New Balance Case Study
Appendix 3 – Internal Analysis
a) Tangible resources:
i) Physical: plants and equipment
* H-D invests continuously in plants and equipment.
* H-D plants are located in different states in the US, very far from each other, which causes very high transportation costs.
* H-D is known for its technological backwardness in terms of engines, suspension systems, braking systems, and transmissions.
* Steady increase in profit for 20 years (until 2007)
* Downturn in the last year (2008)
* Limited ability to invest in technology and new products due to smaller corporate sizes and inability to share research expenditure across cars and bikes
* Flatter and more team-based organisational structure, which provides better flexibility and effectiveness
b) Intangible resources:
* High level of employees’ loyalty and commitment to the company
* Good management-employee relationship, characterised by open communication, employee support (e.g. education program)
* lack of significant innovation activities
* Extremely strong brand name
* Very high customers loyalty
* Strong relationship with the customers through HOG
* Close relationship with the suppliers through SAC
v) Distribution network:
* Very well developed distribution network
* Close relationship with the dealers – dealer development program
vi) Strategic alliances:
* Alliances with Porsche AG, Ford, and Gemini Racing Technologies – provide access to automotive technology
* Recently has formed an alliance with Shell
* Offering a...