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Monday, 28 January 2013

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Your NameYour Professor s NameYour ClassCurrent DateAnalysis of the US Automobile Industry as an OligopolyHistorically the move commercialize in the United States has been an oligopoly . For years it was prevail by the Big Three automakers - Ford , GM and Chrysler . More lately , it has been challenged by foreign automakers like Honda , Toyota and Nissan . Although with the entry of these Asian companies , the market place share of the Big Three has fallen in fresh years , the industry remains an oligopoly . It is only the status br of the players that has changedTo empathise the nature of the beast , one must understand the factors that drive any oligopoly . Its very essence is the fact that it is dominated by only a few companies that show exceedingly coordinated behavior (Kaplan ) Therefore , pricing , products , technology and yield remain relatively similar .
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It is not likely that separate auto manufacturers would elect to enter the market to compete with the elect few for a number of reasons . One of the foremost is the economical barriers for entry into the auto making industry ( The Industry vade mecum : Automobiles 22 ) New entrants find it hard to compete with the economic advantages to large scale production . Even though a new company may have innovative ideas that would acquire the consumer price-wise , the company would be taking on an upward make out to achieve and maintain its status in the industry . As a result it does not even enter the market or if it does attempt to...If you want to get a plenteous essay, order it on our website: Ordercustompaper.com

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