¶ … Generation Alternatives 1-2 pages Important Section Recommendation 1-2 paragraphs This a Grad level strategic management class.
Harley-Davidson: Preparing for the Next Century
Harley-Davidson is not only a motorcycle manufacturer, but an emblem of the American society. Today nevertheless, the company faces the specific problem of an icon -- that of no longer being up-to-date, trendy and desired by the customers.
Harley-Davidson continues to generate strong financial results, but fact is that the incidence of sales has decreased. It would as such appear that the company is in need of a new strategic approach to help it reshape and reposition itself within the industry in a means which generates customer demand.
At a deeper level, the problem is manifested by the fact that the Harley-Davidson sales are based on history, tradition and sentimentalism. And the sales are attached to the target market of the manufacturer, which has nevertheless aged from 35 to 47. These consumers are as such unable to generate sustainable sales and revenues. The younger consumers, while appreciative of the Harley-Davidson brand, seem to prefer lighter versions, such as those manufactured by Honda, Yamaha, Suzuki or Kawasaki.
2. Problem analysis
As it has been mentioned in the previous section, the underlying problem at Harley-Davidson is that it cannot generate sustainable sales and revenues as its primary target base is aging. The motorcycle manufacturer would traditionally target consumers in the 25 -- 34 age group, but, as statistics have shown, the average age of the modern day Harley-Davidson consumer is of 47. At this age, people make purchases more from a sentimental value, rather than extensive, full capacity use of the motorcycle.
Harley-Davidson has for decades focused on strengthening its brand and making its mark on the American history and society. And it has attained this objective, but it has neglected a fact of life -- the aging of its consumer base. The Harley-Davidson bikes are filled with tradition and strongly placed in the American conscience, but they are not popular and trendy for the young consumers. They consume more and they are larger, heavier and as such more difficult to operate and upkeep by the buyers.
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