Harley Davidson's value chain

Value chain

The company is a partial order-producing company. They have the most common models in stock. The rest is being produced after customized orders.

We have chosen to conduct an analysis of Harley Davidson’s value chain because the model is good at elucidating what the company does that adds value to both customers, suppliers and employees. The model can elucidate what the company does to stand out from the rest. Furthermore, it can create an overview of the company’s structure and working method.

Support processes

Company infrastructure

Harley Davidson is kind of a family-owned company. It was founded by three brothers, the Davidson brothers, and one more person, Bill Harley. The headquarters is located near the shed where it all started in Milwaukee. The companies’ focus is on the motorcycle markets in developed countries, especially the United States.

They have a structure divided into function-based groups. The main groups in Harley Davidson’s organizational structure are:

• CEO’s office
• Communications
• Human Resources
• Harley Davidson Foundation
• Global Demand
• Financial Services
• General Counsel
• Finance
• Motor company product & operations

Harley Davidson uses centralization in its organizational structure. They have a central command system from where they control everything. The main control base for the global business is the headquarters. This type of structure guarantees direct and immediate control. 

Harley Davidson support national organizations, which are dedicated to promoting diversity in the workplace. For example:

-          Catalyst

-          National Society of Black Engineers

-          Society of Women Engineers

-          National Black MBA

-          National Society of Hispanic

Human Resource Management

Harley Davidson has 6400 employees worldwide.  

Harley Davidson compares themselves to steel. Steel is strong because it is made from a combination of elements like iron, carbon and nickel. They think they are strong because their employees come from many different backgrounds and bring ideas, perspectives and experiences that are unbreakable. The culture in the company is providing opportunities for professional growth and leadership development.

“We demonstrate behaviours throughout our organization that exemplify integrity, accountability, diversity, teamwork and creativity. We also recognize that great companies require great leaders to ensure a sustainable future and strive to build leadership at every level of the company”.

They are trying to train their employees to actively cultivate productive relationships with diverse business - so results can happen. Harley Davidson has a business development program that provides scholarships to minority and female executives seeking to enhance their business management expertise. The Scholarship recipients attend intensive educational programs conducted at some of the nation’s most reputable institutions. The programs combine business theory along with practical application and offer opportunities to learn from entrepreneurs and educators.   

Technology Development

Most of the motorcycles and stuff for them are being made in York, Pennsylvania. Otherwise they produce some stuff outside the US in among other things in India. Harley Davidson owns a product development center in Wauwatosa, Wisconsin. Functions such as new product, development, testing, styling and developmental purchasing for Harley motorcycles takes place here.

 Primary Business Processes

Inbound logistics

Harley Davidson has a big diversity of suppliers. They are looking for partners who can make innovative solutions.

“Supplier Diversity is a key aspect of Harley-Davidson’s business strategy. By engaging diverse suppliers, we are able to create a more competitive supply base as well as stimulate economic development." - Michelle Kumbier, Senior Vice President, Motorcycle Operations.

Operations

The company has 36 different motorcycle models. Furthermore, you have the opportunity to customize your own bike. You can both customize some parts of your bike or you can make a whole new bike, original and unique, for yourself.

Outbound logistics

Harley Davidson has nearly 1,435 dealerships globally. The majority of these dealerships are located in the US, Europe and Canada.

Marketing and sales

Harley Davidson makes a lot of events for both their existing and potential customers. They are a big sponsor within the motorcycle world. 

Service  

Before you buy a Harley Davidson bike, you are allowed to try it. As a special thing, Harley Davidson offers courses where you can learn to ride. They offer two different courses; One for new riders and one for skilled riders. If you don’t want to buy a Harley-Motor cycle but want to try it or you just haven’t enough money for a bike, you can rent a bike. It could be a once in a lifetime experience. If you want to buy a Harley motorcycle anyway, the company offer loans and the opportunity to pay in instalments. Now, that we are already down that ball game, we have to mention the “speed dating”. Here you get the opportunity to get a demo ride on different motorcycles. It is a good way to try several different Harley-Davidson motorcycles and find the perfect match.

When you have found the perfect match, you want to take extra good care of your new motorcycles. Therefore, Harley Davidson has repair shops specialized in accurate your model of motorcycle. In addition to that, it is possible to get an insurance for your bike. As any other company, Harley Davidson offer customer service so if you got any problems, you can always get into contact with them. As extra features, Harley Davidson offer a ride planner app, road trip tips, an overview of motorcycles law divided in states and other things like a special GSP and radio system.

 Conclusion

Harley-Davidson differs from their competitors at especially service and technology development/operations. They have a great service and offer a wide range of extra features, which adds value to their customers. Besides that, they focus a lot on product development. They are also adding value to their company by having a strong structure in the company and a strong human resource management. They try to add value to their employees by giving them opportunities for professional growth and leadership development to keep them motivated. Furthermore, they focus a lot on having partnerships with diverse business. Harley-Davidson is weakest in marketing and sales. They focus a lot on their already existing customers and not as much on new potential customers.