MAR023 6 Thriving In A Competitive Global Context: Harley-Davidson Assessment 2 Answer

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Question :

Unit title & code
MAR023-6 Thriving in a Competitive Global Context
Assignment number and title
Assessment 2: Written Report
Assessment type
Individual Written Report
Weighting of assessment
70%
Size or length of assessment
3,500 words
Unit learning outcomes
1. Demonstrate knowledge and understanding of the changing nature of the global business environment, buyer behaviour in a global context and the factors which influence the implementation of an organisation’s competitive business strategy in a global context

2. Demonstrate skills and abilities in collecting and analysing appropriate information, applying a range of strategic business and financial tools and techniques available, to plan and evaluate global business and e-business operations.

What am I required to do in this assignment?

Your Task:

Imagine you are a consultant you have been tasked with the following to:
  1. To conduct a PESTEL and Porter’s 5 Forces analyses to identify the key forces of change in the Global Motorcycle industry.
  2. Analyse and evaluate Harley-Davidson (H-D)’s current competitive and development strategies. In your judgement are they appropriate for the environment and forces identified in your PESTEL and 5-Forces analysis.


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Answer :

Thriving in a Competitive Global Context

Introduction

The project is going to describe the business analysis of an organization. The project describes the systematic steps of gaining prosperity and brand success. The brand name Harley-Davidson is used as an organization. Harley-Davidson is one of the reputed motorbike companies in the world. This company has the production output as the sum of 241,498. It has the gross annual revenue of 5.647 US Dollar (Harley-davidson, 2020). The company has nearly 5.800 staff. The company was founded in the year 1903. William S. Harley and Author Davidson are the founders of the Harley-Davidson company. The present Chief Executive Officer (CEO) is Keith Wendell. It is a globally famous motorbike company. The PESTLE and Porter five forces analysis is conducted to understand the current market of the motorcycles. The evaluation of the current competitive and development strategies is also shown. The strength and weakness of Harley-Davidson are also discussed. The recommendations on the basis of the advantages to the marketing race of the worldly scenario are also explained in this project.

PESTLE analysis

The PESTLE analysis is the structure through which the basic factors of the company are evaluated. These basic factors are the influencing factors of the company. The outer analysis of the company is conducted through this analysis (Düerkop and Huth, 2017). The five factors of the PESTLE are described below:

Political: The political factors of the motorbike industry are based on safety regulations. Riding the motorbike is full of challenges. As a result, the government across the world has decided to enforce some strict laws which provide the precautions to the riders of the bike worldly. The National Safety Council (NSC) is drafting some rules for the safety of the bike riders. The enforcement of the wearing of proper bike gears is conducted. The survey of 2017 stated that 91% of riders fall in the pry of motor accidents and 28% of them are involved in drunken riding. The emission policies from all over the world are moving towards the efficiency of the proper use of fuels (NSC, 2020). The government authorities from many nations have decided to frame some penalties for the reduction of the excess emissions from the motorbike. The inspection of the bike engines is also being tested for the check of the emission. The Harley Davidson in the recent period has to follow the global safety and emission regulations as the key guide to the bike riders and it will increase its brand fame.

Economical: The global economic condition is driving towards the increment of the more living income of the individuals. The recent study based on 2019 has stated that global motorbike sales have decreased by nearly to 1.6 million units (Motorcyclesdata, 2020). The market of the motorbike industries in developing nations like India, Pakistan and the Philippines are rising at 18.5 million, 1.67 million and 1.8 million respectively. The motorbike industry in Europe has declined to the unit of 60.1 million. China has made a recovery in recent years. Covid-19 has created an economic crisis all over the world. This causes a sharp decline in the motorbike industry. As the nations are conducting lockdowns the number of bike users is decreasing. It has been predicted that this virus condition can lead to a crisis in the motorbike industry. The world can lose over 10 million units of the motorbikes. These could result in a decline in the sales of Harley Davidson globally. As a result, the economic conditions are not up to the mark.

Sociological: The popularity of riding motorbike is rapidly growing. It has become a status of sophistication for many people all over the world. The world is also looking towards women motorbike riding. This will increase the condition of equality all over the world. The report of 2014 has stated that the women represented 14% of the motorbike owners (Duprey, 2020). There has been a rise in women riding by 4% from the year 2010. It has been found that 72% of motorbike riders graduate. From them, 71% are employed. 15% is the retired riders. This helps to recognise that the Harley-Davidson will get more customers to form the world basis as the potential motorbike riders.

