Assessment Activity 2

With reference to the item on the car industry and your own research, to what extent do you believe the degree of competition in the market is the KEY FACTOR determining the startegy adodpted by firms in the recession?

This question is not asking what strategies firms should adopt but, instead what factors influence the strategies they adopt.

Essentially you have to contrast the level and nature of competition experienced, with other factors that are influencial.

What we have looked at so far: -

From paragraph 1
Who the competitors are, where they are, and how they become competive (lower costs with labour plus the competitiveness of their exchange rates).

From paragraph 2
We identified that Europe was a developed market where mostly all those who want cars, and can afford them have them (a saturated market), plants have closed, reference to GM, and its UK subsidiary, Vauxhall.

From Paragraph 4
We looked at disposable incomes in the developing economies of S.E. Asia, as a driver of demand in that area of cars, and how economies of scale could be used, specifically technical economies if plant.

We put each paragraph has been put together as an analytical paragraph with, application appropriate to the context of the material.

Now over to you.