Harley davidson entry strategies for global expansion

Harley Davison Company Analysis

1. What are the main components of Porter's Diamond model?

2. What the Harley Davidson case is about?

3. How did Harley Davidson take advantage of Porter's four components' model (Diamond Model) to become a global company?

Strategic Analysis Worksheet

Executive Summary
Market background
Global Economy/ Factors Affecting Global Economy
Financial performance
Motivations/ Risks
Motivations for Expansion
Risks in Expansion
Competitive Advantage in Global Markets
Entry Strategies for Global Expansion
Internet Approach/ Strategy
How the Internet adds value
Internet Business Models
Competitive Strategies
Leverage E-Business Capabilities
Harley-Davidson is one of the most successful automobile company.
It is the leading manufacture of heavyweight motorcycles in the globe.
It commands a third of the global market and half of the US market.
The company specialized in heavy motorcycle production and giving credit to its customers to acquire the products
The 2008 global financial crisis affected the company’s profits negatively
The company reported losses for the two consecutive years of 2009 and 2010
The global economy has been recovering slowly since the year 2010
The company has taken advantage of the recovering economy to enter in to new markets
Its performance was affected by the global financial crisis of 2008 leading to reduction of its general revenues.
In 2009, the Harley Davidson reported a cash flow of $609 millions from its operating activities and a significant drop of 23.1% compared to 2008.
However, the company has been able to report consisted profits since the year 2011.
Global demand of its heavy weight touring and motorcycles
Buell motorcycle and Harley Davidson financial services (HDFS) making the credit for purchase of the companies products accessible across the globe
Need to expand its operation beyond the current 30 countries where it has its main operations.
Loss of the company’s focus on its main market in the US
It may lead to increased managerial problems which may make the company unable to maintain the quality of its products
It will be expensive to establish operations in the new markets
The Buell motorcycle and Harley Davidson financial services (HDFS) gives e company an upper competitive advantage over its competitors due to its ability to avail credit to its customers and enable them acquire the company's products.
Crowd outsourcing strategy being implemented recently which will give boost the company’s marketing efforts
The use of market penetration strategies in then new and emerging markets
The use of Market development strategies to enter deep in the less occupied markets to increase its market share. This is applied mainly in the US market.
Product development strategies to enhance the company’s diversification strategies.
The company is using the internet to enhance its marketing efforts in promoting its products in the overseas markets
Through the internet, the company ahs been able to establish a direct connection with its customers. It has successfully implementing the crowd sourcing marketing strategy through the internet.
It developed unique differentiation strategy to enable it competes effective with its rival companies.

It has invested more resources in enhancement of its product’s quality and design to make them more competitive.

The main competitors are Yamaha, BMW, and Honda.

Harley Division through its product differentiation degree has produced heavyweight cruisers and touring engines.

The company produces variety of motor engines to suit the diverse customer preferences.
The ability of the company to undertake market segmentation makes it possible to carry out price differentiation.
The high quality of the firm’s motor engines gives the company market power.
The company’s ability to conduct E-business is limited by the fact that the company deals with physical products
However, conducting the purchase through the internet is a viable option that may reduce the company’s distribution costs as it would be easy to identify the new and viable markets and establish distribution chains only in those markets.
Dess, G. (2011). Strategic Management: Text and Cases (6th ed). New York: McGraw-Hill Learning Solutions.

Gingerelli, D. (2011). Art of the Harley-Davidson Motorcycle. Michigan: MotorBooks International.

Stanfield, P. (2005). Heritage Design: The Harley-Davidson Motor Company. Journal of Design History, 5(2), 100-105.