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Harley-Davidson, Inc. is an American motorcycle manufacturer headquartered in Milwaukee, Wisconsin, United States. Founded in 1903, it is one of two major American motorcycle manufacturers to survive the Great Depression along with its historical rival, Indian Motorcycles.
If you are not familiar with this retail store, visit their website https://www.harley-davidson.com
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After reading case 5, answer the following questions:
1. If you were CEO of Harley-Davidson, how would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?
2. In America, Harley has shifted the positioning of its products away from simply motorcycles and more toward being status symbols of a particular lifestyle. What are the implications of cultural factors for positioning in other countries that Harley has targeted for growth—ones like Japan, China, France, and Brazil?
3. Problem Solving. If you were advising Harley’s CEO on business expansion in sub-Saharan Africa, what would you recommend in terms of setting up sales centers and manufacturing sites in countries like South Africa, Kenya, and Zimbabwe? When a new location is targeted, what would you suggest as the proper role for locals to play? Should they run everything, or should there be a mix of locals and expatriates? And if the CEO wants to send expatriates from the United States into some locations, what selection criteria would you recommend, and why?
4. Further Research. Is it accurate to say that Harley is still “on top of its game”? How well is the company performing today in both domestic and global markets? Who are its top competitors in other parts of the world, and how well does Harley compete against them? Does the electric Harley have what it takes to fuel the company’s next stage of global growth
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– all citings must be in APA style
– please have five sources (website can be one of them)
– refer to the case and website while writing (along with other sources)
– USE ATTACHED CASE AS REFERANCE FOR FORMAT AND WRITING STYLE
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Case Analysis: Warby Parker
David Nazarian College of Business and Economics
CSUN MGT 360: Management and Organizational Behavior
Monika Avetisyan
September 20, 2023
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Discussion
1. In what ways can a newer, smaller competitor “punch above its weight” by taking
advantage of the Internet? How can the Internet help be used as a tool to help businesses
avoid some of the costs associated with doing business following more conventional or
“old school” approaches? How do you see the balance of power in industries like the
eyewear industry shifting as customers become more comfortable buying eyewear online?
Times have changed drastically, and we have entered the era of social media, technology, and the
Internet. Back in the day, for a small business to grow and survive, it would have to rely on local
customers and hope that people liked the product or service enough to tell others. Nowadays,
businesses of all sorts can get their product out through the help of the Internet, whether they are
well-known or barely starting. Social media, in particular, has become the primary source for
most people worldwide to either learn about new products/services or be bombarded by pictures
and videos from companies on their feeds. As a smaller competitor, you can use it to your
advantage and push your product into consumers’ minds and, most importantly, their screens. As a
startup company, you first must grab the viewer’s attention so later they can engage in your
product or service. Making “buzz” around your company is essential because once it is there, it
only grows bigger and bigger.
An example of this was when the fashion brand Fashion Nova started putting most of its focus on
its social media account on Instagram. In an interview with the CEO, Richard Saghian, and
interviewer Aria Hughes from WWD magazine, they got into the details of his success. She
stated, “So instead of building out brick-and-mortar locations, he and his team exert their energy
on Instagram by posting every 30 minutes throughout the day and talking to his customers, who
are usually 16 to 35 years old, …” (WWD magazine, Hughes, 2018) By using social media this
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company was able to maximize sales and create a powerful public image which was highly
beneficial in terms of profit. Also, becoming more active on social media allowed the brand to
work with stars such as Cardi B. and Blac China, who still very proudly support the brand.
Fashion Nova was founded in 2003, but the company did not reach peak sales until its social
media presence grew. So, to revisit the question of how small companies can use the Internet in
their favor, the answer is to have a substantial social media presence where you promote your
product and let consumers know that your brand is present and interactive with its customers. To
continue and answer “How can the Internet be applied as a tool to help businesses avoid some of
the costs associated with doing business following more conventional or “old school”
approaches?”, it is essential first to know that the old approaches included either radio
commercials, mail, or TV. These options were quite expensive, considering there would have to
be an entire production team and other features, which were not cheap. So, the Internet could help
younger and smaller rivals cut costs and improve efficiency. Warby Parker’s DTC strategy showed
this technique. By bypassing traditional distribution methods and “brick-and-mortar retail,” the
company saved money just like Fashion Nova, which also steered far from buying storefronts.
Warby Parker offered high-quality eyewear at prices that challenged Luxottica’s usual pricing
methods thanks to this lean and efficient methodology (Rana, 2019). Businesses can dramatically
grow their consumer base with the Internet’s global reach.