Technological: The recent globe is looking at the conservation of tradition and fossil fuels. They also want to reduce air pollution caused due to the burning of fossil fuels. Now the world is looking at the new technology of the high-performance electric motorbike. The reports from 2010 to 20124 have considered that the 28,123 units of electric motorbike will be produced (Businesswire, 2020). Global marketing will be based on technological development among the different motorbike companies. The technological assistants are also required so the unified performance in the designing of the electric motorbike is required. The electric motorbike is the technological innovation which may lead to disruption to the fossil fuel system. The adoption of this mentioned technology will help Harley-Davison to gain advantages in the global marketing scenario.

Legal: The legal condition is based on global copyright policies and rules. The conservation of the trademark and patent laws helps the brand image of the company of the motorbike to sustain and prosper. The threats from the Chinese company are reflected as they are stealing the technological innovations from the western nations like the US, UK and other European nations. The rules of speed control are essential and it is different in many nations worldly. The global speed limit is 30 to 90 kilometres per hour based on the nation's traffic rules. The helmet rules are to be followed by the United Nations Economic Commission. The legal following of the world is also considering the pillion passenger rules of allowing nearly 8 years old people to use the bike (Qld, 2020). The rule also says that the feet of the individual should reach the ground during motorbike riding. This will help the Harley-Davidson to guide its members and customers with proper perseverance and sustainability.

Environmental: In this present moment the world is concerned about the recent degradation of the global environment. The rise in temperature and sea levels are creating some problems. Air pollution is one of the major causes of environmental degradation (Brewer, 2019). The many motorbikes and other automobile companies are looking at using electric fuels to save the environment. This will also reduce the carbon emission. Many companies are also utilising it in developing solar bikes and cars for the conservation of the environment. The motorbike using traditional fuels may use more advanced catalytic converters to reduce the emission of the chemicals and other harmful gases. The company named Harley-Davidson can use environmental conservation rules and renewable resources as the fuel to get the best possible competitive advantages.

Porter’s five forces

Porter's five forces analysis is the division of the forces which affects the business of a company. Michel Porter has framed this analysis to understand the competitive scenario. This tool of analysis was invented by Michel Porter in the year of 1979 (Huang, 2019). It is also considered as the tool of one of the most regarded marketing analyses. The five forces of Michel Porter are described below:

Threats to new entrants: The threats from the new brands are giving many challenges to the existing global motorbike companies. The global laws and licensing rules are acting as the barrier for the new motorbike company. The management and investment are one of the essential requirements of the new companies to survive and it needs time and experiences to survive and execute. The new companies also have to process some proper financial management to reduce and balance the processing expenditures. The company named Harley-Davidson has a global reputation in the management of motorbike production.  As a result, the competitive advantages are high for Harley-Davidson. It can be concluded that the threats from the new entrants are limited and minimal. This will also help Harley-Davidson to expand its business globally. 

Threats of alternatives: The threats from the alternatives have come from the production of small cars. This created pressures in motorbike demands (Omsa et al., 2017).  Many people all over the world are also using bicycles as the substitutes of the motorbike as the environmental conservation motive. The Harley-Davidson has to innovative the production of the electric motorbikes to gain advantages in the marketing competition. It also has to increase the features of its products and prices have to be regulated on the basis of the substitute products from other brands. Harley-Davidson has to produce some fuel-efficient motorbike to gain brand prosperity in the world.

Rivalry among the competition: The global motorcycle industry is in a state of aggressive competition. Companies like Ducati, Yamaha, etc are the potential competitors of the Harley-Davidson globally. The Harley- Davidson has to lower and fix its prices of the bike and bike products to survive in the marketing competition. The new innovation in the facilities through technology, customer facilities and skilled employee can also help the Harley-Davidson to withstand the competitive rivalry.

Bargaining power of suppliers: The bargaining power of the global motorbike industry suppliers are limited and it is relied on for availability. The suppliers are circulated among the many nations of the world. The company named Harley-Davidson has its supplier bases in the US, UK and other European nations. The Chinese and Japanese companies are also acting as the potential suppliers of the Harley-Davidson. The bargaining power of the suppliers is also based on regional elements like geography and demography. 

