This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
4/13/2005
Harley Davidson
The Harley Davidson motor cycle company has been around for a very long time. They are one of America’s true icons. In the past, demand was so great that people would be put on waiting lists for months just to own one of these iconic bikes. Because of these long waiting lists, could more bikers be willing to purchase Japanese bikes? Harley has had its share of hard times and they seem to be coming back around. Their stock just experienced the worst plunge in their long history. Maybe the days of having a small monopoly on a certain motor cycle segment are coming to an end.
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2 comments:
Harley-Davidson has started to diversify and expand their market, and I think it's working well. You can get t-shirts, jackets, hats, and a ton of accessories as well as the bikes. In fact, without these sales I doubt most Harley shops could stay in business these days.
http://www.kamloopsharley-davidson.ca
and
http://www.yukonharley-davidson.com
I think these are a couple of good examples...I may be a little bias since I made 'em. Feel free to support our Harley shops by picking up a cool t-shirt!
This sounds like classic monopolistic competition to me. They'll have to figure out some product line on which they can make extra profits - although t-shirts and so on does sound like an area where they can earn monopoly profits.
P.S. One of the funniest jokes I ever heard on TV was when the nerdy friend on Roseanne tried to impress someone by saying he hadn't decided if he was going to buy a Harley or a hog.
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