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Global Automobile Industry - Essay Example
Author : robelstone
Pages 7 (1757 words)
Globalization has brought with it a slew of strategic shifts in the global automobile industry during the past decade. Preceding this period of time, a series of dynamic changes took place in the automobile industry though such changes were less noted for their decisive history making trends by analysts…
The late seventies, the eighties and the nineties all were dominated by the Japanese manufacturers. Even in the 21st century this dominance is not only visible but disturbingly complex with geographical concentration shifting in directions that defy economic sense and reinforce the multinationals' perception of competition.
The automobile industry has some peculiar characteristics when it comes to the question of concentration. There is a common tendency for every industry to be agglomerated geographically. However the automobile industry has a typical tendency for such geographical agglomeration. For instance within the frontiers of a country, a regional concentration would mean many manufacturers of an industry concentrating their output in a particularly advantageous geographical region such as Detroit in America. The same region would act as a focal point for international companies, thus completing an international cycle of geographic attraction.
The automobile industry has some peculiarities in shifting the geographic epicenter of activity away from the initial centers of development to newer more demand-centric market-oriented regions in the globe. During the last three decades manufacturing centers have been shifted from low-cost, skilled-labour, market-centric regions to still low-cost, skilled-labour, market-centric regions elsewhere, e.g. ...