Bargaining power of buyers: The bargaining power depends on the various factors which consist of the price, marketing dimension and marketing requirements. The bargaining potential of the buyers is relatively high. Motorbike industry has become aggressive in the race of global marketing. The potential of the buyers is depending on the choices of the customers (Omsa et al., 2017). The quality of the motorbike is essential to fix the customer of a specific motorbike company. The world is now looking at the innovation of the electric motorbikes. In the 21st century, Harley-Davidson has to use the demands of the customers to increase the quality of the motorbikes and its parts.

Evaluation of the current competitive and development strategies

The global motorbike marketing industry is under high competition. The PESTLE and Porter's five forces analysis helps to understand the formulation of the strategies for the resistance in the competitive race of the world. Harley-Davidson is now facing the issues related to issues of the manufacturing problems. The companies like Honda have suppressed the production numbers and it is going to beat the production of the Harley-Davidson. The prices of motorbikes have to be fixed according to the power of the customers which is high. The reduction and moderation of the prices will help the company to gain a lot of customers. The manufacturing bases of Harley-Davidson have been increased all over the world to gain brand success. The power of the suppliers is high so Harley-Davidson has to innovative the Enterprise Resource Planning (ERP) in its management process (Harley-davidson, 2020). This will increase the flexibility and mobility of the company. The competitive rivalry is high as the companies like Suzuki, Yamaha and Kawasaki are producing advanced technological features in their motorbike products. The Harley-Davidson has top develop new features like the retro-styled and V-twin cruiser to increase its competitive advantages. The modern world is looking at the reduction of environmental degradation. Hence the Harley-Davidson has to invest in the innovation of the electric motorbike to in the advantages from the technological and environmental factors. 

The Harley-Davidson has to force some regulations for potential customers to reduce the issues related to the disobedience of the legal and safety rules during bike riding. The company can empower customers by providing discounts and subscription in the facilitation of the bike helmets and bike kits. The company can also produce the rules of women bike riding empowerment all over the world. The regulations of the bike rider can be based on the age and height to reduce global bike accidents. The formulation of the new guidelines on the basis of customer safety has to be enforced by the mentioned company. The suppliers and the employees of the companies are also required to be properly trained in the new innovative technologies of the current motorbike industry. The company also needs some collaborations and recruitments of the improvement of its business dynamics. The advertisement of the new features like the initiation of electric motorbikes through the help of social media can help the company to gain the attraction of many diversified customers from all over the world. Harley-Davidson has to design its management set up to understand current marketing demands. The recent global incident of the Covid-19 has created a great loss in the bike and automobile industry. As a result, the Harley-Davidson has to wait for the reformation of the management and innovations until the end of the Covid-19 pandemic. The fuel reduction and innovative catalytic converters can be used by the company to reduce environmental issues. This will assist the company to gain prosperity in the motorbike business. 

The management system of the Harley-Davidson company has also devoted itself to the reformation of the production methods. This was conducted in the year 2008. The professionals have taken some assistance from Japanese automobile plants like Toyota for the development of knowledge and innovations. The management of the Harley-Davidson has also formulated the application of the Just in Time (JIT) system (Harley-davidson, 2020). This has increased the mobility of the company. The management of the company has also framed the materials as Needed (MAN) to increase its production and supplies. These possible managerial systems have helped the company to gain sufficient prosperity. The Harley Owners Group (HOG) was established in the year 1983. This body was involved in charity and social events. The employees and the other staff of the Harley-Davidson supported the activities of the HOG. This body is involved in the process of rallies and adventure. They also provide loyalty to the other employees and motorbike riders. They also conducted reunions and conferences for brand enhancement. As a consequence, this helped the Harley Company to gain a large number of customers.

