Your NameYour Professor s NameYour ClassCurrent DateAnalysis of the US Automobile Industry as an OligopolyHistorically the machine merchandise in the United States has been an oligopoly . For years it was predominate by the Big Three automakers - Ford , GM and Chrysler . More tardily , it has been challenged by foreign automakers like Honda , Toyota and Nissan . Although with the entry of these Asian companies , the marketplace place share of the Big Three has fallen in late(a) years , the exertion remains an oligopoly . It is only the status br of the players that has changedTo take care the nature of the beast , one must understand the factors that drive any oligopoly . Its very essence is the fact that it is dominated by only a few companies that put down highly coordinated behavior (Kaplan ) Therefore , pricing , products , engineering and takings remain relatively similar .
It is not probable that some other auto manufacturers would elect to enter the market to compete with the elect few for a number of reasons . unrivaled of the foremost is the frugal barriers for entry into the auto making industry ( The Industry enchiridion : Automobiles 22 ) New entrants find it bad to compete with the frugal advantages to large scale production . charge though a new company may pretend innovative ideas that would profit the consumer price-wise , the company would be taking on an upward agitate to achieve and maintain its sta tus in the industry . As a result it does no! t even enter the market or if it does attempt to...If you want to realize a plentiful essay, order it on our website:
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