Warby Parker capitalized on this opportunity by building an easy-to-use online eyewear store,
which helped shift the balance of power. Online shopping’s capacity to cross borders appealed to
consumers who wanted to avoid in-store difficulties. Warby Parker’s “Home Try-On program”
allowed clients to try on frames at home, revolutionizing eyewear shopping. This innovation
simplified and made Internet buying more appealing. (Geron 2016). As consumers got more
comfortable buying eyewear online, the industry’s power balance changed. This change is shown
by Warby Parker’s threat to Luxottica’s quasi-monopoly. The rise of agile online disruptors over
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traditional shops with physical stores illustrated how digital commerce challenges entrenched
industries (Brynjolfsson & McAfee, 2014).
Discussion
2. What impact does Warby Parker’s decision to donate a pair of eyeglasses for every pair
purchased from them have on customers’ perceptions of the company? How does Warby
Parker’s focus on being a significant workplace influence how the company is seen in the
market?
Warby Parker’s strategic actions, especially its charity and workplace culture, have significantly
impacted customer perceptions and the company’s market position. This has helped in Shaping
Customer Perceptions (Duhigg, 2016). Customers now view Warby Parker differently thanks to
the “Buy a Pair, Give a Pair program.” This program emphasized the company’s commitment to
profitability and social responsibility to benefit society. The company’s aim of supplying
affordable eyewear to those in need was now seamlessly integrated with customers’ views of their
purchases to improve the world (Duhigg, 2016). The second impact is the Cultivation of a
Positive Workplace Culture (Heath & Heath, 2020). Warby Parker prioritized employee
satisfaction beyond attracting top talent. Marketing reputation was highly affected, and the
company led its industry with well-written policies, competent leadership, and an inclusive
environment. These adjustments improved its corporate image and resonated with customers, who
increasingly viewed companies that invested in their people and promoted diversity and inclusion
as positive public representations (Heath & Heath, 2020).
Problem Solving.
3. As an operations management consultant, you have been contracted to help a large,
traditionally configured clothing company – Marquee Clothes – to become more
Internet-enabled and competitive in light of customers’ shopping habits, attitudes, and
expectations. The company has a well-established supply chain infrastructure, has more
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than 50 retail locations, and has been in business for over 20 years. Over the last several
years, with increasing numbers of mall closings, the business has had to shut several of its
stores and is seeing much of the foot traffic that traditionally was its bread and butter start
to decline as well. Sales have been off the last three quarters, and the 56-year-old owner of
the privately held company is concerned that she will have to close more stores if things
do not turn around. Her college-age daughter has convinced her that to compete, the
company will have to undergo a makeover and become a twenty-first-century player with
a fully fleshed-out approach and strategy. What should she do? What are some of the first
things that you would advise? What steps must be taken to help take Marquee Clothes
fully into the twenty-first century?
As an operations management consultant, I would first ask the CEO of Marquee Clothes to open
an online store, which would fill the dent in the closed in-person stores. Opening the online store
would include a complete digital transformation to stay competitive in the 21st century. Along
with the first recommendation, I would ensure the company established a robust online presence
(Ritch et al., 2023) to succeed in the digital age. This would require a captivating, user-friendly
e-commerce site exposing the brand’s items and simplified shopping (Ritch et al. 2023). The
website should be responsive to smartphones, tablets, and laptops. A secure and easy-to-use
payment system would also be necessary to build trust and streamline transactions. Another main
recommendation is implementing an Omnichannel Strategy (Ritch et al. 2023). Marquee Clothes
would need an omnichannel approach to succeed. This method integrates online and offline
buying, letting customers switch between the two. Key elements of this method include: Buy
Online, Pick Up In-Store (BOPIS): This option lets users buy online and pick up in nearby
Marquee Clothes locations. It decreases shipping costs and increases store traffic, which may
increase in-store transactions.
Marquee Clothes would need a unified inventory management solution to coordinate online and
offline stock levels. Providing correct product availability information would reduce customer
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disappointment and irritation (Ritch et al. 2023). They could also implement interactive shopping
into the websites where customers could upload photos of themselves, and the website would give
recommendations on which items would match them and their body types. “Targeted Marketing
Campaigns” may also be helpful (Ritch et al., 2023). Behavioral data like purchase history,
frequency of visits, and marketing material interaction could segment customers beyond
demographics (Ritch et al., 2023). To increase conversion, Marquee Clothes could send
personalized email campaigns to clients who have abandoned their shopping carts, gently
reminding them of the products left and offering a special discount. The organization could also
use real-time data to send marketing messages based on customer actions. They could notify
customers of new arrivals and limited-time specials in the activewear department if they frequent
it.
