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A core competency is defined as the capital and capacity that defines the competitive advantage a company has over its competitors over time. Core competency is used to portray the personality and is drawn from the capabilities of the company. Our company is Harley Davidson. Other examples of core competencies in other firms would be how Sony prides itself in producing and assembling small and miniature-sized electronic appliances. In our case core competencies of Harley Davidson can be distinguished by the standards that dictate what a core competency is and what is not. A core competency must be valuable, uncommon, inimitable, and organized. A value chain analysis assists a company in making an evaluation of overheads and activities that are centered towards delivering value to its clients (Mitchell, 2009).
Harley Davidson’s value chain activities that may be considered as core competencies include:
- Value chain activities that may be considered core competencies for H-D include: Inventory management and order processing, whereby the company strictly organizes the inventory in its plants using the just in time policy. In this policy, a request for an inventory part is passed through a signal in the form of a ticket and a reply through the provision of the requested part is made. This removes the overproduction of certain parts and ensures that the quality of the motorbike is sustained. It also improves the company’s return on investment as it also saves on costs such as warehousing.
- Marketing and sales: Harley Davidson is known worldwide due to the successful marketing campaigns that they have done in the past. Adverts of the motorcycles have been done by creating a retro appeal whereby the machines being assembled to have the look and feel of motorcycles assembled during wartime. This has created and exploited brand loyalty among its customers. Through its marketing efforts, the Harley Davidson brand is being compared to others such as Google and Microsoft (Mitchell, 2009).
- Services: Harley Davidson is known to offer technical support through its large network of dealers all over the world. This creates a direct connection for the company to its customers and it also gives them a form of communication whereby the customers can voice their concerns which can be easily be picked up by the company. The company also does repairs and maintenance for Harley Davidson customers and this ensures that value is created for its customers.
- Research and Development: H-D is known for pushing the envelope when it comes to the innovation of its motorbikes. The staff at the company has always come up with several inventions of different engines such as the famous V twin engine and the V-Rod which was invented with the help of engineers from other firms such as Porsche. Research and development are not limited to the bikes assembled but also to the production and distribution processes.
- Regulatory Affairs: H-D is known for its strict compliance with environmental policies to meet standards set out by the various environmental bodies such as the EPA and European Union. In 2005, the company was the first to register in the one clean-up program which was meant to clear out any forms of waste that affected both the soils and groundwater at its former plant in Pennsylvania. Its efforts have been congratulated and recognized by the EPA director of operations.
Despite the core competencies of H-D’s competitors, H-D continues to beat the competition mainly because of the brand image it has cultivated over the years. The retro feel infused into the motorcycle is responsible for driving up the prices of the bike. A Harley Davison bike is considered luxurious because of the years and heritage that it maintains (Mitchell, 2009).
References
Mitchel, D. (2009). Harley-Davidson Chronicle – An American Original. New York: Publications International Limited. pp. 68–69
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