The mentioned company has declared the growth plan and it would be going to represent 4 million riders across the United States of America from the year 2027. The report of 2017 has stated that the number of motorbike riders is nearly 3 million. As a result, a rise of 1 million is declared by the company in the coming 10 years. The company has the strength as the good money power which can help to attain the increment of the riders (Wallace, 2020). The mentioned company has the varieties in its products as its strength. The company has also initiated to generate a revenue of 1 billion US Dollar by the year 2022. The company is also looking at deeper customer insights for the development of the new features. The strength of the company is also based on its brand value which can help to attract large customer bases. The financial potential of Harley-Davidson is the proper strength. Hence the strategy of the significant investment is essential. The company has formulated a sum of 450 million US Dollar to be raised to 550 million US Dollar as the processing investment by the year 2022 (Harley-davidson, 2020).

The mentioned company is also looking for global circulation to reduce its competitive rivalry in the ongoing market. Harley-Davidson has developed some strategies to invest half of its yearly revenue in the process of global expansion. As the strength of the money power of the mentioned company is high it can be beneficial for the brand expansion. The growth target has been diversified with the electric-powered motorbikes. These motorbikes are also segmented for the kids and other individuals. The company is also looking for the launching of the electric live wire model to increase its brand value. The innovation in the variety of the product will help to achieve competitive advantages. The designing of a proper chopper biking culture has been formulated by the mentioned company. This would increase the market enhancement and product awareness among the respective customers. The chopper biking system will form as the base of the new customers to attract and it will help the company to gain customers from other brands.

The financial crisis in the year 2008 has created some weakness in the economic conditions of the company. The improvement in business dynamics has also created some issues and resulted in the dark time of the company. The year of 2012 has displayed that the company has gained the success of 16.7% and its net income has increased by 44.3% (Harley-davidson, 2020). This resulted in the restructuring in the year of 2013 and it helped to save money of 310 Million US Dollar (Harley-davidson, 2020). The customers of the company are ranging from only 40 to 50 years of age. This was displayed in the report of the US of 2015. This has to be changed for the creation of more diversified customers.

The weakness of the mentioned company is based on the narrow product mix and it restricts the flow of business to achieve the targets. As the company is looking at the chopper culture the product diversity is decreasing (Pauline-Meyer, 2020). The basis of the Harley-Davidson is based on North America. This resulted in weakness and it has to increase its sales to the other continents. The company has no proper bases at the developing nations. The competitors like the Ducati, Kawasaki and Yamaha are the biggest competitors of the Harley Company. The Product Development Centre (PDC) of the Harley Company could increase the quality of the products to reduce the recall problems which prevents the reputational issues. The manufacturing cost of the company is also high and it also acts as a weakness. Harley-Davidson needs to reduce its operational money by opening a manufacturing factory nearer to the markets and suppliers. Harley-Davidson is also the victim of the Covid-19 and it has to reformulate its business plans to mitigate the losses. 

Recommendations

The recommendations of the Harley-Davidson for the competitive advantages are based on the criteria of the availability of the variety of products, accessing the broader perspective and making strong deals. These will help the company to gain global competitive enhancement and prosperity. The company has to create a portfolio which can have varieties of products. The variation can be based on the price, power sources, riding features and deliveries. The company needs to develop more Cruiser varieties to gain global competitive benefits. It has filtered its products based on the adventure, custom and street models. In order to enter into the developing nations, it has to apply the motorbike products with the facilities of small displacements like the 250cc to 500cc. The fuel conservation idea is also required to sustain the business of the mentioned company. The innovation of electric motorbike can be important. The electrification of the motorbike is also essential for the advancement in the marketing dimension. 

The creation of high customer engagement through access to the retail channel can be beneficial for global competition. Harley-Davidson will develop its market transfer approach to understand the needs of the customers. The advancement of digital and technological capabilities has to be executed. The website of the company is Harley-Davidson.com has to be integrated and reformulated to enhance the dealership of the retail process. According to Alalwan et al. (2017), advancement through social media like Facebook and Twitter can help to gain business advantages in this 21st century. The strategic collaboration with the world's leading e-commerce suppliers can help the company to get potential customers who are new. The new retail formats have to be installed in the rural and urban stores of the company.  This will help the population to get the awareness of the information about the company's product. The stronger deals are required to be properly executed by the Harley-Davidson to build the dealer network. The dealer network of the company is reputed but it has to be advanced for the present marketing scenarios. The dealer network and customer experience can be more strengthened through the performance framework. The Return on the invested capital (ROIC) of the Harley-Davidson has to be improved to increase the earning and profits. Harley-Davidson also needs to make deals with other companies which are local and smaller in dimension to get the proper support and retention to gain access in the global industry. 

