Analysis Of Harley-Davidson Motor Company

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Harley Davidson
Harley Davidson is a globally recognized brand. It not only sells American motorcycles, but also sells an American legend. It was founded in a small shed in Milwaukee by William S Harley and two brothers, Arthur and Walter Davidson (Motorcycle USA). The company has been a phenomenal success. It is valued at $ 7.72 Billion, which is 131 times more than its actual book value of $59 million (Omar). Furthermore, it has a movie named after it and millions of fans frequent its annual anniversary in Milwaukee (Omar).
The organization made a fortune selling emotive themes and a lifestyle product for a generation of Americans who were characterized by the need for safe rebellion and the romance of the open road. Therefore, the financial success of the motor company was as a result of its ability to intertwine itself with the American history and culture. For example, the American military elected to use Harley Motorcycles during the First world war (Motorcycle USA). According to the Harley Davidson (55), it was able to identify new markets and to expand into them quickly while forming strategic partnerships with other organizations.
Forbes report states that the financial health of Harley Davidson suggest that the company is headed into irrelevance (Baskin). The problem facing the company is the drastic decrease in demand for its products due to the fact that its core market segment is already saturated (Baskin). This is because it is made up of people aged over fifty years. They not only own a Harley Davidson motorcycle, but also have to contend with a decrease in fitness. Moreover, despite the impressive financial returns that are recorded, it is dominating a rapidly shrinking motorcycle category (Baskin). In addition, an attempt by the company to extend its brand into new categories damaged its image instead of creating new revenue streams.
The company needs to engage with the young people in order to create a new market segment. This will involve a social media strategy and a doubling down on the content marketing strategy that made it so successful in the first place. Furthermore, it needs to find new markets for its product. Its American market is facing a steep decline which means that it needs to focus its efforts in growing its global appeal (Interbrands). For example, the change in the financial fortunes of the BRICS has created a large middle class who are a potential market for the motorcycles. As a result, it has to transform its product from being a symbol of the American culture to a symbol of youth and other themes that consumers around the world will be able to relate with. Moreover, it needs to keep innovating to produce faster, more energy efficient and safer motorcycles.
In conclusion, Harley Davidson was able to make its fortune selling a product which appealed to a particular generation of Americans. The saturation of this market segment spells doom for one o...