The Car Industry in New Zealand

The in the alto liquidateher Zealand automobile market market accessible structure The vernal Zealand automobile market would appear to thrust the market structure of an oligopoly, however with near 20 study brands it appears far from being a tight oligopoly. In sassy Zealand, consumers can choose from a reasonably extensive clasp of car brands. These include cars from companies with supply in Germ whatsoever, Japan, Korea, France, England, Sweden, the joined States and Italy. All of the automobile manufacturers that sell cars to the New Zealand market be large, international companies. Large companies are unremarkably present in an oligopoly. These automobile industry giants include companies much(prenominal) as Toyota, Nissan, Subaru, Mercedes-Benz, pass over, Suzuki, Volvo, Volkswagen, Mazda, Mitsubishi, Honda and Audi. The large harvestingions of these companies, and thus the high capital be involved in starting such a business, core that in that lo cation are very strong barriers to entry for any would-be competitors. It is enkindle to note, however, that while New Zealand has access to a large bite of different automobile brands, many of these brands are owned by the same parent company.

Examples of this include: - Ford owning Volvo, Jaguar and landrover - Toyota owning Daihatsu and Lexus - General Motors owning Holden, Daewoo, Saab, Daewoo and Suzuki - Volkswagen owning Audi, Rolls Royce and Bentley - Daimler-Chrysler owning Chrysler, Mercedes-Benz, Dodge and Mitsubishi This means that the market structure of the New Zealand automobile market is most definitely an oligopoly as there are! really only a few, credibly little than 10, very large sellers (the parent companies). As the advertisements hardened around this poster show, all of the automobiles are close substitutes. As a result, the automobile companies have taken to modifying and using product regeneration to differentiate their cars from those of their competitors. This is consistent with the feature of an oligopoly which...If you want to get a full essay, order it on our website: BestEssayCheap.com

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