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Essay by nguyenduy khai • September 16, 2016 • Essay • 464 Words (2 Pages) • 1,207 Views
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Harley is now facing the problem of diversity in culture and regions. This problem is caused by the strategies that they have sold their products in many countries, such as U.S, Japan, China and Europeans, with the diversity in customer’s preference. Therefore, Harley has to understand carefully about each market to choose a suitable plan, especially about the lifestyle, living condition, and the trend. In details, Harley faces political risks about high import tariffs in Brazils and the restriction on motorcycle usage in China; they also faces commercial risk about the climate change awareness and possible emission cost in almost all their market so that that Harley has to solve by reducing greenhouse gas emitted by their products.
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By expanding abroad, Harley can take the revenue from foreign market while domestic market seems to be down turn. This benefit leads to the balance in the firm’s growth. Another benefit is that Harley can have the opportunity to widespread their brand and become less concentrated on one market. Harley can raise their revenue remarkably when entering potential market like Japan, China, Brazil.
In Brazil, they has reduced the cost of Research and Development, manufacturing, distribution and some certain costs by sourcing plant. Harley has shown to other makers that developing international value chain is a effective way to make the brand become more competitive.
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To compete with rivals from Japan and Europe, Harley focuses on advertising and global branding strategies, and aslo employing local workers. This strategy makes the Harley’s icon become more popular.
In European markets, the strategies of Harley are variable due to the differences in customer’s preference in each country. Harley has taloired motorcycle needs. In Europe, Harley’s top seller is the Performance lines, taking more than 30% of the sales. In addition, Harley has designed a variety of motorbike lines to satisfy the biker’s taste, and a HOG was created to connect Harley owners and strongly widespread the brand .
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In some countries like Taiwan, Japan, U.S and Europeans, new standard are being developed aim at GHG reduction on motorcycle. Most of Harley GHG emission emanate from manufacturing plants. Management is moving to reduce pollution, energy and water usage, as part of an intergrated sustainability strategy.
Addressing climate change by preparing for the transition to a lower- carbon economy. In 2005, they launched a motorcycle recycling program in Japan
These action and its recycling prrgram help align Harley’s actions with stakeholder expectations and strengthen their brand, which is in fact Harley’s competitive advantages.
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