Automobiles

automobile Industry Hailed as the industry of industries by Peter Drucker, the launching father of the study of management, in 1946, the automobile industry had evolved perpetually with changing times from craft production in mid-nineties to mass production in 1910s to lean production techniques in the 1970s. The Asian countries, mainly by Japan, China and India, registered a 9% increase in production over last year, constituting 35.9% of the planetary production. In fact China and India posted positive produce rate over 2003. This supply mainly catered to meet the have from households where the automobiles constituted the second largest expenditure item next still to housing. Thus the global automobile industry dominated by Europe, US, Japan, and of late by China and India, continued to have a authoritative influence on economic development, international trade, contrary direct investment and environment-friendly practices. [pic] Total Sales Trend of Four-wheelers in India Porters Five Forces Analysis of Indian Automobile Sector 1. Industry Rivalry Industry Concent balancen: The Concentration Ratio (CR) indicates the pct of grocery store share held by a company.

A game concentration ratio indicates that a luxuriously concentration of market share is held by the largest steadfastlys - the industry is concentrated. With only a hardly a(prenominal) firms holding a large market share, the market is slight competitive (closer to a monopoly). A low concentration ratio indicates that the industry is characterized by many rivals, none of which has a significant market share. These fragmented markets are said to be competitive. If argument among firms in an industry is low, the industry is considered to be disciplined High fix costs When total costs are mostly fixed costs, the firm must produce capacity to attain the lowest social unit costs. Since the firm must sell this large quantity of product, high levels of production lead to a fight... If you want to get a full essay, order it on our website: Orderessay

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