Introduction

Harley-Davidson, Inc. is one of the most prominent motorcycle manufacturers in the world. The
company achieved this market position through its generic strategy for competitive advantage
and its intensive strategies for growth. Harley-Davidson’s generic competitive strategy (based on
Michael Porter’s model) pushes for product innovation. The company uses its innovation
processes to ensure competitiveness against other popular motorcycle manufacturers. Also,
Harley-Davidson’s intensive growth strategies indicate product innovation along with increased
reach in the global motorcycle market. However, the company could benefit from some
adjustments in its intensive growth strategies. Harley-Davidson’s generic strategy for
competitive advantage and intensive growth strategies are supportive of resilience in the face of
market fluctuations.

When Harley-Davidson was founded in 1903, it was one of over 100 firms producing
motorcycles in the United States. The U.S. government became an important customer for the
company's high-powered, reliable bikes, using them in both world wars. By the 1950s, Harley-
Davidson was the only remaining American manufacturer.

Statement of the problem

Analytical tools

Harley-Davidson’s generic competitive strategy (Porter’s model) reflects unique product features
as a main selling point of the business. The intensive strategies facilitate potential growth for
Harley-Davidson through appropriate strategic objectives.

Harley-Davidson’s Generic Strategy (Porter’s Model)

As the fifth largest motorcycle manufacturer in the world, Harley-Davidson has used its generic
strategy to ensure competitive advantage for this market position. A combination of generic
competitive strategies are applied in Harley-Davidson’s business, as follows:

Differentiation Generic Strategy

Focus Generic Strategy

Harley-Davidson’s Intensive Strategies (Intensive Growth Strategies)

The key success factors for a firm operating in this industry

3.0 Analytical Tools

Application of differentiation as its main generic

Strategy for competitive advantage. Unique product features are the main point in this generic
strategy. For example, Harley-Davidson popularized the chopper motorcycle style through
unique customization. However, the company also uses the focus generic strategy in combination
with differentiation. The focus generic strategy supports competitive advantage by increasing
Harley-Davidson’s customer base in certain market segments. For example, the company focuses
on motorcycle enthusiasts, especially those who are interested in the chopper biking culture. A
strategic objective linked to the differentiation generic strategy is to build Harley-Davidson’s
competitive advantage based on unique product innovation. In relation, the focus differentiation
strategy leads to the strategic objective of strengthening the chopper biker culture that enables
Harley-Davidson’s competitive advantage in this market segment.

Market Penetration. Harley-Davidson’s primary intensive growth strategy is market

penetration. The company grows by using this intensive strategy in reaching more customers in
its current markets, such as the United States. For example, Harley-Davidson promotes and sells
more products to new customers in America. This intensive strategy is the main approach that
leads to the company’s continued growth. A strategic objective linked to market penetration is to
increase Harley-Davidson’s sales network. Also, the differentiation generic strategy empowers
Harley-Davidson to penetrate current markets.

Product Development. Product development used to be Harley-Davidson’s primary intensive

strategy for business growth. Product innovation is the key point in this intensive strategy. For
example, Harley-Davidson’s customization for the chopper motorcycle style attracts and retains
customers. However, now that other motorcycle manufacturers have developed similar styles,
Harley-Davidson now uses product development as an intensive growth strategy secondary to
market penetration. A strategic objective linked to the product development intensive growth
strategy is to increase research and development (R&D) investment that leads to highly
competitive unique motorcycles. This intensive growth strategy supports Harley-Davidson’s
mission and vision statements through value-added activities and expansion of the product mix.
In relation, product development aligns with the differentiation generic competitive strategy.

Market Development. Harley-Davidson applies market development as a supporting intensive

growth strategy. The company grows by applying this intensive strategy in entering new
markets. For example, Harley-Davidson can establish new operations in more countries. At
present, however, this intensive strategy has only a supporting role because the company limits
its global expansion. A strategic objective based on this intensive growth strategy is to increase
Harley-Davidson’s supplier network to support global expansion and growth. The company can
use this intensive growth strategy to support the focus generic strategy for competitive
advantage.

4.0 Marketing Turnaround strategies

5.0 constraints

6.0 conclusions

In conclusion in comparison to Harley-Davidson ‘near-death’ is not about to risk losing touch

with their market a second time. The organisation keeps abreast of changing customer needs

through a process called ‘Super-engagement’ This involves the managers riding on a regular

basis with customers and hearing their feedback directly. Hence organisation should set the
target for an increased level of attendance ….

It is a logical process for ensuring that your brand thrives during the upturns and downturns in

the market and continues to mean something special for your target customers. Whilst it is

simple in concept it requires expert execution. There are many organisations who speak

enthusiastically about customer experience and many consultancies who are promoting it as a

source of competitive advantage. Unfortunately, few of them have a systematic process for

turning the desire into business results. Perhaps that is why there are still few organisations
with a brand as powerful as Harley-Davidson’s!
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