The company and its customers travel together: In Harley shippedmotorcycles, up fromin
Explain the concept of diversification. Be able to apply the three tests for diversification. Distinguish related and unrelated diversification. Firms using diversification strategies Involve a firm entering entirely new industries. While vertical integration involves a firm moving into a new part of a value chain that it is already is within, diversification requires moving into new value chains.
Many firms accomplish this through a merger or an acquisition, while others expand into new industries without the involvement of another firm. Three Tests for Diversification A proposed diversification move should pass three tests or it should be rejected.
From competitive advantage to corporate strategy. Harvard Business Review, 65 3— How attractive is the industry that a firm is considering entering?
Unless the industry has strong profit potential, entering it may be very risky. How much will it cost to enter the industry? Executives need to be sure that their firm can recoup the expenses that it absorbs in order to diversify.
When Philip Morris bought 7Up in the late s, it paid four times what 7Up was actually worth. Making up these costs proved to be impossible and 7Up was sold in Will the new unit and the firm be better off?
Unless one side or the other gains a competitive advantage, diversification should be avoided. In the case of Philip Morris and 7Up, for example, neither side benefited significantly from joining together. Some firms that engage in related diversification aim to develop and exploit a core competency A skill set that is difficult for competitors to imitate, can be leveraged in different businesses, and contributes to the benefits enjoyed by customers within each business.
A core competency is a skill set that is difficult for competitors to imitate, can be leveraged in different businesses, and contributes to the benefits enjoyed by customers within each business. The core competencies of the corporation. Harvard Business Review, 86 179— For example, Newell Rubbermaid is skilled at identifying underperforming brands and integrating them into their three business groups: Honda Motor Company provides a good example of leveraging a core competency through related diversification.
Although Honda is best known for its cars and trucks, the company actually started out in the motorcycle business.The Certified Production Technician (CPT) program addresses the core technical competencies of higher skilled production workers in all sectors of manufacturing.
Certificates are awarded in Safety, Quality Practices &Measurement, Manufacturing Processes & Production, and MaintenanceAwareness and Green Production. Much has been made recently of Harley-Davidson’s lack of youth-market penetration. Some millennials claim that the boomer-centric vibe of the company’s heavily accessorized and rather.
7 Analysing resources, capabilities and core competencies 8 Creating and maintaining competitive advantage The distinction between strategic thinking, strategic management Harley-Davidson Intangible qualities Harley Davidson Case Study MBA Program In Partial Fulfillment of the Course Requirements for MBA Submitted by July 24, Introduction Harley Davidson, established in , is the largest manufacturer of motorcycles in the United States.
Core Competencies Especially in the realm of Information Technology, a consultant must be able to solve problems quickly using technologies that are sustainable and scalable. As a knowledgeable resource in many areas of IT, honing my skills and focusing on the areas below have .
Harley-Davidson is making significant changes to its global strategy, but it's remaining committed to its core business.; The company has been attacked by Donald Trump after shifting production to avoid European tariffs.
Harley is moving toward a multi-market strategy that will involve partnerships and new motorcycle designs.