Kia - Pest Etc.

Based on some considerations above, the bargaining power of buyers on automotive industry is moderate.

From the last two decades auto industry is growing more competitive. Competition from the foreign automakers like Toyota and Honda is also high. In

The framework used in this note is organized around the estimates of industry demand, market share, costs, and performance. All data

Industry Growth………………………………………….10 Concentration………………………………………….….10 Differentiation and Switching costs……………………13 Scale Economies and Fixed/Variable Costs…………..13 Excess Capacity and Exit Barriers………………………14

These barriers include, but are not limited to, the following: large established competitors, high capital requirements, limited initial access to distribution networks, and environmental regulations. Due to the existence of massive brand name manufacturers like General Motors and Ford, any new entrants in the automobile industry will be competing with companies benefiting from strong customer loyalty, economies of scale, and impressive marketing budgets. Therefore, new entrants must be able to achieve the difficult task of entering automotive manufacturing at high capacity while simultaneously building a solid consumer base. Such an entry would be quite expensive, especially in conjunction with the billions of dollars needed to construct high-volume manufacturing facilities and develop effective distribution networks to deliver new automobiles. Finally, new entrants must be able to design and manufacture their automobiles according to contemporary environmental regulations. Abiding by such regulations would further drain new entrants’ funds. Overall, entering the automotive industry competitively requires an exorbitant amount of money, so the threat of new entrants is low.

After reading this report you will discover the Current Market Conditions Competitive Analysis for Sodexo. The reader will discover the history of Sodexo, Affect Demand, Supply, and Prices in the Market in which the Competitor Operates. The reader will understand the Market Product, Including Analysis Competitors, Issues or Opportunities that Affects Competitiveness and Long-term Profitability, Factors affecting Variable Costs, Including Productivity, Factors affecting fixed

Global competition in the industry: There are many vehicle manufacturers throughout the world. A few common vehicles seen in my state are GM, Chrysler, Lexus, VW, Honda, Toyota, Ford, and Jeep. Each company tries to stay ahead of the rest. Toyota, based in Japan, for example was one of the first businesses to introduce hybrid vehicles. This was a direct result of the oil embargo. After having three oil shortages automobile manufacturers are creating more fuel efficient, environmentally friendly products.

The industry for superior luxury cars is a highly exclusive one with a few automotive makers making their presence felt. The major market share is held by Porsche which is known to have formidable rivals like Benz and BMW. The SUV supercar segment is a highly evolving one where manufacturing style localities and units are the decisive forces that ultimately culminate towards the cost of the car.

The automobile industry in the United States is staying competitive. The United States automobile market has done its best to compete with their foreign competitors. However, the foreign automobiles are loved by the US people. On the streets, many foreign automobiles are out there and many people enjoy these foreign vehicles. I personally love Toyota and have owned more foreign vehicles in my life time than I have owned US vehicles. According to the article, “More Americans Buy Foreign Cars”, General Motors stays competitive by offering incentives and competing with foreign automobile incentive. However, despite GM offering incentives, their GM sales were down. Chrysler has also remained competitive by offering zero-percent financing

4. An analysis of the industry, i.e., degree of competition, growth of industry-wide sales, profitability of competitors, life cycle stage of the industry, Porter’s five factors, and P/E ratios of competing companies.

Competition is good for producers but better for consumers, more competition in the market means more: ideas, channels of distribution, market stability and competitive (lower) prices for consumers. Ultimately, healthy competition forces producers to offer better products and services at lower prices. Automobiles provide people with “…aspirational value in addition to a basic mode of transportation…” (Reinhardt, Yao & Egawa, 2006) consumers make purchasing “decision based on the styling, color, and concept of the cars in addition to functions and pricing” (Reinhardt, Yao & Egawa, 2006). So far, TMC has been trying to catch up with Honda and Nissan in the ‘innovative’ department. Let’s not forget the criticism the company previously faced for offering its customers “…proliferation of look-alike cars…and following rather than setting a trend” (Reinhardt, Yao & Egawa, 2006).Since, Mr.

The current structure of the US auto industry is a who’s who of Fortune 500 companies, with long track records of success, and gold mines of innovation. The current market structure in place has many of the same foundations as the industry of the pre World War II era, with some important foreign additions from Japan and other countries (“Markets Data Center”, 2011).

Over the years, the U. S. auto industry's market has been experiencing fluctuations due to many reasons including: price, quality and foreign competition. General Motors Corporation (GM) which had been the leading car and truck manufacturer had been experiencing declining market share and facing stiff competition from both U.S manufacturers and foreign imports such as the Asian auto producers that included Toyota, Honda and Nissan. The main reason for increased foreign competition was that foreign cars were more fuel efficient, smaller, less expensive, and often more reliable than their American counterparts.

It has made its name in the global market and has given a good competition to other companies in automobile sector.

KIA, which means “arise from Asia” in Korean, started out making bicycles prior to World War II (Kia Motors Corporation, 2008). The company developed the manufacturing of steel bicycle tubing into a multi-national corporation producing cars and trucks. Prior to merging with Hyundai in 1998, Kia was the second largest producer of vehicles in South Korea (Kia Motors Corporation – Company Profile, Information, Business Description, History, Background Information on Kia Motors Corporation, 2008). Examining Kia’s transformation in a country lifting itself out of the