Business Unit Analysis And Feasibility Study Instructions

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 or business unit 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 law suits 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.

Paper For Above instruction

Introduction

Harley-Davidson Inc. (H-D) stands as a legendary American motorcycle manufacturer, widely recognized for its strong brand identity, heritage, and loyal customer base. Conducting a comprehensive feasibility study entails analyzing its business units, internal strengths and weaknesses, and strategic growth opportunities. This analysis provides critical insights into Harley-Davidson’s current market positioning, competitive environment, and future potential, guiding executive decision-making towards sustainable growth and profitability.

Part I: Differentiation Strategies and Business Unit Analysis

Harley-Davidson’s portfolio encompasses several brands and business units, each serving distinct market segments with unique value propositions. Based on data from the official website and annual reports, the core brands include Harley-Davidson Motorcycles, Harley-Davidson Electric, and the Cruiser line, among others. Each brand’s size, scope, target markets, services, amenities, and points of differentiation are examined below.

Harley-Davidson Motorcycles

This is the flagship brand, targeting predominantly mature riders and enthusiasts seeking premium, durable cruiser motorcycles. Its scope covers large-displacement bikes that emphasize heritage, performance, and customization options. The target market is typically middle-aged males with disposable income, though recent efforts aim to broaden demographics. Differentiation stems from its iconic design, strong brand loyalty, and a global dealer network providing personalized services and aftermarket options.

Harley-Davidson Electric

This newer segment focuses on electric motorcycles targeting environmentally conscious consumers and urban riders seeking quieter, emission-free alternatives. Its scope is smaller but rapidly expanding, with ample scope for growth as electric vehicle adoption rises. Its differentiation lies in innovative technology, sustainability focus, and the Harley-Davidson heritage hinting at empowerment and adventure.

Cruiser and Custom Line

These units aim at riders interested in versatile, customizable bikes that offer a blend of performance and aesthetics, often appealing to younger or more diverse demographics. These brands differ in design and target slightly different market niches, with some overlap in target demographics.

Market Analysis and Portfolio Gaps

The analysis reveals some gaps in electrification, youth appeal, and customization, suggesting opportunities for new product lines or strategic collaborations. The portfolio could expand into connected mobility or shared services, addressing urbanization and evolving rider preferences. Potential mergers or joint ventures with technology firms could leverage Harley’s brand heritage while innovating in mobility solutions.

Part II: SWOT Analysis

A detailed SWOT analysis reveals Harley-Davidson's internal capabilities and external challenges.

Strengths

Harley’s iconic brand recognition, a loyal customer base, extensive dealer network, and strong heritage bolster its market position. Its marketing capabilities excel in lifestyle branding and personalized customer experiences, fostering strong brand loyalty. Operationally, the company maintains high-quality standards, with efficient manufacturing processes supporting consistent product delivery.

Weaknesses

Limited diversification beyond motorcycles constrains growth. High product costs restrict access for younger or more price-sensitive consumers. Internal challenges include legacy production methods that may hinder innovation and slow response to market changes.

Opportunities

Emerging markets, electric mobility, and connected vehicle ecosystems offer growth avenues. Expanding into apparel, accessories, and digital services could diversify revenue. Strategic alliances with tech companies could address innovation gaps.

Threats

Intense competition from Japanese and European motorcycle brands, shifting consumer preferences toward electric vehicles, and global economic uncertainties pose threats. Regulatory challenges on emissions and safety standards could add compliance costs. Reputation risks from safety issues or supply chain disruptions also loom.

Functional Areas Assessment

- Marketing: Harley excels at narrative-driven campaigns that build lifestyle image. However, greater focus on digital, social media, and innovative product launches could enhance engagement.

- Operations: Manufacturing quality is high but relies on legacy systems that may impede agility.

- Human Resources: The company has a reputable HR history but must adapt to new workforce expectations and diversify talent.

- Executive Leadership: Experienced leadership provides strategic vision, but innovation and industry foresight should be continuously strengthened.

- Supply Chain: The strategic sourcing approach is robust, but increasing reliance on global suppliers raises risks.

- Corporate Responsibility and Ethics: Harley demonstrates social responsibility through environmental initiatives, yet transparency and stakeholder engagement can be improved.

- Safety & Quality: Ongoing investments in safety features and quality control are critical to address safety concerns in the motorcycle industry.

Part III: Growth and Profitability Strategies

Harley-Davidson’s future strategies should leverage its brand while expanding into emerging markets and new mobility solutions. Based on the analysis, the following strategies are recommended:

1. Vertical Integration: Expand production capabilities for electric motorcycles and key components to reduce dependency on suppliers and innovate more rapidly.
2. Strategic Alliances & Joint Ventures: Partner with technology firms specializing in connectivity, autonomous systems, or renewable energy to embed advanced technologies into Harley’s offerings, creating a competitive edge.
3. Entry into New Geographies: Focus on penetrating Asian markets like India and Southeast Asia, adapting products to local preferences and price points.
4. Develop New Brands & Sub-Brands: Launch lifestyle-oriented brands targeting younger demographics, leveraging Harley’s heritage while innovating in aesthetics and functionality.
5. Acquisitions & Portfolio Diversification: Acquire or merge with startups in electric mobility, connected mobility, or mobility-as-a-service platforms to diversify revenue streams.

Ranking of Strategies:

1. Strategic alliances with tech firms – high potential for innovation and relevance.

2. Entry into Asian markets – substantial growth opportunity with manageable risks.

3. Vertical integration in electric components – enhances control and innovation.

4. Developing new youth-oriented brands – aligns with diversification but requires significant branding effort.

5. Acquisitions in mobility services – promising but risky in execution and integration.

Among these, the top strategies build on Harley’s core strengths—brand prestige, innovation potential—and foster synergy across product lines. They leverage existing capabilities while positioning the company for future industry shifts.

Conclusion

Harley-Davidson stands at a pivotal juncture where embracing innovation, expanding global footprints, and strategic collaborations can revitalize its legacy. Through thorough analysis of its business units, internal SWOT, and growth strategies, Harley can consolidate its strengths, address weaknesses, and capitalize on emerging trends such as electric mobility and connected services. Implementing these carefully prioritized strategies will position Harley-Davidson for sustained growth and profitability in the evolving motorcycle industry landscape.

References

1. Harley-Davidson, Inc. (2023). 2022 Annual Report. Retrieved from https://investor.harley-davidson.com
2. Harley-Davidson. (2023). Brand Portfolio. Retrieved from https://www.harley-davidson.com
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