Competitiveness in the Auto Industry and Market Entry

The auto industry ranks as one of the most competitive and among the most concentrated industry around the world. This high level of competitiveness has seen to it that there are few players who continuously dominate different sections of the market. The uniqueness of the industry is also dominated by other factors that influence how companies will adapt to their customers market needs. For instance, the need for the companies to accommodate economies is one of the most significant factors. Usually companies have to factor into consideration that as they venture in the new markets, they will have the capacity to invest and reap the benefit out of the existing market. Usually, such investments come at a heavy cost that can only be arrived at by highly wealthy individuals. As Barnett (2016) explains access resources such capital is a huge factor that comes at a cost for these car makers

For those companies that succeed to entry certain markets and fail, there are high sunk costs a...