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if it is easy to get an industry thenas soon as profits look attractive , new firms will enter. if demabnd for the industrys product doesnt rise to match the increased capacity that entry has causedthen,prices,and with them profits ,are likely to fall.so the threat of entry places an upeer limit on an industrys profitability, so i would lik to know the threat of entry of mauti esteem in the car industry

2006-11-11 00:23:41 · 2 answers · asked by Anonymous in Cars & Transportation Car Makes Maruti

2 answers

Let me start by saying that Actually this segment is probably the least threatened, going by your definition of threat of entry.
This segment is poised to grow for at least another 10 years. Amongst the highest of middle class aspirations is to own a car with a boot. This should explain the success of the Indigo, even with all its initial quality problems. By 2010, they expect sales in this segment to surpass the B-segment of small cars. The real entry barrier is being able to start a greenfield enterprise with a new and relevant design, and being able to price it competitively. The Esteem is over 12 years old. All their production dies, etc have already been amortized

2006-11-11 12:55:18 · answer #1 · answered by WizardofID 3 · 0 0

GIT THE LONE GIT

2006-11-11 08:29:11 · answer #2 · answered by yeshpaltomer123 2 · 0 0

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