Harley Davidson Case

Case Harley Davidson

Try to identify how the company pictured in the case creates value?

This company focuses in mature people with upper income, is market is people between 35 and 54 with amedian household income of approximately $87,000. So they try to make a life style with this product, and the way they are doing this is by giving the costumer what they are expecting, from thedistribution, that includes the pre and after sales service; also they added value with new services for customers like test ride facilities, rider instruction classes and motorcycle rental assistancefor customizing their bikes.

Look at all possible sources and drivers of value creation and try to link them to value created.

The acquisition of Buell has a good opportunity to expand theirmarket; by adding this new line it increased the value of the company, this is because the costumers of the Buell brand will continue with the same good expectations as before, because they alreadyknew this brand.
Also the service that they have been offering during this years keeps the customers loyalty and this adds value to the company and it’s products.

Are the value creation scheme ofthe company easy to copy? Why ?

In terms of quality of production or service I believe it is easy to copy and that the competition of this brand is already doing it. But when we talk about thelifestyle that the consumer is receiving when he acquires a Harley Davidson, I think is not that simple for the completion to do the same, because they already made a differentiation in the motor cycleindustry, this by offering the customers financial services, general merchandise, parts and accessories, things that the competition can also offer but with the risk of not been innovators.

Whatcan the company possibly do to sustain value creation and appropriation in the long run ? (protection against competition and against the increasing bargaining power of suppliers, distributors and...