CASE ONE: HARLEY DAVIDSON INC.

RISE AND RISE OF A LEGEND

INTRODUCTION 1. Its a genuine success story of a motorcycle legend wherein the company grew from strength to strength, despite of the problems which it faced in interim period. The company was founded in 1903-1981 by Harley and Davidson. It did a humble beginning by producing bikes in garage. Later, their 2 cylinder, V twin engine, deep rumbling sound became rage of America. However, it faced challenge from Japanese companies like Honda. Subsequently, it lot of business and started to lose its share in motorcycle business rapidly. 2. From 1981-2006 was a period of rebirth for the company. After the acquisition, it emerged as an independent, privately owned company which was heavily laden with depth. Thus they engaged into heavy staff cuts and layoffs. It also started rebuilding production methods and working practices, it helped in cutting cost and improve quality. They also deployed Just In Time inventory management to cut inventory cost. As it went public its share of market rose steadily from 30% to 60%. 3. Harley became a leader of heavyweight motorcycles and thereafter started to show global inclination. However, it lagged behind Japanese companies in terms of features, innovations, new technology and cost. There after company concentrated in building brand image, product innovation and customisation, development of distribution network, increasing the product range (accessories) international expansion, efficient operations and superior Human Resource management. Hus, it was able to give stiff competition to all international Brands. ICING ON THE CAKE 4. Well! by the time I had reached Mumbai, My connecting flight had already departed. My restlessness started to grow on realisation that not only I would lose money on the ticket but also would miss essential conference. Well!! I was in for surprise. The Air Indias Airport Manager patiently listened to my problem and few phone calls later I was zooming past in an air-conditioned Taxy, on my way to Nashik. All is Well that ends Well.

CASE ANALYSIS 5. Core Competency. Its core competency is in manufacture of heavy bikes. Vision is clear to increase their earning per share growth over next three years. Three consecutive presidents have spoken good about the company. 6. Sl No 1 2 3 4 5 6 7 8. 9 10. Environmental External Factor Analysis (EFAS). External Factors (threats and Oppurtunity) Threats Number of Japanese firms High end technology of competitor Large sale volume Product spread Distribution network Global reach Opportunity Brand value Product Differentiations Efficient operatioon Superior HRM TOTAL Weight .2 .05 .05 .05 .1 .05 .2 .1 .1 .1 Score 3 2 2 2 4 2 4 2 4 4 Weighted Score .6 .1 .1 .1.4

7. Resource Based View of the Firm. Considering Resources, Capabilities, Competitive Advantage and Strategy of the firm. We would undertake SWOT Analysis of the firm:Sl No Value Rarity Imitate Used by Competitive Implication Organisation

8. Internal Factor Analysis Summary (IFAS). Considering internal strengths and weakness od the company following can be formulate:-

Sl No 1 2 3 4 5 6 7

Internal Factors (threats and Oppurtunity)

Weight

Score

Weighted Score

9. Strategic Factor Analysis Summary (SFAS). After through understanding of the most important EFAS and IFADS it would be possible to narrow down to those points which have direct bearing on the operations of the company. Thereafter it would be possible to develop a strategy which is most suitable for the development of the company to the expected levels. The SFAS for the company aree as follows:-

Sl No 1 2 3 4 5 6 7

Key Strategic Factors

Weight

Score

Weighted Score

10.

Type of Industry.