Ford and G.M. Lose Grounds to Imports Essay Example | Topics and Well Written Essays - 500 words

Ford and G.M. Lose Grounds to Imports - Essay Examplecompanies, which has resulted in dwindling of the grocery share of the Big deuce-ace, with particular emphasis on the car segment of the motorcar industry, and forcing the Big Three to respond in an attempt to hold on to the large trade share. In spite of such efforts the Japanese auto manufacturer Toyota in October 2004 forged its way into the top three largest auto sellers in the United States of America, displacing Chrysler from this esteemed position. This event has led to the speculation that the structure of the U.S. auto industry is likely to see a change, wherein Japanese auto manufacturers are likely to rub shoulders with the traditionalistic Big Three manufacturers of General Motors, Ford, and Chrysler. (1).The Japanese auto manufacturers have started edging towards and past the three big American auto manufacturers in terms of market share. There are two possible key factors involved in the pull of the American cu stomer towards Japanese auto products. The first is the Japanese auto products are more economical than the American products, which is related to the strategies employed by the Japanese in boosting the productivity of their employees and cutting manufacturing costs. In the current scenario of job insecurity, investiture in the purchase of a new vehicle is bound to be conditioned by the worsening economic scenario. The second possible factor is related to the rising costs of petroleum products. Japanese cars are less of gasoline guzzlers in comparison to the American cars, and with rising fuel prices and unstable incomes the Japanese auto products are more attractive to the American customers. This is reflected in the continuing rise in the sales of Japanese auto products in spite of the response of incentives by the American auto manufacturers. (1).Put in a nutshell, we may take the game theory as an attempt to explain the strategic actions in a competitive environment and the gai ns and losses that could emanate from these actions