GM is in the form of an oligopoly market structure this is where the companies are controlled by a few firms. This make it difficult for other firms to penetrate the industry because of the market barriers put in place (Dwivedi, 2010). In this market buyers are perfectly aware of prices, but there exist seller’s entry barriers. GM had been selling cars with faulty doors for the last three years. This is a clear indication that, GM market structure is not competitive. The situation is made worse by not having a firm that could have replaced GM faulty models. There is ...
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Introduction
During the early 1980s, the US auto industry was dominated by three domestic players, Ford, GM, and Chrysler. The import of cars into the US market was relatively less. The market penetration was relatively high in the car market. However, things started changing when the Japanese companies started exporting cars to the US market. In the first half of the 1980s, the market share of Japanese cars in the US market increased manifold. The market share from 17% in 1980 grew to 25% within a few years. Due to the increase in demand for Japanese cars, the demand for the ...
Introduction
During the early 1980s, the US auto industry was dominated by three domestic players, Ford, GM, and Chrysler. The import of cars into the US market was relatively less. The market penetration was relatively high in the car market. However, things started changing when the Japanese companies started exporting cars to the US market. In the first half of the 1980s, the market share of Japanese cars in the US market increased manifold. The market share from 17% in 1980 grew to 25% within a few years. Due to the increase in demand for Japanese cars, the demand for the ...