The causative (macro) issues and the symptomatic (micro) issues and implications
HD has a strong core business anchored by a uniquely powerful brand however it needs to reexamine and alter its strategy to the rapidly changing macro and micro environments so as to ensure continued success in the heavyweight motorcycle industry.
HD strategy is the market leader in heavyweight motorcycle industry (niche market). HD sought to design highly distinctive product and service offerings that create high value for their customers, justifying a premium price. The heavyweight motorcycle has appealed to a particular segment of the market which is mostly affluent males (88% males to 12% females) who are at an average age of about 47 years of age (Armstrong & Kotler, 2009). This strategy has worked for HD in the past but presents particular problems for HD in the future as it aims to increase its marketshare.
As the affluent males age there are less likely to invest in more than 2 new HD motorcycle in their lifetime. The strategy for the HD motorcycle has not appealed to females as women may feel that they are not able to handle a heavyweight motorcycle and it may be perceived as a predominantly manly toy. In addition the price and possibly the size of the heavyweight motorcycle has deterred potential younger customers as it maybe unaffordable and may not want to learn how to ride on a new HD. HD mission statement states that “We fulfill dreams through the experience of motorcycling,by providing to motorcyclists and to the general publican expanding line of motorcycles and branded products and services in selected market segments”. The mission statement guides the business of HD. HD has selected a market segment for whom it targets which ofcourse has its advantages and disadvantages. HD focuses its heavyweight motorcycle business to mostly affluent baby boomers who have the money to buy the product but on the other hand have less customer lifetime value....