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Together with Harley, there are around 160 motorcycle companies operating on the global market including familiar competitors like BMW, Kawasaki, Honda, Ducati, Suzuki etc. The freedom of entry is not restricted which means that every company is able to enter the market. Something that Harley is special about are their unique bikes by terms of style and sound which makes Harley different from the competitors on the global market. However, there are companies that produce similar motorcycles as Harley and the most popular among them are: American Choppers, Victory and J&P motorcycles. Harley, of course, has control over the price but considering the global market, demand curve for Harley motorcycles is relatively elastic because if Harley charges price too high, people can substitute and buy other brand. However, this doesn't always have to be true because there are Harley Davidson "fans" that are ready to buy Harley at any price. Having considered and examined all of these, we conclude that Harley Davidson operates under monopolistic competition.

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Q: What kind of market structure is Harley Davidson?
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