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Tied in with the brand is the operating environment, in particular consumer trends. Because of its lack of flexibility with regards to product, Harley Davidson is highly sensitive to fluctuations in the external environment. Changes in consumer preferences result in demand shifts that significantly affect Harley Davidsons revenue. Also with regards to consumers, Harley Davidson is affected by demographic trends[3]. For example, when the company enjoyed something of a renaissance during the late 1980s and 1990s, it was the result of a demographic bubble passing through middle age, which is a core target market for Harley Davidson. Other shifts have seen consumers demand lighter, flashier bikes from Japanese manufacturers

Consumer trends represent such a critical input for Harley Davidson because of the way in which they drive demand. In recent decades, demand shifts for Harley Davidson have been sudden and dramatic. These shifts impact decisions regarding production capacity, new product development and other key strategic thrusts. The companys brand image makes it difficult for it to make dramatic changes to its product offerings in order to adjust to demand fluctuations. Therefore it is critical that Harley Davidson make subtle changes to other parts of their strategy in order to

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