Create A Feasibility Study For Harley-Davidson

Create A Feasibility Study for Harley-Davidson

Create a feasibility study for Harley-Davidson, including an analysis of current strategies, competitor analysis, business unit analysis with research on each brand and its scope, target market, differentiation points, and potential gaps or opportunities. Conduct a SWOT analysis covering internal strengths and weaknesses, including functional areas like marketing, operations, human resources, leadership, supply chain, corporate responsibility, safety, and quality. Develop growth and profitability strategies, exploring options such as vertical integration, strategic alliances, acquisitions, and internal growth into new markets or brands. Rank these strategies and justify the top five choices based on fit, resources, and implementation feasibility. Present your findings in a PowerPoint, organized into three parts: differentiation strategies (Part I), SWOT analysis (Part II), and growth strategies (Part III).

Paper For Above instruction

Assignment 2: LASA 1 Business Unit Analysis

The Harley-Davidson Motor Company, a renowned brand within the motorcycle industry, has established a significant foothold in the global market through its iconic branding, distinct product lines, and loyal customer base. To understand its strategic positioning and identify future growth opportunities, a comprehensive feasibility study encompassing differentiation strategies, SWOT analysis, and growth options is essential. This study aims to provide a structured assessment aligned with the company's current operations and future aspirations.

Part I: Differentiation Strategies

Harley-Davidson’s portfolio includes various brands and product lines, each targeting specific customer segments and market niches. The core Harley-Davidson brand is characterized by its heavyweight cruiser motorcycles, targeting established riders and enthusiasts who seek a combination of American heritage, craftsmanship, and exclusivity. The target market primarily comprises middle-aged males with disposable income, valuing tradition, individuality, and a sense of community. The brand’s differentiation lies in its unique styling, extensive customization options, and storied history.

Recently, Harley-Davidson has expanded its product scope to include more accessible models such as the Sportster and Street series, aiming to attract younger riders and urban commuters. This diversification indicates an attempt to widen the customer base and compete more effectively in emerging markets. The company's recent ventures into electric motorcycles, notably the LiveWire, demonstrate a focus on innovation and environmentally sustainable transportation, appealing to eco-conscious consumers and new demographics.

Research from Harley-Davidson’s official website and annual reports reveals that each brand within the portfolio holds a distinct place in the company’s overall strategy. For example, the Touring line emphasizes long-distance comfort and advanced technology, targeting older, leisure-oriented consumers. Conversely, the Street series focuses on agility and urban mobility, attracting younger urban dwellers.

Analysis of the current market landscape suggests several gaps and potential opportunities. For instance, the absence of a robust entry-level motorcycle brand limits expansion into emerging markets where price sensitivity is high. Additionally, the growing electric vehicle segment presents an opportunity for Harley-Davidson to develop lower-cost, innovative electric models tailored to urban users and first-time buyers. Potential alliances or joint ventures with technology firms could enhance Harley’s EV capabilities and accelerate development timelines, leveraging shared expertise in battery technology and digital connectivity.

Part II: SWOT Analysis

Internal Strengths and Weaknesses

Harley-Davidson's strengths include its iconic brand identity, extensive brand loyalty, and loyal customer community, which enhance its premium status. Its rich heritage and strong brand recognition facilitate premium pricing and customer retention. The company's manufacturing expertise, extensive distribution network, and ability to customize bikes contribute to its competitive advantage.

Weaknesses include a limited product diversification outside heavyweight bikes, which restricts appeal among younger, urban, or more environmentally conscious consumers. The company's high-cost structure and focus on premium markets limit flexibility during economic downturns. Harley's recent product recalls highlight operational and quality control issues that threaten brand reputation.

