Economic Analysis on BMW Cars in the US Car Industry - Case Study Example

In the paper “The Global car industry Case Study” the author discusses the barriers to entry in the global car industry, which are high due to high costs of initial investment, required aggressive marketing strategy to combat incumbents, and required high costs of research.... In developing countries, governments are seen to strongly favor the development of the car industry as it generates revenue through taxes and employment.... Economic: The difference in the economic situation of various nations will be having different effects on the markets of the global car industry....

In addition, both organizations continues to transform itself to take advantage of shifting demand trends, focusing on client- and industry-specific opportunities, and business performance.... hellip; 'Daimler AG (formerly Daimler-Benz AG, DaimlerChrysler AG) is a German car Corporation (not to be confused with the British Daimler Motor Company) and the world's thirteenth largest car manufacturer as well as the largest truck manufacturer in the world This paper will look at Daimler AG Corporation and the BMW group; two automobile centric organizations that operate in competition with each other, in complete detail with insight into the background of the company and its sectors and recent activities....

hreat of new entrantsThe threat of new entrants in this segment is very low due to the many entry barriers that exist in this industry.... There should also be tremendous amount of tacit and explicit knowledge of products and constant innovativeness to compete in this industry.... With all the above barriers, few companies would look into entering this industry .... owever, there is the threat of companies already existing in the auto industry, entering into the luxury car segment....

From the above analysis and independent analysts' reviews (BMW AG) available from the company's website, it could be suggested that the company still has a strong position in the industry and it has carefully placed itself in the luxury car industry.... hellip; The author states that the reason for selecting this company for the current review is the corporate intelligence that is obvious from its strategic positioning in the automobile industry and its immense potential to grow and remain the market leader in the luxury cars sector....

The market is however, dominated by the few but very large players in the industry.... Since the market is rebounding from its earlier levels, there are signs of price wars in the industry as one of the largest suppliers in the market i.... There has been a surge of approximately 13% in the market during 2013 owing to cheap financing, growing confidence of consumers in the economy as well as better payment… An estimated car registrations of 2....

It is one of the greatest car manufacturers in the world, specializing in sports utility vehicles and luxury saloons.... In 2009, for instance, 144,133 car sales were registered.... Regardless, Jaguar is an effective innovation-driven organization in its internal processes, judging by the unique car designs created through innovation and seamless R&D processes.... However, since 2008 activities, the demand for Land Rover cars and sales immediately declined by almost one-quarter....

In 2009, for instance, 144,133 car sales were registered worldwide.... As a mechanical engineer I can attribute the innovation successes to unique car designs.... 5 billion in what was seen as a move to expand its production line and cut down on costs (Grant, 2010). JLR However, soon after the 2008 activities, the demand for Land Rover cars declined by almost one-quarter....

The term paper "The Global car industry Facing the Challenge" presents Analyses and critical evaluation of the competitive landscape under consideration in order to identify the prevailing conditions in the wider environment and the dynamics of the specific industry.... nbsp; In developing countries, governments are seen to strongly favor the development of the car industry as it generates revenue through taxes and employment.... Economic: The difference in the economic situation of various nations will be having different effects on the markets of the global car industry....