Conclusion

The project describes the business environment of the Harley-Davidson company. The PESTLE analysis is conducted to understand the environmental factors of the Harley-Davidson company. Porter’s five forces are used to understand the forces which are affecting the global competition of the Harley-Davidson company. In this project, the overall strategies and development plans are stated. The Strengths and weaknesses of the company are also described to be increased and rectified respectively. At the end of the project, some recommendations are discussed as the outline of the global competitive benefits.


Thriving in a Competitive Global Context

Introduction

The project is going to describe the business analysis of an organization. The project describes the systematic steps of gaining prosperity and brand success. The brand name Harley-Davidson is used as an organization. Harley-Davidson is one of the reputed motorbike companies in the world. This company has the production output as the sum of 241,498. It has the gross annual revenue of 5.647 US Dollar (Harley-davidson, 2020). The company has nearly 5.800 staff. The company was founded in the year 1903. William S. Harley and Author Davidson are the founders of the Harley-Davidson company. The present Chief Executive Officer (CEO) is Keith Wendell. It is a globally famous motorbike company. The PESTLE and Porter five forces analysis is conducted to understand the current market of the motorcycles. The evaluation of the current competitive and development strategies is also shown. The strength and weakness of Harley-Davidson are also discussed. The recommendations on the basis of the advantages to the marketing race of the worldly scenario are also explained in this project.

PESTLE analysis

The PESTLE analysis is the structure through which the basic factors of the company are evaluated. These basic factors are the influencing factors of the company. The outer analysis of the company is conducted through this analysis (Düerkop and Huth, 2017). The five factors of the PESTLE are described below:

Political: The political factors of the motorbike industry are based on safety regulations. Riding the motorbike is full of challenges. As a result, the government across the world has decided to enforce some strict laws which provide the precautions to the riders of the bike worldly. The National Safety Council (NSC) is drafting some rules for the safety of the bike riders. The enforcement of the wearing of proper bike gears is conducted. The survey of 2017 stated that 91% of riders fall in the pry of motor accidents and 28% of them are involved in drunken riding. The emission policies from all over the world are moving towards the efficiency of the proper use of fuels (NSC, 2020). The government authorities from many nations have decided to frame some penalties for the reduction of the excess emissions from the motorbike. The inspection of the bike engines is also being tested for the check of the emission. The Harley Davidson in the recent period has to follow the global safety and emission regulations as the key guide to the bike riders and it will increase its brand fame.

Economical: The global economic condition is driving towards the increment of the more living income of the individuals. The recent study based on 2019 has stated that global motorbike sales have decreased by nearly to 1.6 million units (Motorcyclesdata, 2020). The market of the motorbike industries in developing nations like India, Pakistan and the Philippines are rising at 18.5 million, 1.67 million and 1.8 million respectively. The motorbike industry in Europe has declined to the unit of 60.1 million. China has made a recovery in recent years. Covid-19 has created an economic crisis all over the world. This causes a sharp decline in the motorbike industry. As the nations are conducting lockdowns the number of bike users is decreasing. It has been predicted that this virus condition can lead to a crisis in the motorbike industry. The world can lose over 10 million units of the motorbikes. These could result in a decline in the sales of Harley Davidson globally. As a result, the economic conditions are not up to the mark.

Sociological: The popularity of riding motorbike is rapidly growing. It has become a status of sophistication for many people all over the world. The world is also looking towards women motorbike riding. This will increase the condition of equality all over the world. The report of 2014 has stated that the women represented 14% of the motorbike owners (Duprey, 2020). There has been a rise in women riding by 4% from the year 2010. It has been found that 72% of motorbike riders graduate. From them, 71% are employed. 15% is the retired riders. This helps to recognise that the Harley-Davidson will get more customers to form the world basis as the potential motorbike riders.

Technological: The recent globe is looking at the conservation of tradition and fossil fuels. They also want to reduce air pollution caused due to the burning of fossil fuels. Now the world is looking at the new technology of the high-performance electric motorbike. The reports from 2010 to 20124 have considered that the 28,123 units of electric motorbike will be produced (Businesswire, 2020). Global marketing will be based on technological development among the different motorbike companies. The technological assistants are also required so the unified performance in the designing of the electric motorbike is required. The electric motorbike is the technological innovation which may lead to disruption to the fossil fuel system. The adoption of this mentioned technology will help Harley-Davison to gain advantages in the global marketing scenario.

