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The new cars market has a large number of buyers. Although switching costs are low, and buyers price-sensitive, manufacturers have invested in brand building, which further weakens buyer power. Key inputs include commodities like steel, whose price may be difficult for manufacturers to control, as well as more differentiated products, such as fabricated components, and labor.
The stagnation of major markets as a result of the global economic downturn, together with the high capital requirements for viable manufacturing scale, means that incumbents will generally not face much of a threat from new entrants.
Uploaded by: autoreliefgroup Added: 2 years ago
Views: 296 Thumbs: 0 Comments: 0
Tags:
new car
us car market
hybrid car
future car
auto industry
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