Economic Analysis of Timberland

2971 Words Jun 4th, 2006 12 Pages
Economic Analysis

History of Timberland

The birth of "Timberland" begins with Nathan Swartz, a young boot making apprentice ‘stitcher ' in 1918. At ten years of age the owner of the Abington Shoe Company took a chance and hired a much-needed young helper to learn the craft of boot making. Nathan 's job responsibilities included stitching seams, cutting leather, attaching soles and perfecting the art of boot making. Thrity-four years later, Nathan furthered his interest in boot making by purchasing half of the Abington Shoe Company. In 1955 he purchased the remaining 50% of the company and made it a family owned business.

From 1918 to the late 1950 's waterproof boots were not quite waterproof. Think about it, can a boot really
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It is synonymous with prestige, quality and excellence. Timberland is the name of their original waterproof leather boot and because of its vast popularity, the name of the company was officially changed to the Timberland Company. Because the Timberland boot is the top seller, we will focus on that particular product in this portion of the paper.

The Timberland has always been a very popular boot and is still one of the most popular brands of boots. Not only are Timberlands popular amongst many blue-collar workers such as construction workers, exterminators, plumbers, but they are also popular in the urban community for style and fashion purposes. The city of Philadelphia is a perfect example of a community where the Timberland boot is very high in demand amongst the urban community. These boots are sold all over the city in local and mainstream footwear stores all over the city of Philadelphia in all varieties and colors. Here is the elasticity demand table for Philadelphia for the Timberland boot.

Price Elasticity of Demand for the Timberland Boot in Philadelphia
Total Quantity of The Timberland Boot Demand per Week, in Thousands Price per Pair of Boots Elasticity Coefficient (Ed) Total Revenue, in Thousands Total Revenue Test
1 145 145
2 135 8.25 270 Elastic
3 125 5 375 Elastic
4 115 3.5 460 Elastic
5 105 2.2 525 Elastic
6 95 1.8 570 Elastic
7 85 1.3 595 Elastic
8 75 1.2 600 Elastic
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