Legal: The legal condition is based on global copyright policies and rules. The conservation of the trademark and patent laws helps the brand image of the company of the motorbike to sustain and prosper. The threats from the Chinese company are reflected as they are stealing the technological innovations from the western nations like the US, UK and other European nations. The rules of speed control are essential and it is different in many nations worldly. The global speed limit is 30 to 90 kilometres per hour based on the nation's traffic rules. The helmet rules are to be followed by the United Nations Economic Commission. The legal following of the world is also considering the pillion passenger rules of allowing nearly 8 years old people to use the bike (Qld, 2020). The rule also says that the feet of the individual should reach the ground during motorbike riding. This will help the Harley-Davidson to guide its members and customers with proper perseverance and sustainability.

Environmental: In this present moment the world is concerned about the recent degradation of the global environment. The rise in temperature and sea levels are creating some problems. Air pollution is one of the major causes of environmental degradation (Brewer, 2019). The many motorbikes and other automobile companies are looking at using electric fuels to save the environment. This will also reduce the carbon emission. Many companies are also utilising it in developing solar bikes and cars for the conservation of the environment. The motorbike using traditional fuels may use more advanced catalytic converters to reduce the emission of the chemicals and other harmful gases. The company named Harley-Davidson can use environmental conservation rules and renewable resources as the fuel to get the best possible competitive advantages.

Porter’s five forces

Porter's five forces analysis is the division of the forces which affects the business of a company. Michel Porter has framed this analysis to understand the competitive scenario. This tool of analysis was invented by Michel Porter in the year of 1979 (Huang, 2019). It is also considered as the tool of one of the most regarded marketing analyses. The five forces of Michel Porter are described below:

Threats to new entrants: The threats from the new brands are giving many challenges to the existing global motorbike companies. The global laws and licensing rules are acting as the barrier for the new motorbike company. The management and investment are one of the essential requirements of the new companies to survive and it needs time and experiences to survive and execute. The new companies also have to process some proper financial management to reduce and balance the processing expenditures. The company named Harley-Davidson has a global reputation in the management of motorbike production.  As a result, the competitive advantages are high for Harley-Davidson. It can be concluded that the threats from the new entrants are limited and minimal. This will also help Harley-Davidson to expand its business globally. 

Threats of alternatives: The threats from the alternatives have come from the production of small cars. This created pressures in motorbike demands (Omsa et al., 2017).  Many people all over the world are also using bicycles as the substitutes of the motorbike as the environmental conservation motive. The Harley-Davidson has to innovative the production of the electric motorbikes to gain advantages in the marketing competition. It also has to increase the features of its products and prices have to be regulated on the basis of the substitute products from other brands. Harley-Davidson has to produce some fuel-efficient motorbike to gain brand prosperity in the world.

Rivalry among the competition: The global motorcycle industry is in a state of aggressive competition. Companies like Ducati, Yamaha, etc are the potential competitors of the Harley-Davidson globally. The Harley- Davidson has to lower and fix its prices of the bike and bike products to survive in the marketing competition. The new innovation in the facilities through technology, customer facilities and skilled employee can also help the Harley-Davidson to withstand the competitive rivalry.

Bargaining power of suppliers: The bargaining power of the global motorbike industry suppliers are limited and it is relied on for availability. The suppliers are circulated among the many nations of the world. The company named Harley-Davidson has its supplier bases in the US, UK and other European nations. The Chinese and Japanese companies are also acting as the potential suppliers of the Harley-Davidson. The bargaining power of the suppliers is also based on regional elements like geography and demography. 

Bargaining power of buyers: The bargaining power depends on the various factors which consist of the price, marketing dimension and marketing requirements. The bargaining potential of the buyers is relatively high. Motorbike industry has become aggressive in the race of global marketing. The potential of the buyers is depending on the choices of the customers (Omsa et al., 2017). The quality of the motorbike is essential to fix the customer of a specific motorbike company. The world is now looking at the innovation of the electric motorbikes. In the 21st century, Harley-Davidson has to use the demands of the customers to increase the quality of the motorbikes and its parts.

