Main Competitors And Market Structure

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MAIN COMPETITORS AND MARKET STRUCTURE Ford has five major competitors and they are General Motors Corporation (GMC), Toyota, Nissan, Chrysler and Honda. Below is a comparative market share graph based on the U.S automobile market between the years of 2012-2013. From the graph it is clear to see that Ford has had, and probably still has, some stiff competition in the U.S automobile market; particularly from General Motors Corporation (GMC) which appears to have a noticeable market dominance and Toyota which is gradually catching up. As such, they are commonly referred to as the ?Big Three? by the Wall Street Journal. The reason Ford and its competitors have such a large influence in the automobile market; particularly in the U.S is…show more content…
Ultimately, Chrysler end up offering employee discount pricing as well. That, in turn, forced Toyota to respond by developing another unconventional strategy; which involved reducing the prices of its automobiles and providing contemporary financing terms. The reactions of Chrysler, Toyota and Ford to GMC 's unconventional payment strategy evidently influenced the end result of that strategy. This market structure is commonly known as an Oligopoly; of which Ford still utilizes to this every day. In an oligopoly, the market is influenced by a handful of firms, each recognizing that their own actions will bring out a response from its competitors and that those responses will have an impact on it. Therefore, the controlling firms recognize that they are interdependent; i.e., what one firm does affects each of the others. It is possible to compare this interdependence to the models of monopolistic and perfect market competition. To summarise, a perfectly competitive company reacts to changes in the market, not to the exploits of other companies whereas a monopolistically competitive company reacts to changes in its own demand, not to the exploits of certain competitors. However, in an oligopoly, the situation is much more complicated. This is because the interdependence of firms is the defining characteristic of the market. The main reason for this interdependence is because of the products Ford
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