Characterizing HD’s core challenge(s), importance, urgency, etc., as of 2005 Harley-Davidson’s challenges are characterized by an aging consumer base in the midst of booming and affordable brands such as Yamaha and Honda. The American company, which has created a legendary pathway for the global motorcycle industry, is known for its emphasis on building customer loyalty. However, it has encountered many challenges that have created a point of weakness in the sale of its heavyweight motorcycles. With its consumer demographic gradually aging, its competitiveness has greatly fallen, especially amongst the younger riders. There is a need to expand its overseas market with a view of improving profitability. Besides, Harley-Davidson has to come up with new brands that are more desirable and affordable for customers of all age brackets. In the accomplishment of this task, the company should not underestimate the performance and consistency of the Japanese stocks that are offered at a comparatively low price. With the drastic decrease in the stock price by about 17-percent following the altered sales projection in 2005, the company needs to implement an alternative marketing strategy. The urgency of this decision has become a hot topic amongst the firm’s sales analysts. The aging consumer demographic makes the need to reintroduce new brands little by little to meet ridership demands inevitable. Qualitatively deconstructing HD’s world with PEST, PORTER, and CRACK PEST Analysis Political – The Harley-Davidson brand is widely regarded as an icon amongst the American people. The company has ventured into other markets in Asian countries such as China and India, whose operating conditions are deemed indeterminate. It had also gained about 11-percent of the European market by 2004. However, ecological apprehensions that have risen in such markets have grown into political subjects, challenging its future sales projections. Economical – The Harley-Davidson Company is currently facing various economic headwinds that have hit its business hard. Although the company survived various harsh economic times, including the great depression, it is still miles away from selling 275,000 units in the home market. This target was only achieved in 2006 after the company reviewed its sales strategy. The stiff competition from foreign European and Japanese motorbike manufacturers has led to a loss of about 80% of the US market. These companies offer enormous discounts that have been backed by the US strong dollar. Due to the company’s need to protect its traditional brand and image, there are no noteworthy markdowns that will be given to its heavyweight motorcycles. Social – The prime challenge is facing the company is aging consumers. In the US, most of the buyers of the Harley-Davidson brand are couples aged over forty years with an average income of approximately $78,000. The high prices of the brand have alienated the youthful generation and female riders. Research has proven that only 9% of the company’s heavyweight motorcycles are sold to women. Technological – The difference in technology between Harley-Davidson and other brands has played a key role in the determination of the company’s success in the international market. Although new technology allows for the production of more fuel-efficient and ecologically responsive engines, many customers prefer Harley-Davidson’s exclusive V-engine design that prod