Harley-Davidsons Strategic Assets: Powering Its Competitive Advantage

Abstract

Module 2 Exercise 2: Analyzing Resource and Capabilities – The Sources of a Firm’s Competitive advantage 10 points Submit in Sakai Assignments no later than 10 pm 9/26 Read the following mini-case. Address the tasks below with a brief Word document. Do not write a large report or one long paragraph; write “Task 1” followed by your answer, “Task 2” followed by your answer etc. Include your name And Module 2 Exercise 1 at the top. Task 1: List all of Harley-Davidson’s strategic RESOURCES that you can identify from the case. There are over ten….can you identify them all… Task 2: List all of Harley-Davidson’s strategic CAPABILITIES that you can identify from the case. There are over ten….can you identify them all… Task 3: Considering BOTH of your lists above, which FIVE strategic assets do you believe are the most valuable sources of Harley-Davidson’s competitive advantage. List these five. Task 4: Create and show a rate rank matrix like the examples in the video. Create this using either the table function within Word or using Excel and then inserting the spreadsheet into the Word document for your submission. Use the evaluation method with the VRI criteria and show your ratings and results. Task 5: Identify which strategic asset you believe is the MOST valuable. Write a short paragraph arguing why you make this conclusion (revisit good argument structure and process from Module 1). ------------------------------------------------------------------------------------------------------------ Harley-Davidson in 2020: Can the Keep Their Engine Roaring? Harley-Davidson (Harley) has been the worldwide leader in super heavyweight on-road motorcycles for decades. Their iconic lifestyle brand is known worldwide for representing values of individuality, independence, adventure, and freedom. Their styling of cruiser and touring style motorcycles, all designed to allow owners to easily customize their bikes as they desire, has maintained a consistency for over 100 years such that their products are easily recognizable on sight - and by their sound. But economic and demographic changes have had a negative impact on Harley’s performance over the last decade. There are fewer young people entering the motorcycle market and those who do are far more inclined toward lower cost and higher performance sport bikes. Seeing Harley’s success in the 80s and 90s, the large Japanese motorcycle brands also launched large cruiser models that have taken significant market share in this segment. Can Harley reinvent itself in a way to maintain its place as the ‘great American motorcycle company’ or are they going to become an example of a firm unable to evolve from a dominant position in a declining market segment? Can they escape the trappings of their own past success? Harley design, manufactures, and wholesales heavyweight, V-Twin engine on-road motorcycles. Their largest categories are cruiser and touring models, but their lineup also features sportier performance bikes, new electric models, and even electric bicycles. Each model of is designed with easy end-user customization in mind and thus a wide range of accessories and custom add on parts are also produced and sold. Parts, accessories, and apparel represent over 20% of the firm’s revenue. Based on Harley’s iconic brand logo and associated image, much of the accessories and general merchandise revenue comes via their licensing operations through which thousands of third-party manufacturers contract to pay royalties on the sales of a wide range of clothing, collectibles, and other general merchandise. Protecting and promoting the valuable base of Harley’s many product patents and design trademarks is a major activity. Harley is striving to maintain their traditional product category and loyal followers while also innovating and evolving toward a changing future. Recent product development has been focused on electric on-road motorcycles and models featuring sleek, performance designs rather than the traditional super-heavy, large-engine cruiser and touring models. To produce and assemble their products, Harley operates seven manufacturing...