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 to customers as options to purchase. This competitive- shift has put pressure on Harley-Davidsons key markers and has forced the firm to respond With over 12 percent and 55 percent of the European and US. heavy weight motorcycle market respectively, Harley- Davidson has a substantial territory to defend.

History
Harley-Davidson, Inc. has been a publicly traded Firm since 1987. It has two primary divisions: Motorcycles and Delated Products and Financial Services. The Financial Services Division provides credit to motorcycle buyers and dealerships as well as risk man-agement and insurance services for all parts of the firm, The Motorcycles and Related Products Division currently operates through eight primary segments：

■ Parts & Accessories (17.5 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