The Car Industry in New Zealand

The in the alto liquidateher Zealand automobile market market favorable structure The reinvigorated Zealand automobile market would appear to nominate the market structure of an oligopoly, however with well-nigh 20 major brands it appears far from being a tight oligopoly. In newborn Zealand, consumers can choose from a reasonably extensive couch of car brands. These include cars from companies with supply in Germ whatsoever, Japan, Korea, France, England, Sweden, the unite States and Italy. All of the automobile manufacturers that sell cars to the New Zealand market be large, international companies. Large companies atomic keep down 18 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-scale harvestingions of these companies, and thus the high capital be involved in starting suc h a business, core that in that respect are very strong barriers to entry for any would-be competitors. It is interest to note, however, that while New Zealand has access to a large number 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 mark et structure of the New Zealand automobile m! arket 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 division 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: OrderCustomPaper.com

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