Harley Davidson Core Competencies

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According to Meyer (2017), a third component of Harley-Davidson’s intensive growth strategy is market development, growing by establishing new operations in more countries by increasing its supplier network to support global expansion and growth. The need to expand globally is fueled by the company’s financial situation. After peaking with $6.2 billion revenue in 2006, it declined nearly 30 percent from 2007 and 2009 and was highly leveraged at debt-to-equity of 1.6. The main concern is increase the operating margin to 25 percent (up from 16 percent) by controlling cost. One way to reduce the fixed cost is to increase sales.

Harley-Davidson’s International Growth
Internationally, Harvey-Davidson operates a regional headquarters in Oxford, England, which manages the EMEA region consisting of European, the Middle Eastern and African countries. Another headquarters in Singapore manages the Asia Pacific regions consisting of China, India, Australia and Japan, while the rest of Asia Pacific is managed through the U.S. operations (Hitt, Ireland, & Hoshisson, 2015). The company expands into India and China, both countries with large motorcycle ownership market and income growth, with aim to reach a goal of 40 percent of revenue from internal sales from an existing 32 percent.
To globalize effectively, it needs to adapt to local customs and
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Its brand equity and loyalty are not easier imitable by competitors and lead to sustainable competitive advantage for the U.S. domestic market in face of strong competitive rivalry from challenges from overseas. However, such competitive advantage is diminished when the company expands globally. The brand message needs to be translated to adapt to local culture, and the company could benefit from having new director on the board who have strong experience in international joint ventures or
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