio (Harley-Davidson, 2023).

Each brand differs in terms of product offerings, target demographic, pricing strategies, and brand messaging. Harley-Davidson’s core brand emphasizes legacy and lifestyle, while newer brands like LiveWire focus on innovation and sustainability. Similarities among these brands include the emphasis on quality, community, and lifestyle branding. The differences mainly revolve around vehicle type, technology, and target customer preferences. Notably, opportunities exist to fill gaps such as expanding into electric adventure bikes or premium touring models targeting new geographic markets (Harley-Davidson, 2023).

Potential mergers or joint ventures could strengthen Harley-Davidson’s portfolio, particularly by partnering with electric vehicle tech firms or adventure motorcycle manufacturers. For instance, collaborating with a prominent electric bike company could accelerate innovation and entry into emerging markets. Such alliances could lead to shared technology, expanded distribution, and enhanced brand credibility, ultimately broadening Harley-Davidson’s appeal and market share.

Part II: SWOT Analysis

Internal Strengths and Capabilities

Harley-Davidson’s strengths include its strong brand equity, loyal customer base, and extensive dealer network. Its marketing capabilities excel in brand storytelling, community engagement, and product development focused on riding experiences (Harley-Davidson, 2023). Operationally, the company prioritizes quality and building a loyal customer experience, with a reputation for durable, high-performance motorcycles. The company’s human resources practices emphasize talent development, ethical hiring, and creating an inclusive environment, reducing legal risks and fostering innovation (Harley-Davidson, 2023). Leadership boasts vast industry experience and a clear strategic vision for electrification and global expansion.

Functional Area Assessments

  • Marketing: Harley-Davidson excels in integrated marketing planning, leveraging brand heritage and experiential marketing to build loyalty. New product development focuses on expanding electric offerings and enhancing classic designs.
  • Operations: The company's production processes emphasize quality control and efficient delivery, although challenges remain in scaling new electric models promptly.
  • Human Resources: The company actively recruits and develops talent through training programs focused on innovation, inclusivity, and leadership development. Its ethical HR practices have mitigated legal issues related to diversity and working conditions.
  • Executive Leadership: Experienced, industry-savvy leaders guide Harley-Davidson’s strategic focus on electrification and global markets, fostering a vision aligned with industry shifts.
  • Supply Chain: Harley-Davidson’s supply chain management leverages strategic sourcing, vendor partnerships, and collaborative planning with suppliers to support new product launches.
  • Corporate Responsibility and Ethics: The company demonstrates responsibility through environmental initiatives, such as investing in electric vehicles, and community engagement, though ethical concerns related to supply chain transparency persist.
  • Safety and Quality: Harley-Davidson maintains high standards for safety and quality, responding to industry safety regulations and customer expectations, particularly as electric and connected vehicles gain prominence.

Weaknesses and Threats

Despite strengths, Harley-Davidson faces internal weaknesses such as falling global market share, high manufacturing costs, and lagging innovation in entry-level and electric motorcycle segments. External threats include intense competition from Asian manufacturers, shifting consumer preferences towards urban mobility solutions, and regulatory challenges related to emissions and safety standards (Harley-Davidson, 2023).

Part III: Growth and Profitability Strategies

To position Harley-Davidson for continued growth, bold strategic initiatives are critical. Key strategies include expanding electric motorcycle offerings, entering emerging markets, and forming strategic alliances. Vertical integration opportunities, such as acquiring niche electric component manufacturers, could reduce costs and foster innovation. Forming alliances with technology firms could accelerate development of connected and autonomous motorcycles, aligning with the future of mobility.

Another growth avenue involves developing new brands that target urban commuters and younger demographics. Expanding geographic reach into Asia, Latin America, and Africa aligns with global growth trends. Internal growth strategies emphasize product diversification, including adventure and touring vehicles, while leveraging existing brand strength to cross-promote across regions and customer segments.

From a diversification perspective, Harley-Davidson should consider entering the electric scooter and e-bike markets, aligning with sustainability trends and urban mobility needs. Such diversification could increase market share and enhance brand perception as a forward-looking company.

Top strategic ideas, ranked from most to least promising, include:

  1. Accelerating electric motorcycle development through targeted R&D investments. (Rationale: Builds on current competencies, taps into growth of electric vehicles, and aligns with environmental trends.)
  2. Forming joint ventures with tech firms specializing in IoT and connectivity to develop smart motorcycles. (Rationale: Leverages technological expertise, enhances product appeal.)
  3. Expanding into emerging markets like India and Brazil with tailored models and localized marketing strategies. (Rationale: Diversifies revenue streams, reduces dependency on mature markets.)
  4. Developing new urban mobility brands, such as electric scooters or e-bikes, targeting younger urban consumers. (Rationale: Expands customer base, fosters innovation.)
  5. Acquiring or partnering with adventure motorcycle manufacturers to diversify into new riding segments. (Rationale: Complements existing offerings, taps into adventure tourism market.)

Each of these strategies harnesses Harley-Davidson’s strengths while addressing industry dynamics and consumer preferences. Their implementation involves assessing resources, potential risks, and readiness for large-scale change.

In conclusion, Harley-Davidson’s strategic prospects depend on leveraging its heritage brand while innovating in electric mobility, expanding globally, and forming strategic alliances. A balanced approach combining internal development and external partnerships will ensure sustainable growth and market relevance in an evolving motorcycle industry.

References

  • Harley-Davidson. (2023). Annual Report 2023. Harley-Davidson, Inc. Retrieved from https://investor.harley-davidson.com
  • Harley-Davidson. (2023). About Our Brands. Harley-Davidson official website. Retrieved from https://www.harley-davidson.com/us/en/about-us/brands.html
  • Gamble, J. E. (2021). Strategic Management & Competitive Advantage: Concepts and Cases. McGraw-Hill Education.
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