Saturday, September 12, 2009

100 Years of Harley Davidson Legacy

By George Ross

It has been a century since William Harley and Andrew Davidson first collaborated to reinvent the motorcycle in Milwaukee, USA. The collaboration has revolutionized the world of motorcycle and changed the bike market from selling a mere vehicle to selling a lifestyle.

By creating a biker image, the Harley Davidson made its competitors who were just selling mere vehicles eat dust. Harley ranks among the top growth stock since its 1986 IPO in America. It posts an annual earnings growth of 37% despite some setbacks.

Its easy to see why the company owns the biggest sales share in the motorcycle industry. Having a Harley is like being inducted into a century old fraternity. Purchase of a Harley makes you a member of the Harley Owners Group or HOG as they are fondly referred to. The Legacy of Harley Davidson is being kept alive in the brotherhood of HOG members.

While the company is reflecting robust earnings, there is some worry about how the company will fare in the next 100 years. It is interesting to note that a considerable percentage of Hog owners are baby boomers enjoying the benefits of their earnings and accomplishments in the 90s. What used to be a niche for young professionals, the HOG drivers are now growing older and its important that the Harley should appeal to younger demographics if they intend to survive the succeeding years.

Today's generation clearly favors the sleek sporty designs as opposed to the chunky and brassy design Harley Davidson is known for. We have to give credit to the company who refuses to buckle down as opposed to its past competitors. After suffering 15 long years of sales decline, it has rallied and has now been enjoying 11 years of ascent in sales.

The Harley relies more on image than performance, and like other institutions that rely on such, it is vulnerable to changes in fashion and taste. Since Harley cannot clone the aging boomers, it is important that they must reach deeper to emerging yuppies and the younger crowd. It would be tricky for the company to make the changes since it has a cult following. They could risk alienating their base crowd. Newer popular models rely on water cooling engines which is a big departure from the Harleys air cooled ones. If the Harley would do away with the roaring sound, they can say goodbye to their customer base.

Dealers of Harley Davidsons are confident though that it will find a way to find a balance. They have done and awful lot in the past and with current efforts in sales strategies, the dealers are confident that the Harley will be able to reach out to the new crowd while still keeping faith with their old fanatical followers.

As the new century is well on its way, you can believe that Harley Davidson will find a way to bridge the gap. It has been a legacy for the past 100 years and it looks like it will still exercise its dominance in the coming generations.

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