Car Industry Analysis

This paper examines the international industry dynamics of the car industry. The focus is on analyzing how the industry has undergone transformation since the 1990s to the present day with regard to competition between different players in the industry.

Question One:
Car industry dynamics The automotive industry started gaining momentum in the U.S during the 1890s, with Chrysler Corporation and Citroen being among the first automotive companies. At the time, the U.S only had few companies engaging in the manufacture of cars, including Thomas B. Jeffery Auto Company, Chrysler and Citroen Assembly Company. The automotive companies at the time experienced fast growth because of the high demand for vehicle across the world (Guajardo, Cohen & Netessine 2015). As the time went by, new companies started to emerge both in the U.S and other regions in Europe and Asia. The growth of new companies in various regions of the world did only affect the level of production in the U.S but also affected the market. It meant that the auto companies in the U.S had to engage in extensive research and rigorous marketing to compete against the rising stiff competition (Aghion et al. 2015). By the 1990s, new Auto companies had risen in terms of the rate of production and surpassed the rate of production of the U.S. Japanese …show more content…
According to Tang (2009), China experienced a sharp increase in it production of vehicle, to where it rose from producing 2 million vehicles in the early 1990s to reaching 9.5 units by the end of 2008. China started with the manufacture of commercial vehicles including vans and trucks before embarking to passage vehicles, which currently take approximately 65% o its production. The growth of the automotive industry in China surpassed the production rate of Korea, Germany, France and United States only closely followed by Japan (Tang,