The competitive landscape in the global automobile industry is as such that buyers in the cars as well as the motor cycle segments of the automobile industry are mostly large companies which yield power in the industry. Their significant value and power in the industry enables requires a stronger and more powerful industry standing to counter the buyer power of the customer’s the strong brand image and power accumulated by the automobile giants over the period of year has led weakening of the buyer power.
However the rising oil prices in the market as well as the increase faced by the automobile industry in terms of its raw material costs has increased the pressure that is being exerted on the manufactures and supplier sin eth automobile industry. As a result the manufactures of the automobile shave gone into contracts with the dealers in the market to sell the automotive vehicles to them at wholesale prices. “A number of market players have integrated forward into retailing as well as manufacturing their automobiles, putting pressure on buyers. For example,Toyotaowns a number of dealers, although it does continue to sell to independent retailers. Furthermore, a number of retailers have become franchised dealerships that have contracts with one manufacturer. Such retailers are highly dependent on one market player, thus buyer power is reduced. Overall, buyer power in the global automobiles industry is moderate.” (‘Automobiles Industry Profile: Global’, 2008)
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