The Invention Of The Automobile Industry Essay example

1015 Words Oct 8th, 2014 5 Pages
The invention of the America automobile is commonly disputed, but it is evident that the creation of the automobile industry has made a significant impact on American history (Madden, 2003). The first automobile was made and sold by the Duryea brothers in 1895 (Madden, 2003). Since the creation of the first American automobile, the auto industry has seen numerous changes, and has evolved into an influential part of the American economy. Research has found that in the United States, the automotive industry makes up to 3.5 percent of its Gross Domestic Product (Hill, Menk, & Cooper, 2010).
Over the years, numerous changes have occurred and the auto industry has become a mature industry for consumers. A mature industry, defined as an industry with a saturated which has limited growth potential, and a low threat of new entries (Hill & Jones, 2014). While the automobile industry is viewed as a mature industry with barriers of entry, the 1980’s brought about much change to the auto industry (Holmes, 1993). The 1980’s brought about increased globalization, technological advancement, and environmentally conscious society. As a result of theses changes, auto industries have developed an opportunity for other companies to enter into the industry.
One of the newest companies that have overcome the barriers of entry was Tesla Motors. While Tesla Motors is a fairly new company, who has the potential to revitalize the American automotive industry. This study intends to review Tesla…

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