Harley Davidson: Preparing for the Next Century

1237 Words5 Pages
What are the challenges facing Harley-Davidson as it enters the 21st century? As Harley enters the 21st century, it may need to switch some gears to stay alive in the dramatically changing industry. Although Harley experienced immense market share growth before the turn of the century, recent years have not been so promising as the entire touring and cruising industry has been slowing down. Moreover, Harley is facing a rapidly declining and aging target segment - this poses a critical concern for Harley since it is likely that its market share will decrease. Harley faces a number of challenges and these will be addressed below. First, Harley’s customer base is “graying”. Harley is slowly losing its original customers, the baby boomers. As a result, Harley must target the younger 25-34 year old generation. There is a drastic change in the preferences of this younger group of riders, who generally prefer the lightweight bikes offered by competitors. In addition, as the Harley brand is strongly associated with the baby boomer generation, younger generations feel reluctant and appear to “rebel” against it. The combination of its aging target segment and a shift in preferences of the younger generation poses a severe problem for Harley’s revenue stream. Harley’s focus on the baby boomers caused them to overlook the viability of other segments. Historically, Harley concentrated on the adult male segment that craved a “tough” look. They failed to appeal to older males and younger females that the Japanese brands targeted. The Japanese were not only successful with their smaller and more fuel-efficient vehicles; they were also highly proficient in manufacturing. The Japanese quickly snatched market share away from Harley when they entered the market in the 1960s. Now, in the 21st century, Harley faces the issue of gaining competiveness against its Japanese rivals in

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