Market Model Pattern of Change

1622 Words7 Pages
Market Model Pattern of Change: Automobile Industry Presented By Name Institution Instructor Course Title Date of Submission Abstract Automobile industry is one of the oligopolistic industries that have experienced a change in its oligopoly market model. The pattern of change is evidently shown in its production, supply chain, pricing, and international trade changes. The paper examines this industry and explains the pattern of change and other aspects within the industry. Industry description Automobile industry is one of the most global oligopolistic industries. Products in this industry have spread throughout the globe, and a few numbers of companies with worldwide recognition have dominated it. However, the industry is facing historical changes that are resulting from changing customer needs in the triad and emerging markets, technological advances, entrance of new competitors, and the ever-tightening emission standards. These changes have affected the demand, margin structures as well as value chains in this industry. As a result, the market is changing to a mobility market, which is more competitive, and the industry structure is changing and more importantly, the market model. This is forcing market players and new entrants to change market framework in order to achieve sustainable success. General pattern of change of the oligopoly market model of automotive industry The current global automobile industry is full of risks and opportunities evident in both mature and emerging markets alike. Currently, the industry has entered in the hold of a worldwide-price war with too much redundancy, capacity, overlap, and too many rivals. This has resulted to change of its oligopolistic market model towards competitive market model. The pattern of change is shown by the changes in industry’s production, supply chain, pricing, and
Open Document