use the functional classification and value chain perspectiv

use the functional classification and value chain perspectives to identify Harley-Davidson\'s principal resources and capabilities. Can their resources and capabilities confer sustainable competitive advantage? What strategy recommendations would you offer to Harley-Davidson\'s management team?

Solution

Harley Davidson’s has a Focus - Differentiation Strategy within just a small number of target segments Cost Advantage.Focus Strategy  believe that motorcycles are sports vehicles, not transportation vehicles. Focus on Heavyweight market with customers who consider their motorcycle a luxury product.

Value chain perspective : Creating customer value by providing: Test ride facilities : Owner‘s club activities :Various sponsored events for Harley riders

In my opinion can\'t confer competitive advantage over others for long time.It has advantage only in specific area and in upper middile and higher class custmors. because of folowing reasons

> Harley-Davidson lacks in their resources and capabilities to have cost advantage.

> low economies of scale and learning curve due to low production

> Harley’s international exposure as a key weakness demonstrates the inefficient sales in order to sustain their other resources such as product diversification

Therefor I recommend some changes in strategy as folows:

>They should focus on specific price segment and reduce the cost by increase in production.

>They should be some more innovative and simple towards custmors preference AND reduce margin for increase sales.

>They should aim to achive higher market share in europe, asia AND reinforce intelactual property such as more patents.

> they should be unique in their product design and make it less imitable.