战略行为经济学 5_ Case: Haley-Davidson, Inc. 1987

- How was its competition position at YE 1986

- What competitive advantage, if any does it enjoy?

- What steps should it take to secure its future?

1903-1958, it served military, police, and bikers like Malone Brando. (Another bankruptcy in 1953).

1960’s:

HD: Strong brand image, distribution service support, young and low customer captivity, low R&D spend

Japanese: start from west cost (geography focus); light bikes, sports bikes; young, low customer captivity; R&D in Japan; low cost and low price; heavy advertising; rapid products turnover; ride to work

HD’s market share was shrinking while the total market size increased with Japanese manufacturers. Eventually HD stepped back to its own “ride for fun”, super-heavyweight segment, hence a much stronger position and great customer captivity. HD then was able to raise price with same cost structure, gained a better margin and higher stock price.

Lesson:

- Fast-growing market is ENEMY (for established companies like HD in 1960’s)! VW China, Motorola/Nokia China may be new examples.

- Only strongly defendable positions are sustainable advantages, like the clearly identified Core Value of HD in super heavyweight segment. Value & Focus - Bellichick (Head coach of New England Patriots)