The Management of Harley-Davidson - Book Report/Review Example

The company faced the challenge of meeting the growing demand from its customers. It had to increase its capacity in production, set up new plants, and expand internationally as well as launch new motorcycle models.  In 2009, Harley-Davidson aimed at strengthening its brands (Grant, 639). The appeal of the brand was important in marketing the company as well as being central in its’ developmental strategy. This would ensure there is an extended and reinforced relationship with its consumers. In 1983, the company formed Harley Owners’ Group so as to increase the consumers’ involvement. Sales after enrolling in this program were based more on loyalty. For instance, over half of the sales were from those who had previously owned their products. This had deteriorated and there was a need to launch a new strategy aimed at restoring customers’ confidence.

                   Lagging behind in technology has been a major threat to its continued success compared to its competitors such as Honda and BMW. The small size incorporates and the inability to have shared R&D across to bikes and cars limited it to investing in new products and technology. Reconciling the differentiation of products with economies of scale is also a challenge. Harley’s solution was based on offering a wide variety of customized options with standardized key components (Grant, 647). Harley had low volume productions which impose higher costs compared to her competitors.