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The Case Study Of Harley-Davidson's Business Strategy

1493 Words6 Pages

Introduction
Harley-Davison is an American icon which survived many decades where other U.S. motorcycle firms have failed. In this case study, the threats in external environment it faces, its core competencies which leads to sustainable competitive advantage, its business strategy, and its performance in international markets are discussed. In addition, recommendations on how the company can change is strategy to address the threats it faces, as well as how it can better support its overseas expansions, are included.

Analysis
History of Harley-Davidson
In 1903, the Harley-Davidson Motor Company was founded by William S. Harley and Arthur Davidson to fund their facing pursuits. Selling through dealerships, the demand for their early models was fueled by their success in motorcycle racing. During World War I and World War II, the company supplied to the U.S. Army, establishing itself among the soldiers.
After the war, Harley-Davidson enjoyed great success and took excessive risks in acquisitions, which had poor fit with the company though the acquisitions were in similar industries. This led to financial trouble and subsequent purchased by the American Machine and Foundry Company (AMF) in 1969. Under AMF, its image deteriorated due to reduced marketing and research and development (R&D) efforts, and quality became a big issue.
By 1981, Harley-Davison was facing strong competition from Japanese motorcycles, and its sales declined greatly. Finally, the management and staff

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