Business Analysis: The Car Retailing Industry

 New-Car Dealers account for an estimated 30% of all units sold in a given

Threat of new entrants is relatively low. There are high barriers to entry in the discount retail market, including high capital costs, limited access to investors, and a largely crowded-out market place.

Threat of new entrants: Retail industry has a higher barrier to entry. First, it is difficult to work out a good value chain as it involves a complex process. Second, it is difficult for new entrants to gain competitive advantage and earn above-average returns in such a highly competitive market. Besides,

For as long as I can remember, I have always been intimidated by the thought of purchasing my next car at a car dealership. It all seems so, let’s just say, overwhelming. The masses of car sales people scrambling around you trying to make the next sale. The huge clutter of vehicles to choose from and I cannot decide which one to get. The staggering pressure to make that final decision. Could anything be worse? The day finally arrived when I had to make a venture into what seemed liked chaos. Pulling into the parking lot of the car dealership I was astonished at what I saw. I had to ask myself, were my preconceptions of a car dealership accurate?

Well-established and enjoys a good reputation and good relationships with its retailers. A respectable name in the industry is very important when it comes to standing out from the competition and contracting with different retailers.

Are new cars better than used cars? Well, it depends. The average used car costs less than half the average new car. Therefore, it is no surprise that used cars outsell new cars 3-to-1. Typically, used cars are a better value. Not only are they cheaper, but also depreciation is less of a factor (someone else had to lose 10% to 20% of the car's value when they drove it out of the dealership lot). However, now a perfect storm of events in the industry have put monthly payments for some new vehicles on par with (or, in some cases, even less

Traditional retail stores cannot strictly be classified as competitors, because of their different operating methods. While retailers rely on consumers setting foot into their stores, Calyx & Corolla reaches out to its target market by way of catalogs, telemarketing, and in some cases, promotional tie-ins with selected retail stores. Even the approach of FTD follows more closely the traditional retail model than that of Calyx & Corolla. It is precisely for this reason that Ruth Owades saw an opportunity to delve into an unexplored market. However, while Calyx & Corolla enjoy a much higher operating gross per sale,

Factors that can limit the threat of new entrants are known as barriers to entry. In this case barriers to entry are low because: there is no government intervention to prevent businesses from entering the industry, resources are abundant, and customers’ switching costs are low as well as fixed costs to start this type of business.

Threat to new entrants: There is no barrier to entry in this industry but it might be difficult for newcomers to compete against existing well establishing companies.

It's extremely hard to arrange a decent arrangement from an utilized autos merchant, and shockingly a considerable number individuals are essentially ripped off. These merchants are specialists. Possibly in the event that you purchased the same number of autos as they sold, at that point you too would turn into a specialist purchaser and have the capacity to win on every one of your arrangements. For the greater part of us notwithstanding, the utilized autos merchant is somebody we may see each couple of years, when it is the ideal opportunity for a vehicle overhaul, which is not really enough time for us to hone our purchasing abilities. Notwithstanding purchasing new autos can have its issues, however utilized autos are a minefield for the ill-equipped and the unwary.

The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.

Barriers to Entry: The entry barriers in the market are relatively low, making it easy to access. However, as the market is saturated it could be unlikely for new companies to decide to start new enterprises in this field.

The industry I have chosen for my paper is the Specialty retail industry or the clothing industry which has the SIC code of 5651. This industry consists of companies that are primarily in the business of clothing and accessories for men, women and children. These companies include unisex clothing stores and jeans stores for all ages instead of stores aimed at a particular age group or sex.

Throughout the 20th century, GM, Ford, and Chrysler have held a firm grip on the U.S. car market. GM even was even able to control 50% of the market until about 1980. Ford and Chrysler also did considerable well during that period. However, globalization allowed foreign carmakers to maneuver their way into the U.S. market. Intensified competition then began to threaten the market shares of those leading companies. German companies entered the market with cars like Volkswagen, Daimler, and BMW. They now currently own Porsche and Audi. The Japanese car industry have the luxury of owning cars such as the Honda, Toyota, and Nissan while Koreans have joined the market with

Competitive rivalry exists between companies with the same or similar products/services and similar markets. Factors to be considered include: