The global automotive industry consisted of roughly 4.5 million enterprises and employed an estimated 2.7 million people in 2016 with a total turnover of $2 trillion that year.
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what type of market is car industry?
the car industry is a service type of market.
the car industry is a service type of market because in order to have a quality product- the cars, they need to be professionally serviced and cleaned. they also need upkeep so they can maintain their value and not depreciate in resale prices once they are bought from the dealer. in addition, businesses that specialize in remanufacturing or repairing autos rely on ancillary companies for items such as replacement parts as well as technical knowledge. this business lean heavily on each other to form a network that ultimately brings about an increase in worldwide auto manufacturing, which is essentially one of the most robust markets available today according to several different metrics..
a proper analysis will show that this
is automobile industry an oligopoly?
yes, an oligopoly is made of the few.
the auto industry has been historically one of the most concentrated markets. ever since gm dominated with their 77% market share in 1970 there have been fundamental changes to this dynamic within the industry itself, but outside competition for automobiles has never come close to catching up with them.
what is the market structure of the car manufacturing industry?
automobiles are manufactured in this order:
1. introduction of new models
2. production to meet demand growth
3. utilization of capacity to the economic limit
4. turnover of model lines because of changes in public taste or improved production methods
5. decline in existing model lines because they are obsoleteöany cycle will fit these five phases, although not necessarily in any particular order or duration at any one time. the shape of individual cycles can depend on how closely producers follow peak periods with slack times plus their expectations about the peaks and slumps ahead (balassa 1972). at least three types can be distinguished according to whether manufacturers successfully anticipate change, react too slowly, or fail totally (l