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Essay / Research Paper Abstract
This 6 page paper considers the competitive position and strategy of Harley Davidson. The paper is written in four parts, the first looks at the current position and strategy, the second examines the potential future threats using Porters five forces model. The third part considers the resources and advantages of Harley Davidson compared to their nearest rival; Honda. The last part of the paper discusses how the company should continue to compete. The bibliography cites 8 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEharldv.rtf
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Unformatted sample text from the term paper:
it has to develop a competitive advantage and that there are only two sources of competitive advantage (Porter, 1980, 1985). These are cost advantage, this is not where goods are
sold more cheaply, but where the costs of production to the company are lower (Thompson, 1998). This is not an advantage that Hartley Davidson have. The second is that of
differentiation, this is where the product is different from those of its competitors, with features or perception that add value and may justify a higher price or give the impression
of greater value (Thompson, 1998). It is this second competitive advantage that Harley Davidson have sought to use, promoting the riding of the bike as an experience and associating the
bike with quality and prestige. However, this is a strategic approach, the actual strategies used to grow using this advantage also need to be considered.
Growth has been undertaken with expansion of the product range, diversification and adjustments to the value chain as well as the use of strategic alliances and
acquisition. Diversification has all be related, all of which services to increase the recognition of the name and also to reinforce the values that the brand stands for and
create a higher demand for the bikes. The diversification the home market has included elements such as the increased use of the internet and the Rent a Harley scheme. These
emphasised the bike, but also the perception of the ride as the experience. Strategic alliances were also seen with technical endeavours targeted, and the acquisition of Buell also increased
capacity, a new product range and reduced competition (Grant 2001). The growth of the company aided by these was also due to a strong placement in the market due to
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