Abstract

This case study is about the competitive strategy of US-based iconic motorcycle maker Harley-Davidson Inc. (Harley). Harley was the world’s leading designer and manufacturer of heavyweight motorcycles with over a 50% market share. Harley bikes were known for their distinctive design and heavy customization. By adopting a focused differentiation strategy, the company was able to command a premium for its products. The case highlights the key problems faced by the company which include plummeting sales due to the global economic recession and the changing demographics of its purchasers. To manage through the recession and expand the strength of the Harley-Davidson brand, the company launched a long-term business strategy called “Delivering Results through Focus” in October 2009. The case discusses the objectives of this focus strategy and how it improved productivity and profitability through continuous improvement in manufacturing, product development, and business operations. As part of the strategy, Harley transformed its operations to become more flexible and customer led. It focused on shortening product development lead times, implemented flexible manufacturing, and expanded globally. The case concludes by highlighting the set of issues that Harley needs to address for sustained long-term growth and profitability. This case is aimed at MBA/MS level students as part of the Business Policy/Strategic Management course curriculum.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the competitive strategy of Harley-Davidson
• Analyze the focused differentiation strategy adopted by Harley Davidson to differentiate itself from the competition
• Identify the issues and challenges faced by Harley-Davidson due to the financial turmoil and shifting demographics.
• Study the objectives of the “Delivering Results through Focus” strategy and examine whether this will help the company in overcoming the challenges it faces.
• Explore strategies that the company might adopt in the future to enhance profitability and productivity.

Keywords

Strategic direction, Competitive strategy, Focus strategy, Focused differentiation, Business strategy, 'Delivering Results through Focus', Global recession, Changing demographics, Circle-based organization structure, Strategic thinking, Four strategic pillars, Restructuring manufacturing, divestment, Lean operating structure, Continuous improvement, Product development, Business operations, Customer led marketing approach, Heavyweight motorcycle industry, Harley-Davidson