Harley Davidson Company - Essay Example

A value chain analysis is the analysis of the activities that take place in this company that gives it a competitive advantage over those in the same industry. Michael Porter identified that all companies have primary and support activities that help in developing their core competencies in the industry. This analysis is a useful tool for defining a firm’s core competencies by identifying the cost advantage and differentiation. Cost advantage primary objective is comprehending costs and getting them from the value adding processes.

There are several cost drivers related to the value chain processes, Harley Davidsons economies of scale, its capacity utilization, level of vertical integration, market entry timing, its geographic location and the firm’s policies regarding cost management. When these drivers of costs are properly managed, the company obtains a cost advantage over its competitors. Differentiation focuses on those related with core competencies that help the company attain an edge in performance. The uniqueness drivers for a company is made up of integration, location, interrelationships, scale and institutional factors.

To achieve different degrees of differentiation, the company may amalgamate frontward, recede or implement novel technologies and use advanced delivery channels. SWOT Analysis Harley Davidson derives its strengths from the corporate culture, corporate resources and corporate structure. In their corporate culture, the company empowers their employees by building relationships for promoting stronger bonds between the top management and employees. The cooperate structure is composed of overlapping functions that embody the marketing and sales departments.

The functional circle in the structure is named the Leadership and strategy council(LSC) Model. This circle facilitates decision making in the firm. The corporate resources are also a source of their strength and are represented by the marketing department, finance, research and development, HRM department, operation and logistics and their information systems. Their strengths are derived from all these departments performing their roles in product offering. For example, the marketing department has created a niche in the market for those customers who have a preference for heavyweight motorcycles, their prices are affordable for customization as well as personalization of the bikes.

They have opened business branches around the world, and the customer capacity is large. The human resource has empowered the workforce by motivation. Their weakness remains in the reality that it needs to upsurge its sale so that they can retain their market share in the U.S especially at this economic slump. Recently it has been losing the market share due to the failing economy. The research and development department needs to design environmental friendly motorcycles. The current society is empowered to conserve the environment and a lot of people want to buy products that are friendly to their surroundings.

Their information system did not use their systems properly to manufacture energy saving motorcycles. From the weaknesses lies the opportunities for the company to identify and formulate strategies that will help it achieve a competitive edge against the