Case study: Harley-Davidson CompanyStrategic choices The strategic choices made by the company were suitable as they tried to meet the needs of every stakeholder of the company. They were acceptable as most people involved in the activities accepted the choices. They were feasible as the choices were realistic and well planned. The strategic choices made described a change of strategic position. For instance, the introduction of a new motorcycle that would appeal the younger generation was a suitable choice and therefore, accepted. It was realistic and well planned (Ryan & Wheelen 2002).
In addition, one may argue that the suitability of the choices made by the company lies on the fact that they have assisted the company to penetrate new markets, increase the company’s brand image, developed the products and diversification of the products. It is obvious that the strategic choices assisted in increasing profits and other returns proved that the company had indeed made excellent strategic choices. Basically, the strategic choices made by the company had a profound positive effect on the running of the company and is suited to predict the future need to keep the strategic position. Strategic environmentCompetition in the industry is a basic way t describe the strategic environment.
The company is facing stiff competition from some competitors such as the Japanese manufacturers such as Honda and Suzuki who introduces their motorcycle into the market with competitive prices. The Japanese companies improved the qualities of their products and decreased the costs as compared to the Harley-Davidson. In addition, the introduction of Gold Wing by Honda Motor Company also increased competition in the industry. The management changed its strategies in order to counter the heavy effect of the Japanese companies and other manufactures.
One way to counter this was the introduction of Material as Needed system that reduced inventories and led to the stabilization of production. In addition, product diversification plays a great role in countering the competitors’ activities. Financial assistance contributed to the company increasing its effectiveness in the competitive market. Indeed, these assisted in removing the long term obstacle and long term survival. Creation of more markets worldwide and improving the quality of the motorcycle increases the chance of survival in the market.
Pestle analysis Political and legal analysisImport taxes have both disadvantages and advantage on the company; Have more leverage over the competitors in America through the regulations that were meant to restrict the Japanese companies; The prices of bicycle imposed by the Chinese government limit the entry into the Chinese market; this is also applies to India where the political barriers do not favor the company; Restriction on motorcycle age riders and requirement of licenses and other legal taxes affect the company marketing strategiesEconomic analysisRise of fuel prices; High competition in the industry; Costly in some countries as the motorcycle are viewed as a luxurySocial analysisMost people view the company products as prestige and therefore, created a loyalty; SafetyTechnological analysisIntroduced excellent designs; The company has been able to trade mark the products using Noise Vibration Harshness technologyPorter’s forces analysisPotential new entrantsThe threat of new entrants to the company is low.
Entry to such an industry requires large sum of capital. Being an already established company, they have a brand of recognition. This basically means that any new firm has to use a lot of capital in promotion and advertising to receive the same recognition as the company.
Bargaining power of the buyerThe bargaining power of the buyer is high. The company thrives in customer loyalty as they offer the clients better products than they own. Still, the company is said to possess some power over its customers as its brand is consider a symbol in the United Status. Therefore, most citizens feel that there are no substitutes to the company’s products.