Evaluation of the current competitive and development strategies

The global motorbike marketing industry is under high competition. The PESTLE and Porter's five forces analysis helps to understand the formulation of the strategies for the resistance in the competitive race of the world. Harley-Davidson is now facing the issues related to issues of the manufacturing problems. The companies like Honda have suppressed the production numbers and it is going to beat the production of the Harley-Davidson. The prices of motorbikes have to be fixed according to the power of the customers which is high. The reduction and moderation of the prices will help the company to gain a lot of customers. The manufacturing bases of Harley-Davidson have been increased all over the world to gain brand success. The power of the suppliers is high so Harley-Davidson has to innovative the Enterprise Resource Planning (ERP) in its management process (Harley-davidson, 2020). This will increase the flexibility and mobility of the company. The competitive rivalry is high as the companies like Suzuki, Yamaha and Kawasaki are producing advanced technological features in their motorbike products. The Harley-Davidson has top develop new features like the retro-styled and V-twin cruiser to increase its competitive advantages. The modern world is looking at the reduction of environmental degradation. Hence the Harley-Davidson has to invest in the innovation of the electric motorbike to in the advantages from the technological and environmental factors. 

The Harley-Davidson has to force some regulations for potential customers to reduce the issues related to the disobedience of the legal and safety rules during bike riding. The company can empower customers by providing discounts and subscription in the facilitation of the bike helmets and bike kits. The company can also produce the rules of women bike riding empowerment all over the world. The regulations of the bike rider can be based on the age and height to reduce global bike accidents. The formulation of the new guidelines on the basis of customer safety has to be enforced by the mentioned company. The suppliers and the employees of the companies are also required to be properly trained in the new innovative technologies of the current motorbike industry. The company also needs some collaborations and recruitments of the improvement of its business dynamics. The advertisement of the new features like the initiation of electric motorbikes through the help of social media can help the company to gain the attraction of many diversified customers from all over the world. Harley-Davidson has to design its management set up to understand current marketing demands. The recent global incident of the Covid-19 has created a great loss in the bike and automobile industry. As a result, the Harley-Davidson has to wait for the reformation of the management and innovations until the end of the Covid-19 pandemic. The fuel reduction and innovative catalytic converters can be used by the company to reduce environmental issues. This will assist the company to gain prosperity in the motorbike business. 

The management system of the Harley-Davidson company has also devoted itself to the reformation of the production methods. This was conducted in the year 2008. The professionals have taken some assistance from Japanese automobile plants like Toyota for the development of knowledge and innovations. The management of the Harley-Davidson has also formulated the application of the Just in Time (JIT) system (Harley-davidson, 2020). This has increased the mobility of the company. The management of the company has also framed the materials as Needed (MAN) to increase its production and supplies. These possible managerial systems have helped the company to gain sufficient prosperity. The Harley Owners Group (HOG) was established in the year 1983. This body was involved in charity and social events. The employees and the other staff of the Harley-Davidson supported the activities of the HOG. This body is involved in the process of rallies and adventure. They also provide loyalty to the other employees and motorbike riders. They also conducted reunions and conferences for brand enhancement. As a consequence, this helped the Harley Company to gain a large number of customers.

The mentioned company has declared the growth plan and it would be going to represent 4 million riders across the United States of America from the year 2027. The report of 2017 has stated that the number of motorbike riders is nearly 3 million. As a result, a rise of 1 million is declared by the company in the coming 10 years. The company has the strength as the good money power which can help to attain the increment of the riders (Wallace, 2020). The mentioned company has the varieties in its products as its strength. The company has also initiated to generate a revenue of 1 billion US Dollar by the year 2022. The company is also looking at deeper customer insights for the development of the new features. The strength of the company is also based on its brand value which can help to attract large customer bases. The financial potential of Harley-Davidson is the proper strength. Hence the strategy of the significant investment is essential. The company has formulated a sum of 450 million US Dollar to be raised to 550 million US Dollar as the processing investment by the year 2022 (Harley-davidson, 2020).