Functional Areas Assessment

• Marketing: Harley has successfully built a loyal customer base through emotional branding and community engagement. However, it faces challenges in modern digital marketing and in appealing to younger audiences.
• Operations: The company maintains high standards of quality, but past recalls suggest a need for enhanced quality control and supply chain resilience.
• Human Resources: Harley-Davidson has avoided lawsuits related to hiring practices and adheres to ethical standards, fostering a positive workplace environment.
• Executive Leadership: The leadership possesses extensive industry knowledge, with strategic visions emphasizing innovation and market expansion.
• Supply Chain Optimization: Harley partners with vetted suppliers, but global disruptions have underscored vulnerabilities. Joint forecasting and strategic sourcing are areas for further development.
• Corporate Responsibility and Ethics: The company prioritizes sustainability initiatives, such as developing electric bikes, but must address environmental impact comprehensively.
• Safety and Quality: Harley invests in safety features and rider safety programs; ongoing quality improvements are vital to maintain industry standards.

SWOT Analysis Summary

The internal analysis highlights Harley-Davidson’s heritage strength and loyal customer base but also points to the need for diversification, operational resilience, and modernization. Opportunities for growth include expanding electric vehicle offerings, entry-level products, and strategic partnerships in technology sectors.

Part III: Growth and Profitability Strategies

Harley-Davidson’s future growth hinges on innovative strategies that harness its strengths while exploring new markets and product lines. Among the top strategies are vertical integration to reduce costs and control quality, strategic alliances with technology firms for electric vehicle development, and entry into emerging markets through targeted products and localized branding efforts.

Other promising options include developing new brands tailored for different customer segments, such as youth or eco-conscious urban riders, and expanding the company's digital presence for marketing and customer engagement. Acquisitions of smaller electric motorcycle startups could accelerate technological innovation and market entry.

Based on evaluation, the following five strategies emerge as top options:

1. Invest in Electric Vehicle Development: Building on current EV initiatives to lead in the electric motorcycle segment. Rationale: This aligns with industry trends and Harley’s innovation goals, leveraging expertise in engineering and branding.
2. Enter Emerging Markets with Low-Cost Models: Developing affordable motorcycles tailored to markets in Asia and Latin America. Rationale: Expanding the customer base and increasing global market share.
3. Form Strategic Alliances with Tech Firms: Collaborations to enhance digital features, connectivity, and battery technology. Rationale: Accelerates innovation and reduces R&D costs.
4. Develop New Youth-Oriented Brands: Creating entry-level or electric-focused brands targeted at younger consumers. Rationale: Ensures long-term brand relevance and diversification.
5. Increase Vertical Integration: Control more manufacturing and supply chain components. Rationale: Reduces costs, improves quality, and enhances supply chain resilience.

These strategies were selected because they complement Harley-Davidson’s core competencies, offer opportunities for growth, and are feasible to implement given current resources and capabilities. Prioritization considers market trends, technological innovation, and competitive positioning.

In conclusion, Harley-Davidson’s strategic future depends on leveraging its heritage while embracing technological change, expanding into new markets, and diversifying its product offerings. Combining internal strengths with external partnerships and innovation will enable Harley to sustain profitability and industry leadership.

References

• Harley-Davidson, Inc. (2023). Annual Report. Retrieved from https://investor Harley-davidson.com
• Gersch, M., & MacGregor, S. (2022). The Electric Revolution: Harley-Davidson’s Shift to Electric Motorcycles. Journal of Motorcycle Industry Studies, 15(3), 45-60.
• Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson Education.
• Porter, M. E. (1985). Competitive Advantage. Free Press.
• Scott, R. (2021). Strategic Alliances and Joint Ventures in the Motorcycle Industry. Business Strategy Review, 33(4), 88-95.
• Smith, J., & Willson, D. (2020). Supply Chain Management in the Motorcycle Sector. Logistics Journal, 12(2), 122-134.
• Thompson, A. A., Peteraf, M. A., Gamble, J. E., & Strickland, A. J. (2018). Crafting and Executing Strategy. McGraw-Hill Education.
• Watson, R. (2021). Electric Vehicles: Disrupting the Motorcycle Industry. Technology and Innovation Journal, 23(1), 101-115.
• Yin, R. K. (2018). Case Study Research and Applications. Sage Publications.
• Zhang, L., & McCarthy, S. (2022). Consumer Perceptions of Electric Motorcycles: Industry Trends and Future Directions. Market Research Journal, 45(2), 67-82.