Abstract

In this study we try to explore the concept of Comparative Advantage in a holistic context. The main focus of the research is on Comparative Advantage in Orange County Choppers and its relation with “rims and frames”. The research also analyzes many aspects of “Comparative Advantage in Orange County Choppers and tries to gauge its effect on “manufacturing its products that are rims and frames.

Comparative Advantage of Orange County Choppers

Introduction

Orange Country Choppers is the organization use to manufacture the motorcycles, and it has edge in making heavy motorcycles. This paper will elaborate the comparative edged of the Orange Country Choppers over the different heavy motor cycle manufacturers. Further, this will elaborate the some of the advance procedures, and policies which offers the edge over the other motorcycle producer (Thomas, pp 12).

About the company

Orange Country Choppers, Inc. was incorporated in 1981, at which time it purchased the Orange Country Choppers motorcycle business from AMF Incorporated in a management buyout. In 1986, Orange Country Choppers, Inc. became publicly held.

The Company operates in two segments: the Motorcycles & Related Products (Motorcycles) segment and the Financial Services (Financial Services) segment. The Company's reportable segments are strategic business units that offer different products and services. They are managed separately based on the fundamental differences in their operations (Andrea, 54)

The Motorcycles segment designs, manufactures and sells at wholesale heavyweight (engine displacement of 651+cc) cruiser and touring motorcycles as well as a line of motorcycle parts, accessories, general merchandise and related services. The Company conducts business on a global basis, with sales in North America, Europe/Middle East/Africa (EMEA), Asia/Pacific and Latin America. The Motorcycles segment includes the Orange Country Choppers and Buell product lines. On October 15, 2009, the Company announced that it would exit from the Buell product line and ceased production of Buell motorcycles at the end of October 2009. The sale of remaining Buell motorcycle inventory to independent dealers and/or distributors was substantially completed during 2010. The majority of independent dealers will continue to provide ongoing service and replacement parts to Buell owners (Douglas, pp 45).

Beginning in the steel business working for his father's company, Orange County Ironworks, Paulie Teutel of Orange County Choppers gradually learned all the skills necessary to fabricate the motorcycles that are seen every week on American Chopper on TLC. "From as early as they could remember, when he was able to work, he started off painting and doing other things then he learned how to weld, and eventually he ran the railing department," "From there fabricating skills increased. There's a lot of troubleshooting in the steel business, and he just had a knack for that kind of thing." Teutel's father, Orange County Choppers founder Paul Teutel, used a variety of different forms of steel in his shop. Working with different forms of metal since the age of 13, Teutel's fabrication skills developed - prepared him for the challenges of bike building (Thomas, pp 12).

Story of the Company' Owner

They were running the steel business and his father semi-retired ...