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What Are The Advantages And Disadvantages Of The Automotive Industry

Decent Essays

Background of the thesis

The Central and Eastern European region has always carried huge potentials and various investment possibilities from the beginning of the early 90’s. This is especially factual for the automotive industry, which is considered one of the highest value added sectors of the economy, and the engine for economic growth. However, expected results have not been completely fulfilled in Romania. Since the fall of the communist era, numerous venture opportunities have appeared in the former Eastern European Block, though several difficulties, such as underprivileged infrastructure, obsolete technology and political-legal barriers, a number of multinational firms have entered the Central and Eastern European markets.
My scientific …show more content…

In order to emphasise and highlight the evolution and development of the production sector, I created sales and price figures and analysed previous studies. I also processed the relevant case studies with the purpose of investigating the development of the automotive industry, which allowed drawing conclusions on the automotive industry in Romania.
This work should serve as a good starting point for everyone interested in the topics such as market penetration, Romania’s automotive industry in a Central and Eastern European context. My research questions are the following what the advantages and disadvantages of the Equity Joint Venture (EJV) and Brownfield Acquisition are when entering a CEE automotive industry, and which major Multinational Enterprises (MNE) entered the Romanian automotive industry, in addition how the chosen market entry form influenced their success.
1.2. Scope and Relevancy of the …show more content…

The terminology used to denote the various types of business patterns or to describe identical or similar kinds of unit, since a reliable terminology proves the specialists’ constant interest in the study of market entry strategies, as well as their increasing awareness with reference to the frequent use of suitable arrangements in the automotive industry. Chapter 2 will examine the theoretical views in which the cognitive framework will provide the theoretical hypothesis, explicitly the privatisation process in the Central and Eastern European countries will be briefly presented, highlighting the importance of the reorientation of the host country’s stakeholders. Furthermore, the main concepts and terms of the thesis will be defined, followed by an attempt to give a glance, in a CEE context, of these market entry strategies. Chapter 3 is framed into an overall overview of the automotive sector, as well as its history and its main characteristics will be presented with the support of figures and tables. The analysis sustains previous conclusions about the connections between two major examples in order to see the theory within specific practical examples. At the end of the chapter, a conclusion will be drawn of the presented case studies of Renault and Ford, highlighting the importance of the auto industry in the

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