The company may also apply “Inventory Optimization” (Ritch et al., 2023). Marquee should also
consider “Investing in Customer Engagement” (Ritch et al., 2023). Customer involvement is
crucial in the digital age, so Marquee Clothes should invest in social media, email marketing, and
loyalty programs to engage customers. Particular strategies could include Social media
participation on Instagram, Facebook, and Twitter, boosting brand loyalty and visibility. Sharing
user-generated content and holding social media contests help build brand community (Ritch et
al., 2023). Organized email campaigns with personalized suggestions and exclusive offers would
help keep clients informed and interested (Chopra & Meindl, 2015). A loyalty program with
prizes for repeat customers could boost customer retention and lifetime value.
Further Research.
4. What is happening now with Warby Parker? What is the billion-dollar company doing
to stay ahead of other competitors and make headway in the eyewear market? What steps
has Luxottica taken to defend itself against Warby Parker’s disruptive tactics?
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Considering how long Warby Parker has been around, the company is doing exceptionally well.
According to an article by RetailDive, “Warby Parker’s net revenue during the first quarter
increased 12.2% year over year to $172 million…” Looking at this from an economic standpoint,
they increased significantly, which is excellent, especially during these times. This stat also shows
that even though many other companies have risen, Warby Parker has been able to hold their own.
Also, because they have increased in net revenue, they can “…open 40 new stores on a gross basis
with a total projected store count of 240…” (James, May 9, 2023). Warby Parker is doing this to
stay ahead of competitors such as SEE Eyewear, Luxottica, and Ray-Ban and make headway in
the eyewear market by introducing a new virtual feature on their websites, allowing people to try
on glasses before purchasing them. They are introducing other new products as well. Another new
feature is their addition of online prescriptions through virtual eye exams, making it much more
convenient for customers who cannot visit their stores. Even though Warby Parker dominates the
market, so does their competitor, Luxottica. In the Luxus article, it states, “The group’s share of
net profit was rounded up by 50% to EUR 2.1 billion in 2022.” (Michentef, 2023) This is a
massive jump for the brand, and it shows that Luxottica has not been backing down despite
Warby Parker’s efforts of new additions. Also, since Luxottica is a worldwide corporation, they
have stores worldwide, which gives their customers worldwide access, unlike Warby Parker,
which only has stores in the US and Canada. This is a huge advantage, considering customers can
visit their stores anytime. Both are dominating the eyewear market at their own pace, but there
will always be competition between the two brands.
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References
Hughes, A. (2018, February 28). How Fashion Nova Won the Internet. WWD; WWD.
https://wwd.com/fashion-news/fashion-features/inside-fashion-nova-cardi-b-1202595964/
Brynjolfsson, E., & Mcafee, A. (2014). The second machine age : work, progress, and prosperity
in a time of brilliant technologies. W.W. Norton & Company.
Chopra, S., & Meindl, P. (2016). Supply chain management : strategy, planning, and operation
(6th ed.). Pearson.
Davenport, T. H., & Harris, J. G. (2007). Competing on analytics : the new science of winning.
Harvard Business School Press.
Duhigg, C. (2012). The power of habit : why we do what we do in life and business. Random
House.
T. (2016). Warby Parker’s Vision to Do Good: Turn Profitable. Forbes. Retrieved from
https://www.forbes.com/sites/tomiogeron/2016/04/13/warby-parkers-vision-to-do-good-and-profit
able/?sh=3e4a123a126f
Heath, C., & Heath, D. (2020). The Power of Moments: Why Certain Experiences Have
Extraordinary Impact. Simon & Schuster.
Kumar, V., & Rajan, B. (2017). Creating a Seamless Multichannel Experience: Evidence from a
Field Experiment. Journal of RetGeronailing.
Ritch, E. L., Canning, C., & McColl, J. (Eds.). (2023). Pioneering New Perspectives in the
Fashion Industry: Disruption, Diversity and Sustainable Innovation. Emerald Publishing Limited.
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Warby Parker revenue up 12.2% in Q1 as it reins in marketing spend. (n.d.). Retail Dive.
https://www.retaildive.com/news/warby-parker-Q1-revenue-jumps-reins-in-marketing-spend/649
785/
EssilorLuxottica topped out in 2022. (2023, September 22). Luxus Plus.
https://luxus-plus.com/en/essilorluxottica-topped-out-in-2022/
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