Harley-Davidsons' Problems that Need to be Addressed

Harley-Davidsons' Crisis
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Harley-Davidsons' Crisis
Background
The Hadley-David brand has been synonymous with American capitalism as it cut its market niche amongst middle-aged white males. However, the company has been reported to be losing its grip on the market since the financial recession of 2008. This has necessitated the management to hire a new CEO who will make the company competitive in the market-facing stiff competition from various established brands like KTM, Honda, and BMW (MarketLine, 2021). The company faces numerous problems that need to be addressed for it to regain its control in the market and the problems are both external and internal factors
The company has faced macroeconomic problems that affect its operations, but it has no control over them. The financial recession of 2008 was a macro-environment that affected the firm's ability to get revenue due to a decline in sales. Other macroenvironmental factors that have hindered the company from profitably operating include political tensions and tariff wars that have been problematic since its formation in 1903 (MarketLine, 2021). However, the microenvironmental factors that have hampered the firm's effectiveness in making profits include its competitors, who have taken advantage of its poor marketing strategies. The company has acknowledged the role of management in revenue generation. It has since hired a new CEO to be responsible for implementing and solving the microenvironmental challenges the company has encountered.
Problem Statement
Harley-Davidson’s main problem is its failure to identify a clear market target audience as it has been identified with middle-aged whites. The company’s strength is its brand which has been in existence since 1903, and can take advantage of it to attract more customers.
Alternative Solutions
The company has endeavored to widen its market base by appealing to a younger and more diverse audience since 2009. However, the strategy has not been effective, evidenced in reduced revenues hence the need to be more innovative in its marketing strategies that target the emerging markets of young lovers through intensive innovation (Kramer, 2019). The advantage the company enjoys is the existence of a mostly middle-aged white client base, and the company needs to attract new clients to purchase its well-branded products. The brand is an opportunity that the company can take advantage of due to its known reputation as a leader in the manufacturing and selling of bicycles. The company needs to identify and widen its customer base by identifying the target audience for its products, as this will be critical in increasing sales and subsequent revenues.
The company needs to deal with the threat of lack of clear identification of a clear target audience through the employment of various strategies. For instance, the company should invest in creating a detailed description of its clients by outlining various traits such as demographics, professional details, psychographics, challenges, and buying process. Consequently, the company’s marketing strategy should focu...