Synergy is an often-used word in business, but as the popular press and the textbook suggest, many efforts at diversification do not provide value to customers or shareholders.
Based on your analysis of Harley-Davidson to date and its merger, describe how it has done or could do the following:
Find economies of scope. Provide examples of specific actions Harley-Davidson's managers could take to reduce expenses or share activities through horizontal relationships across brands.
Find ways to achieve economies of scope by leveraging assets and capabilities across business units.
Find ways to enhance market power by pooling and negotiating or vertical integration.
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1. Find economies of scope. Provide examples of specific actions Harley-Davidson's managers could take to reduce expenses or share activities through horizontal relationships across brands.
• Harley Davidson (HD) could develop or acquire new products that may attract its current customers even if these new products are not technologically related to their existing product line. The company can also partner with other companies that can provide diversity to its products to cater to customers that need more choices. HD is a premium brand and is considered as an American 'iconic brand'. There is a need to produce low cost products to cater to customers who need affordable motorcycles. HD also needs to produce new products for people of other races or a motorcycle that doesn't promote exclusive 'American' image.
• HD can promote itself with environment friendly lightweight motorcycles. This will attract the new generation who are more ...
* Harley Davidson: economies of scope (leverage assets, capabilities; reduce expenses, etc.) & enhance market power. The solution is 638 words (including questions) with three non-APA references.