Analysis of Car Industry in the Uk

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Analysis of car industry in the UK Recently, the surge of economic failure influence Britain's car industry deeply. And what really disappoints the industry is that increasing cost of motoring such as fuel costs make the situation worse. As the result of few new car brand enter in the market and second hand car market become prevalent now, competitive effects actually have changed to be more actively. This issue of the car industry arises even if there are rare evidence illustrate that recovery exists in car industry of UK (Neil, 2012). With accelerating of people’s income; buying a car is likely to be a popular tendency. This is which had provoked the world car industry’s development effectively in the past few years. However, it seems not that easy for a new car company to enter in the car industry which has grown for a long time before, And now the car industry suffer an challenge about higher cost but lower clients. And the reasons of barriers are sufficiently supported by following issues: the powerful companies which possess a large amount of customer; the quiet high cost of the company; Government promotion in environmental protection. People mostly trust a brand which they bought and feel satisfied before, so they rely on the car of a stable brand; which means they will probably not change their direction of car brand when next time they want to buy a new one. Recently, it (Mintel, 2011) has been reported that hydrocarbons' price is rising, it lead to a same increase in petrol's price which related to car driving. This cost problem can be thought of a major disaster to this market. VAT also can be considered as a cost problem, and it is a barrier of many potential clients. And the number of obesity people has been proved that increased, so many people who want to buy a car may change their mind to walk. This also can be one reason of reduction in
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