Competitive Strategies and Government Policies
Ben ?, Patrice Frazier, Lorna Anderson, Tamara Sistruck
ECO/365
Instructor: Patrick Callihan, Dr. ENG
Competitive strategies and government policies are an important factor in any market. Understanding the concepts that go into entering the market of auto manufacturing, and the industry for a highly known maker will be described in detail to gather a better grasp on the topic. New companies entering the market including profit, any supplier or anyone involved, mergers and type of mergers individually have to abide by some type of regulation and government policy. Globalization and the effects on pricing, and price sustainability of profit and those mergers are an important piece to understand in the topic of Honda and their automobile industry and how it works for those innovating and running the business. The demand on a vehicle that has efficient fuel economy seems to be increasingly important among the economy. Continuously rising in the market for automakers can be challenging as these elements are strategically supported to progress in this market.
The global automotive industry offers plenty of business drama, and Fiat’s recent purchase of Chrysler’s assets, one of the United States “Big Three” automakers, is enough of drama to produce a trilogy at the theater, with each movie running for two and a half hours. This horizontal merger, or partial horizontal acquisition, entails the United States (US) Governments involvement with its ailing domestic automotive industry.
At the core of this merger is the inability of the US automakers to match the aggressive technological advancements of its global competitors like Fiat. Small, fuel-efficient cars are expected to save Chrysler as the following statement explains:
"Work is already underway on developing new environmentally friendly, fuel-efficient, high-quality vehicles that we intend to become Chrysler's hallmark...