With the production of a complicated machine, such as a motorcycle, the manufacturing and distribution process can quickly diminish revenue. Harley Davidson has adopted a system in which, the motorcycle parts, are built at various locations and eventually become assembled in only two manufacturing plants within the United States. After the motorcycles are built, they are shipped to independently owned and operated Harley Davidson stores nationwide. This provides many benefits to Harley Davidson and owners alike.
Place
The backbone of Harley Davidson is located in Milwaukee, Wisconsin. The three most important locations are all located within a thirty-minute commute. Corporate headquarters, the product development center (PDC), and powertrain …show more content…
The first one is located in York, PA, which is responsible for assembling the larger motorcycles such as the Touring, Trike, and Softail models (Harley-Davidson, 2016). The other plant is located in Kansas City, MO and is responsible for the assembly of the smaller styles such as the street style models (Harley-Davidson, 2016).
Harley Davidson has two international assembly plants, Brazil and India. As discussed earlier, the powertrain operation center builds and compiles CKD kits, which is then shipped to either of these assembly plants (Harley-Davidson, 2016). The Brazil assembly plants receives and builds motorcycles from the CKD kits. The motorcycles are then shipped to one of over fifty dealerships throughout South America. The same concept applies to the India assembly plant except it only builds street models and distributes the newly built motorcycles to India, Italy, Spain and Portugal (Harley-Davidson, 2016). …show more content…
The dealerships hire salespeople and Harley Davidson will train these individuals in their products and services. This is an advantage for Harley Davidson because they can push their services such as loans and warranties.
Competitive Advantage
Harley Davidson has a competitive advantage in respect to place by distribution method, oversea operations, and dealerships. The distribution of Harley Davidson products is an advantage when referring to national sales. The relatively short distances a motorcycle has to travel from engine assembly to dealership is an advantage for a consumer’s final price. By reducing the distribution, Harley Davidson has better oversight and quality control of the production.
Overseas operations are an advantage as well due to the CKD kits being compiled in the United States and then shipped to an assembly plant. The use of CKD kits can reduce damage, theft, exportation expense for Harley Davidson. The assembly plants provide a cheaper alternative than building the motorcycles in the United States due to transportation fees and different labor laws in South America and
Place
The backbone of Harley Davidson is located in Milwaukee, Wisconsin. The three most important locations are all located within a thirty-minute commute. Corporate headquarters, the product development center (PDC), and powertrain …show more content…
The first one is located in York, PA, which is responsible for assembling the larger motorcycles such as the Touring, Trike, and Softail models (Harley-Davidson, 2016). The other plant is located in Kansas City, MO and is responsible for the assembly of the smaller styles such as the street style models (Harley-Davidson, 2016).
Harley Davidson has two international assembly plants, Brazil and India. As discussed earlier, the powertrain operation center builds and compiles CKD kits, which is then shipped to either of these assembly plants (Harley-Davidson, 2016). The Brazil assembly plants receives and builds motorcycles from the CKD kits. The motorcycles are then shipped to one of over fifty dealerships throughout South America. The same concept applies to the India assembly plant except it only builds street models and distributes the newly built motorcycles to India, Italy, Spain and Portugal (Harley-Davidson, 2016). …show more content…
The dealerships hire salespeople and Harley Davidson will train these individuals in their products and services. This is an advantage for Harley Davidson because they can push their services such as loans and warranties.
Competitive Advantage
Harley Davidson has a competitive advantage in respect to place by distribution method, oversea operations, and dealerships. The distribution of Harley Davidson products is an advantage when referring to national sales. The relatively short distances a motorcycle has to travel from engine assembly to dealership is an advantage for a consumer’s final price. By reducing the distribution, Harley Davidson has better oversight and quality control of the production.
Overseas operations are an advantage as well due to the CKD kits being compiled in the United States and then shipped to an assembly plant. The use of CKD kits can reduce damage, theft, exportation expense for Harley Davidson. The assembly plants provide a cheaper alternative than building the motorcycles in the United States due to transportation fees and different labor laws in South America and