The mentioned company is also looking for global circulation to reduce its competitive rivalry in the ongoing market. Harley-Davidson has developed some strategies to invest half of its yearly revenue in the process of global expansion. As the strength of the money power of the mentioned company is high it can be beneficial for the brand expansion. The growth target has been diversified with the electric-powered motorbikes. These motorbikes are also segmented for the kids and other individuals. The company is also looking for the launching of the electric live wire model to increase its brand value. The innovation in the variety of the product will help to achieve competitive advantages. The designing of a proper chopper biking culture has been formulated by the mentioned company. This would increase the market enhancement and product awareness among the respective customers. The chopper biking system will form as the base of the new customers to attract and it will help the company to gain customers from other brands.

The financial crisis in the year 2008 has created some weakness in the economic conditions of the company. The improvement in business dynamics has also created some issues and resulted in the dark time of the company. The year of 2012 has displayed that the company has gained the success of 16.7% and its net income has increased by 44.3% (Harley-davidson, 2020). This resulted in the restructuring in the year of 2013 and it helped to save money of 310 Million US Dollar (Harley-davidson, 2020). The customers of the company are ranging from only 40 to 50 years of age. This was displayed in the report of the US of 2015. This has to be changed for the creation of more diversified customers.

The weakness of the mentioned company is based on the narrow product mix and it restricts the flow of business to achieve the targets. As the company is looking at the chopper culture the product diversity is decreasing (Pauline-Meyer, 2020). The basis of the Harley-Davidson is based on North America. This resulted in weakness and it has to increase its sales to the other continents. The company has no proper bases at the developing nations. The competitors like the Ducati, Kawasaki and Yamaha are the biggest competitors of the Harley Company. The Product Development Centre (PDC) of the Harley Company could increase the quality of the products to reduce the recall problems which prevents the reputational issues. The manufacturing cost of the company is also high and it also acts as a weakness. Harley-Davidson needs to reduce its operational money by opening a manufacturing factory nearer to the markets and suppliers. Harley-Davidson is also the victim of the Covid-19 and it has to reformulate its business plans to mitigate the losses. 

Recommendations

The recommendations of the Harley-Davidson for the competitive advantages are based on the criteria of the availability of the variety of products, accessing the broader perspective and making strong deals. These will help the company to gain global competitive enhancement and prosperity. The company has to create a portfolio which can have varieties of products. The variation can be based on the price, power sources, riding features and deliveries. The company needs to develop more Cruiser varieties to gain global competitive benefits. It has filtered its products based on the adventure, custom and street models. In order to enter into the developing nations, it has to apply the motorbike products with the facilities of small displacements like the 250cc to 500cc. The fuel conservation idea is also required to sustain the business of the mentioned company. The innovation of electric motorbike can be important. The electrification of the motorbike is also essential for the advancement in the marketing dimension. 

The creation of high customer engagement through access to the retail channel can be beneficial for global competition. Harley-Davidson will develop its market transfer approach to understand the needs of the customers. The advancement of digital and technological capabilities has to be executed. The website of the company is Harley-Davidson.com has to be integrated and reformulated to enhance the dealership of the retail process. According to Alalwan et al. (2017), advancement through social media like Facebook and Twitter can help to gain business advantages in this 21st century. The strategic collaboration with the world's leading e-commerce suppliers can help the company to get potential customers who are new. The new retail formats have to be installed in the rural and urban stores of the company.  This will help the population to get the awareness of the information about the company's product. The stronger deals are required to be properly executed by the Harley-Davidson to build the dealer network. The dealer network of the company is reputed but it has to be advanced for the present marketing scenarios. The dealer network and customer experience can be more strengthened through the performance framework. The Return on the invested capital (ROIC) of the Harley-Davidson has to be improved to increase the earning and profits. Harley-Davidson also needs to make deals with other companies which are local and smaller in dimension to get the proper support and retention to gain access in the global industry. 

Conclusion

The project describes the business environment of the Harley-Davidson company. The PESTLE analysis is conducted to understand the environmental factors of the Harley-Davidson company. Porter’s five forces are used to understand the forces which are affecting the global competition of the Harley-Davidson company. In this project, the overall strategies and development plans are stated. The Strengths and weaknesses of the company are also described to be increased and rectified respectively. At the end of the project, some recommendations are discussed as the outline of the global competitive benefits.