Revving Up for Relief: Harley-Davidson at the ITC (Sequel) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Revving Up for Relief: Harley-Davidson at the ITC (Sequel)
This case is the sequel to HKS815, which discusses the effect import taxes had on Harley-Davidson. Using statistics on "average unit value" of 790cc and larger imports, Harley determined that eh real value of imports had dropped by $883 between 1979 and 1982. As such, a tariff rate of 48% would be necessary to restore import values to their 1979 level. The case continues by documenting the process Harley Davidson underwent to propose and implement a tariff. Through Harley's process, Japanese cycle producers challenged Harley's case for a steep import. Japanese producers negotiated with Harley to find a solution that suits all parties. This case may be used to discuss demand elasticities, tariffs and regulations, and international business. It should be paired with HKS816. This is HKS Case Number 780.1
Swot Analysis of "Revving Up for Relief: Harley-Davidson at the ITC (Sequel)" written by Dorothy Robyn includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Harley Davidson facing as an external strategic factors. Some of the topics covered in Revving Up for Relief: Harley-Davidson at the ITC (Sequel) case study are - Strategic Management Strategies, Economics, Economy, Globalization and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Revving Up for Relief: Harley-Davidson at the ITC (Sequel) casestudy better are - – increasing energy prices, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy,
digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, etc
Introduction to SWOT Analysis of Revving Up for Relief: Harley-Davidson at the ITC (Sequel)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Revving Up for Relief: Harley-Davidson at the ITC (Sequel) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Harley Davidson, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Harley Davidson operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Revving Up for Relief: Harley-Davidson at the ITC (Sequel) can be done for the following purposes –
1. Strategic planning using facts provided in Revving Up for Relief: Harley-Davidson at the ITC (Sequel) case study
2. Improving business portfolio management of Harley Davidson
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Harley Davidson
Strengths Revving Up for Relief: Harley-Davidson at the ITC (Sequel) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Harley Davidson in Revving Up for Relief: Harley-Davidson at the ITC (Sequel) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Harley Davidson in the sector have low bargaining power. Revving Up for Relief: Harley-Davidson at the ITC (Sequel) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Harley Davidson to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Harley Davidson are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Strong track record of project management
– Harley Davidson is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Leadership & Managing People industry
– Revving Up for Relief: Harley-Davidson at the ITC (Sequel) firm has clearly differentiated products in the market place. This has enabled Harley Davidson to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Harley Davidson to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Harley Davidson is present in almost all the verticals within the industry. This has provided firm in Revving Up for Relief: Harley-Davidson at the ITC (Sequel) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Successful track record of launching new products
– Harley Davidson has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Harley Davidson has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Training and development
– Harley Davidson has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Revving Up for Relief: Harley-Davidson at the ITC (Sequel) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High switching costs
– The high switching costs that Harley Davidson has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Operational resilience
– The operational resilience strategy in the Revving Up for Relief: Harley-Davidson at the ITC (Sequel) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Effective Research and Development (R&D)
– Harley Davidson has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Revving Up for Relief: Harley-Davidson at the ITC (Sequel) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Harley Davidson in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Harley Davidson is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Harley Davidson is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Revving Up for Relief: Harley-Davidson at the ITC (Sequel) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Revving Up for Relief: Harley-Davidson at the ITC (Sequel) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Revving Up for Relief: Harley-Davidson at the ITC (Sequel) are -
High cash cycle compare to competitors
Harley Davidson has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Revving Up for Relief: Harley-Davidson at the ITC (Sequel), it seems that the employees of Harley Davidson don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Workers concerns about automation
– As automation is fast increasing in the segment, Harley Davidson needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High operating costs
– Compare to the competitors, firm in the HBR case study Revving Up for Relief: Harley-Davidson at the ITC (Sequel) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Harley Davidson 's lucrative customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Harley Davidson supply chain. Even after few cautionary changes mentioned in the HBR case study - Revving Up for Relief: Harley-Davidson at the ITC (Sequel), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Harley Davidson vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Revving Up for Relief: Harley-Davidson at the ITC (Sequel), is just above the industry average. Harley Davidson needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Aligning sales with marketing
– It come across in the case study Revving Up for Relief: Harley-Davidson at the ITC (Sequel) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Revving Up for Relief: Harley-Davidson at the ITC (Sequel) can leverage the sales team experience to cultivate customer relationships as Harley Davidson is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Revving Up for Relief: Harley-Davidson at the ITC (Sequel) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Harley Davidson has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Revving Up for Relief: Harley-Davidson at the ITC (Sequel), in the dynamic environment Harley Davidson has struggled to respond to the nimble upstart competition. Harley Davidson has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Harley Davidson, firm in the HBR case study Revving Up for Relief: Harley-Davidson at the ITC (Sequel) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Harley Davidson has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities Revving Up for Relief: Harley-Davidson at the ITC (Sequel) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Revving Up for Relief: Harley-Davidson at the ITC (Sequel) are -
Developing new processes and practices
– Harley Davidson can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Harley Davidson can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Harley Davidson to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Low interest rates
– Even though inflation is raising its head in most developed economies, Harley Davidson can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Harley Davidson in the consumer business. Now Harley Davidson can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Harley Davidson can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Revving Up for Relief: Harley-Davidson at the ITC (Sequel), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Harley Davidson can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Harley Davidson can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Harley Davidson to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Harley Davidson to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Harley Davidson can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Harley Davidson can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Harley Davidson in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Buying journey improvements
– Harley Davidson can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Revving Up for Relief: Harley-Davidson at the ITC (Sequel) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Creating value in data economy
– The success of analytics program of Harley Davidson has opened avenues for new revenue streams for the organization in the industry. This can help Harley Davidson to build a more holistic ecosystem as suggested in the Revving Up for Relief: Harley-Davidson at the ITC (Sequel) case study. Harley Davidson can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Revving Up for Relief: Harley-Davidson at the ITC (Sequel) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Revving Up for Relief: Harley-Davidson at the ITC (Sequel) are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Harley Davidson can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Revving Up for Relief: Harley-Davidson at the ITC (Sequel) .
Environmental challenges
– Harley Davidson needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Harley Davidson can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Technology acceleration in Forth Industrial Revolution
– Harley Davidson has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Harley Davidson needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Regulatory challenges
– Harley Davidson needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
Increasing wage structure of Harley Davidson
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Harley Davidson.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Harley Davidson in the Leadership & Managing People sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Harley Davidson with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Harley Davidson business can come under increasing regulations regarding data privacy, data security, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Harley Davidson will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Harley Davidson needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Harley Davidson.
Shortening product life cycle
– it is one of the major threat that Harley Davidson is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Revving Up for Relief: Harley-Davidson at the ITC (Sequel) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Revving Up for Relief: Harley-Davidson at the ITC (Sequel) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Revving Up for Relief: Harley-Davidson at the ITC (Sequel) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Revving Up for Relief: Harley-Davidson at the ITC (Sequel) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Revving Up for Relief: Harley-Davidson at the ITC (Sequel) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Harley Davidson needs to make to build a sustainable competitive advantage.
