Harley Davidson

Harley-Davidson, having a long history of producing motorcycles for a discerning market, has recently found that continued success is dependent upon adapting to a changing market which may involve the development of entirely new strategies. One of the major issues facing Harley Davidson going forward is how it can appeal to younger riders and female riders, both having more options and representing more opportunity now than at any other time in the existence of the company. Also, another issue that remains for HD is how it can generate sustained growth globally, as competitors seize opportunities in the heavyweight motorcycle market. Funding expansion has proven to be a challenge for the firm, as previous efforts have produced less than favorable results.

Early on, the company enjoyed a comparative advantage that set it apart by providing vehicles with raw power, unique looks and sounds, and a user-friendly design that fostered extreme brand loyalty. It attracted customers who were interested in breaking the mold and living on the edge. Their customer focus, however, did not represent the entirety of consumers that could produce profits in the motorcycle industry. Competitors, such as Honda, saw in roads as they were able to produce cheaper and smaller products more efficiently to capitalize on the greater market.

The company has succeeded in developing relationships with employees, customers, and the community. Employees are afforded greater input in the production process and a more involved team environment. They are encouraged to volunteer in charitable organizations. Harley Owner’s Group (HOG), the largest motorcycle club in the world, along with the Rider’s Edge training program has cultivated unity in their consumer base and their dealers. The company has successfully reached out to the community through fundraisers, such as for the fight against neuromuscular disease. All efforts have not lead to as much success as hoped, as baby-boomers age and represent a diminishing customer pool, female purchases stagnate, their motorcycles persist as more expensive than substitutes, and the inverse relationship between strength in the younger and older markets further distances them from capitalizing on the new emerging market.

With the acquisition of Buell, HD was hoping to advance in the sports model arena and reach out to younger, more price-sensitive buyers in the global market. HD has tooled its marketing efforts, organizing events around female and minority organizations, as well as reaching out to younger buyers and pushing more inexpensive models. With the development of the V-Rod, which represented their greatest break from tradition