In 500 words Critically evaluate the corporate level strategy of Harley-Davidson.
Harley-Davidson Corporate Level Strategy Evaluation
According to Hill, Jones and Schilling (2015), Harley Davidson utilized a plethora of strategies to evolve into one of the most famous and productive global motorcycle companies. The company uses differentiation and diversification to achieve the sustainable corporate strategy. Differentiation plays an essential role in creating difficulties for imitation by competitors, meets imperfect mobility of resources and reduces margins for the company. Making imitations by other companies difficult literally assists Harley-Davidson to sustain its intellectual property (Melief, Bundgaard & Hathaway, 2006). The company owns a separate R&D department for to realize consumer preferences. Harley-Davidson corporate-level strategies emphasize on the strategic scope of the whole enterprise.
Hill, Jones, and Schilling (2015) add that Harley Davidson primary corporate strategies comprised of the decision to identify and enter new geographical markets. Additional plans were consisting of acquisitions and inventing innovative products. Harley-Davidson employs professionals with adequate skills required to meet the increasing company. The company performs outsourcing to sustainable cost leadership position. Harley-Davidson market diversification and a strategic decision of penetrating the India market within a period of twenty to twenty-five years as a way of protecting the company’s local Indian Tata Nano market was a fundamental investment.
Today, the company strengthens its corporate strategy by selling gift items appropriate for all consumers including men, women as well as youths (Lenz, 2010). This approach depicts Harley-Davidson as a one-stop gift shop. Harley-Davidson emphasizes the growing need for integration of its services to improve its corporate level strategy. Different forms of integration such as horizontal integration through AMF, backward vertical integration via Tomahawk and boat manufacturing companies, forward vertical integration occur through dealership as licensing and financing exist as related forms. In the focus strategy, Harley-Davidson believes that motorcycles are sports vehicles as opposed to other transportation vehicles hence they always manufacture heavyweight vehicles to meet the rising preferences and choices of customers (Melief, Bundgaard & Hathaway, 2006). Harley-Davidson exists in the industry of selling lifestyle products hence it carefully examines all the activities that its clients undertake.
Additionally, Harley-Davidson establishes a sustainable corporate level strategy through price-based policies and lock-ins. Price-based strategies are essential at accepting reduced margins, winning the market price wars, reducing costs by improving the company value chain and enables the company to focus on specific segments. Nevertheless, Harley-Davidson price-based strategies help it to improve price transparency, enhances economies of scale by increasing the company sales in foreign markets such as Europe and Asia as well as increasing the production volume which has the effect of lowering the business cost per unit.
Lenz (2010) concludes that the corporate lock-in strategy enables Harley-Davidson to achieve market dominance, gain a fast move advantage, and develop reinforcement in the market via rigorous enforcement. The production of lightweight motorcycles assists the company to achieve a higher market share in Asia and Europe and reinforcing additional intellectual property rights such as more patent that are difficult to imitate. Lastly, it important to understand that Harley-Davidson corporate strategies are a perfect representation of the long-term direction for the organization which dwells in becoming the top motorcycle manufacturer in the world.
Bibliography Hill, C., Jones, G. & Schilling, M., 2015,
Strategic Management: an integrated approach, USA: Cengage Learning.
Lenz, S.,2010, Harley-Davidson, Inc.: A Strategic Audit, Western Michigan University Scholar Works at WMU
Melief, M., Bundgaard, T. & Hathaway, J., 2006, Strategic Report for Harley Davidson, Pandora Group-Out of the Box Consulting.