Harley Davidson Inc is an America based motorcycle manufacturer established in 1903. The company is based in Milwaukee, Wisconsin. It was one of the motorcycle manufacturer who survive the depression. Harley Davidson has various ownership and subsidiary arrangements and survived in product quality and poor economic health. HD believes in fulfilling the dreams of the personal freedom. It brings customers, dealers, employees, enthusiasts and suppliers together. Harley Davidson sells and manufactures custom, touring and cruiser motorcycles which feature leading-edge styling, distinctive sound, innovative design, and also superior quality with ability of personalization (Harley Davidson, 2020).
VRIO analysis of Harley Davidson
VRIO framework is an analytical tool which is used for assessing the capabilities and resources of the company. This framework enables the company to achieve sustained competitive advantage for strengthening the position in industry. Here is the detailed VRIO analysis of Harley Davidson.
Value
This is the first component of the VRIO analysis which focuses on valuable resources of the company. The resources and capabilities of the company should be valuable. The valuable resources help the company in increasing efficiency and effectiveness to great level. Harley Davidson capabilities and resources are valuable because of lifestyle element. It manufactures the motorcycles according to the culture and lifestyle of the customers which are not easy to replicate. Its strategies to attract the consumers and survive in the recession times are valuable. The company is successful in having loyal customer base and it connects to them through events, charities etc. the brand image is one of the valuable resource for the company (Duncan, 2016).
Rarity
The resources of the company should be rare. The rarity of the resources and capabilities help the company in achieving efficiency and proper implementation of strategies. Company will e able to strengthen its position by availing new opportunities and mitigate the threats. The manufacturing of motorcycle by Harley Davidson is not rare, but its strategies, brand name, image, and quality is rare. Harley Davidson is a big name because of its customization service and product quality. It provides the best experience to its consumers. It provides the custom service consultancy to users to personalize the bike’s features. Its dealership networking is also very valuable and rare which helps it to grow even in tough times (Hamid, 2012).
Imitability
This component focuses on the company’s resources to be difficult to imitate by the competitors. If the resources will be easily replicate, every company will use it in same manner for its own benefits. The resources and capabilities of the company should be either costly or hard to find the substitute for. Harley Davidson has ambiguous position in the industry. The industry position is hard to imitate by the rivals as customers, suppliers, and employees are willingly participating in operation of the company. The vast product range, service range, and other arrangements of the company are costly to imitate by the rivals. Financially, the company is strong, and performance is getting better every day (Moghadasi, 2018).
Organization
This is the fourth component of the VRIO framework. If the company is able to achieve all four components of the VRIO model, it will achieve sustained competitive advantage which helps its in maintaining the strong position in the industry. Resources are required to be organized and managed properly. Harley Davidson is an organized and well-managed company with all the define organizational structure, hierarchies, and culture. The company provide a good working environment to employees to increase efficiency and performance. The operations, inventory management and supply chain networks are organized very well which gives it an edge over others (Duncan, 2016).
Conclusion
Harley Davidson is a motorcycle manufacturer and seller. It is one of the biggest company of America. The company has successfully achieved sustained competitive advantage over a period of time and improved its efficiency and performance in the industry.
| Resources/Capabilities | V | R | I | O | |
| Supply Chain | ✓ | ✓ | ✓ | Competitive advantage | |
| Inventory management | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Brand Equity | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Marketing | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Product quality | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Product range | ✓ | ✓ | ✓ | Sustainable competitive advantage |
References
Duncan, W. 2016. Harley Davidson, Case analysis. [Online], Available at: https://www.slideshare.net/WilliamDuncan13/harleydavidson-case-analysis?next_slideshow=1, [Accessed on: 13th May, 2020].
Hamid, M. 2012. Harley Davidson, Strategic Analysis. [Online], Available at: https://www.slideshare.net/MahmoudMHamid/harley-davidson-strategic-analysis, [Accessed on: 13th May, 2020].
Harley Davidson, 2020. About us- our company. [Online], Available at: https://www.harley-davidson.com/ac/en/about-us/company.html, [Accessed on: 13th May, 2020].
Moghadasi, M. 2018. Strategic Analysis- A case study of Harley Davidson. [Online], Available at: https://www.researchgate.net/publication/333893498_Strategic_Analysis_A_Case_Study_of_HARLEY-DAVIDSON, [Accessed on: 13th May, 2020].