Harley Davidson Effect on Economics

Harley Davidson Effect on Economics

Derrick Alston

Southern New Hampshire University

Abstract

This paper will discuss the start of Harley Davidson Corporation from 1901 to its present standing within the business community. William S. Harley is credited with the starting of the Harley Davidson Company and designed its first prototype using a bicycle fitted to a motor.

The intent of the cycle was for racing and speed competition. The business has suffered tremendous failures as well as success in the past several years. This paper will chronicle the history of its effects on local economy; Harleys enthuses, and international economics. The paper will touch on companies’ competitions and how it has adapted its sales approach to attract buyers to the Harley market.

Harley Davidson

Harley Davidson an iconic name which has been a part of American industrial development for the past 100 years. The company is known over the world for making a rugged motorcycle designed for people with a rough exterior. The image of a Harley rider is that of a modern outlaw, a man who lives by his own rules and determines his outcome. The motor cycle can be seen on many movie sets of the films that portrait menacing gangs all riding custom bikes overlaid with tassels, leather and unbaffle mufflers to project a loud thunderous blaring noise that can be heard for miles. This would be the stereotype in which many Harley riders would like to project to the public at large. However, many of the bikes sold today are merely weekend toys and hobbies for many middle class, middle age men looking for a change of pace. All companies looking to design or sell a product, must start with a public desire to want a bike, thus creating a demand for the product. The founders of Harley Davison were not any different and needed a hook per say to attract buyers and investors. This paper will discuss some of the success and failures of the company.

This paper will cover the financial development of the Harley brand and will utilize the lesson and subject matter discussed in this course to explain how Harley economics relates to the modern day economics strategy. It will discuss demand and supply side and how Harley adapts to its clientele, how price is determine and the efficiency of this policy. Also, the Harley brand is affected by the same market indicators as most products. I will present a cost of production model that will simulate Harley’s production in a year to be determine. I will examine the overall market in which the manufactures competes. I will introduce market competition and how it affects the short and long term pricing of the products Harley produces. The Harley brand is successful because quality and brand recognition. I will discuss market barrier established by government or by the market themselves and how these barriers would affect the Harley market. Although, worker compensation is important to the complete financial picture of the Harley Corporation, it will not be discussed in detail in this paper.  Instead, I will focus on the overall wages paid to workers from Harley and its competitors. This will conclude the information contain in my paper, however I reserve the right to include additional subject matter if needed.