Second, Harley-Davidson is challenged to effectively specify its target market a first step to appropriately serving that market’s needs. Historically the firm's target market has been males between the ages of 19 and 55, However, in the middle decade, Harley-Davidson has pursued younger riders and women as a means of expanding its target customer segments. But expanding the segments the firm serves with its products is not a risk-free decision or choice for the firm to make in that serving others might cause the firm to lose its ability to effectively serve the specific needs of the 29- to 55-year- old male (again, the historical target customer). This matter is considered more fully later m the case.
Third demands and cost drivers for the motorcycle market arc ever changing. Overseas competitors have shifted their focus from being the least expensive to being affordable and to providing a wider variety of motorcycles ...view middle of the document...
5 percent of net revenue in 2011)
■ General Merchandise (5,9 percent of net revenue in 2011)
■ Licensing ($43.2 million of net revenue m 2011}
■ Harley-Davidson Museum
■ International Sales(32 percent of net Motorcycle rev¬enue in 2011)
■ Patents and Trademarks
■ Other Services
In 1903„ William S. Harley and Arthur Davidson founded Harley-Davidson Motor Company, known by enthusiasts as “the Motor Company,” in order to fund their racing pursuit. Accordingly, their first motorcades were merely contemporary bicycles with small engines retrofitted to the frame. It was Harley- Davidson's early success in motorcycle racing that fueled the demand for its early models, which were sold in dealerships as early 1904, Because these turn of century races were as much about endurance as speed Harley-Davidson acquired invaluable knowledge perti¬nent to practicality and robust design. After significant success in road and endurance races, Harley-Davidson broke fresh ground with the introduction of the V-Twin engine design. Superior to large single-cylinder engines, the lighter V-Twin design allowed similar displacement in a lighter package with a shape that fit naturally into the bicycle-inspired frames of the early 1900s. Few suspected that this design would beeline so integral to modern motorcycles,
Having dedicated over a third of its production to the US. Army, Harley-Davidson sales exploded during World War 1. With the advent of motorized warfare, the motorcycle proved itself to be far more than just novel invention, [n addition Lo proving itself to the Army, Harley-Davidson also proved itself to soldiers. After the war, soldiers returned home and became a loyal customer base for the young firm, Through the l920s, Harley-Davidson continued focus on design improvement and racing. It spent much of the decade fighting for market share with multiple medium and small competitor. During this time, firms producing automobiles, airplanes, bicycles, and industrial machinery also tried their hand, at building