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Economics/ Competitive Strategies and Government Policies

In: Other Topics

Submitted By latestudent
Words 1813
Pages 8
Started over one hundred years ago in Germany and France the automotive industry has become a major source of industrial and economic stability worldwide. In this report we will describe how the auto industry is affected by new companies entering the market, mergers, and globalization, on pricing and the sustainability of profits. We will explore mergers and merger activity within the industry as well as current and expected government policies and regulations in place to address issues related to externalities. We will also take a look at the effects of global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in the auto industry. Considering the aforementioned topic on the auto industry’s competitive strategies and Government policies you will say that this report aims to explain how these two areas have impacted the auto industry and will affect it going forward.
Globalization
Increasing globalization in the automotive industry is changing the way of traditional partnerships. Ten years ago, it was questionable to pursue business in markets such as India and China because political and business conditions were not conducive to direct foreign investment (Emerging Markets, Emerging Opportunities , 2012).As a result, many automotive companies such as General Motors, Toyota, Honda and Ford viewed strategic partnerships as a way to dip their toes into the water and expand into different markets. Given today’s evolving business considerations during the rapidly changing world of the global automotive industry and technology industry, it is an opportune time for companies to study the agendas and structures of their existing partnerships. The end result is different than it was 10 years ago; those companies that fail to define objectives or consider the opportunities associated...

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