Quote:
Originally Posted by HuskyMan
it is a well known fact that in most instances, if a company is not creating new and more inventive products, it is not growing. However, HD may present a slightly different scenario in that the riders are loyal to the rarely changing Harley product offerings. In other words, these aren't people who necessarily want change.
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So, HD's business plan is to only make a product that appeals to a specific group of customers who have an average age of 50 or 60? I don't think I'll be buying their stock.
Take a look at BMW, another bike company with products in the same price range. Personally, I wish they sold nothing but air cooled twins (I'm keeping mine). If BMW still sold the bikes I like, I would have probably bought several new ones over the years. I have no interest in their current bikes, so I don't buy them. Fortunately for them, they understand that I am not their future; I'm probably not going to be buying bikes from anyone in 20 years, so they don't need to keep me happy. They need to figure out how to sell products to the 20-somethings with enough cash to buy a $15k bike, that is their future. Those potential customers do not want the same product I want, so they are going to move on. That is the correct business decision and that is why their sales are up about 20% and HD is about to disappear.
The same goes for Benz; I have no use for their new stuff, but I'm currently shopping for a (used) c-class for my daughter, who's learning to drive. It is possible that she will be buying their cars 40 years from now; who do you think they should be trying to keep happy?