Market Model Patterns of Change Research Paper Example | Topics and Well Written Essays - 1000 words

Market Model patterns of Change - Research wallpaper ExampleThe business expansion that has characterized many companies in the industry has led the expansion in the surface of large companies and eventual attainment of a competitive advantage over smaller companies. Currently, the industry is experiencing bulky changes as a result of changing customer needs, emerging food markets, and entrance of new competitors, technological advancement, and the severe environment regulations due to substance emissions (Blum, 2009). The changes have affected the demand, value chains and markets that characterize the industry. This has led to the faulting of the market into a more mobile model that is more competitive. The industry players and the new entrants have been oblige to apply new competitive strategies that will enable sustainable success in the competitive industry. Pattern of Change Both the emerging and mature markets in the automobile industry are characterized by attempt and opportunities. The worldwide automobile industries have engaged in price wars crating frequent capacity overlap and rivalry. Therefore, the oligopolistic market model has been transformed into a competitive model. The competitive pattern of change is evident in its production, transnational trade changes, and supply chain and pricing. ... However, the lowering of the trade barriers and advancements in globalization has changed the tradition whereby the production reparation decisions are influenced by the international competitiveness. The international competitiveness is a product of the level of different tasks inwardly the industry due to the vertical disintegration of global production. This is a change from the traditional business norms whereby the global competitiveness was determined by the level of the industry. Variation in return Table 1 illuminate 20 Motor Vehicle Producing Countries China 18,418,876 United States 8,653,560 Japan 8,398,654 Germany 6,311,318 South Korea 4,657,094 India 3,936,448 Brazil 3,406,150 Mexico 2,680,037 Spain 2,353,682 France 2,294,889 Canada 2,134,893 Russia 1,988,036 Iran 1,648,505 Thailand 1,478,460 UK 1,463,999 Czech country 1,199,834 Turkey 1,189,131 Indonesia 837,948 Poland 837,132 Argentina 828,771 Italy 790,348 Source http//oica.net/category/production-statistics/ Table 2 Annual Change in Production in Automobile Industry Year Production Change 1997 54,434,000 1998 52,987,000 -2.7% 1999 56,258,892 6.2% 2000 58,374,162 3.8% 2001 56,304,925 -3.5% 2002 58,994,318 4.8% 2003 60,663,225 2.8% 2004 64,496,220 6.3% 2005 66,482,439 3.1% 2006 69,222,975 4.1% 2007 73,266,061 5.8% 2008 70,520,493 -3.7% 2009 61,791,868 -12.4% 2010 77,857,705 26.0% Source http//oica.net/category/production-statistics/1999-statistics/ International patronage The international trade is characterized by the dominance from a small number of companies. However, the industry faces segmentation that has make it more regional than global. The in dustry is also characterized by cost pressures, overcapacity and low profitability