A source of long-term competitive advantage in company operations exists for Harley Davidson. With a well-known brand that draws clients from all around the world, the business manufactures heavy-duty motorcycles. Since there are many potential clients for the brand's products due to its global recognition, its market share is unaffected. The owner is directly liable for all business-related decisions due to the centralized organizational structure. The primary stakeholder in the company, the management, is responsible for the revenues and expenses of the business and makes choices regarding how to run it (Global Products Inc. 2014). The CEO and the vice presidents can make immediate actions regarding the company without needing to consult other people.
The company has diversified its products since 2009 despite dealing mostly with heavy motorcycles. It has included merchandise such as the police sheriff firefighters. With product diversification, the company is able to manage risks that were previously associated with dealing with single product sale, the motorcycle (Young, 2017). The product diversification will attract new customers to the industry, and doing so the company will register increased revenue once their products become known in the market. Besides, the company has well-stipulated goals to ensure that the diversified products they sell find diverse customers for consumption. The company aims to venture into global markets, find new customers, and introduce new motorcycles in the market for higher sales. However, despite the reduction in total revenue to $2.49 billion due to product diversification, the company still made a profit of $70.6 million which if properly managed with the goals of the company will ensure the economic prosperity of the company (Harley-Davidson annual report, 2009).
References
Global Products Inc. (2014). Harley-Davidson licensed products. Retrieved from http://www.gpii.com/brands/harleyDavidson.aspx
Harley-Davidson 2009 annual report. Retrieved from http://media.corporate-ir.net/media_files/IROL/87/87981/HD.pdf
Young, J. (2017). Harley-Davidson’s organizational structure analysis. Retrieved from http://panmore.com/harley-davidson-organizational-structure-analysis
