automobile industry - essay 1.docx - Catherine Corrigan Professor Malloy ECN 337 Market Power within the Automobile Industry BMW Group vs Daimler AG

automobile industry - essay 1.docx - Catherine Corrigan...

This preview shows page 1 - 3 out of 5 pages.

Catherine Corrigan Professor Malloy ECN 337 October 25, 2017 Market Power within the Automobile Industry BMW Group vs. Daimler AG Market power in many industries is higher than perceived, as most of society does not realize that only a select few larger corporations own a variety of different brands. This is the case within the automobile industry to a certain extent. Even though a select few larger firms own other brand name car companies, there are 14 major automobile companies around the world that own a combined 55 brands. This alludes to a greater amount of market competition in retrospect to other industries with maybe only three or four dominate companies. Two well known firms and leaders within the automobile industry is the BMW Group and Daimler AG; both of which focus on luxury cars. While both firms have headquarters located in Germany, their stocks’ are traded on the stock exchange: Frankfurt, which is the largest German stock exchange. The BWM Group has been known for their “outside of the box” methods of advertising, as they continuously innovate their product lines while keeping traditional well- known designs. Daimler AG focuses on product differentiation, and innovating the way not only luxury sports cars run, but the expansion of larger trucks for transporting goods. With impacts such as demand trends and sustainability, the automobile companies who are able to best adapt to consumer requirements will gain the most market power in the near future. The product lines, brands, and series produced by both the BMW Group and Daimler AG are extremely similar to one another. With this, both firms must compete highly against one another and perform continuous improvement. While the BMW Group, as well as Daimler AG,
Image of page 1
focus mainly on luxury quality automobiles, this slightly increases their market power in reference to their desired market segmentation. As a result of attempting to reach nearly identical target markets, BMW Group and Daimler AG act as strong substitutes of one another.
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 5 pages?

  • Fall '07
  • Ramsay

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes