Economics for Business Essay Example | Topics and Well Written Essays - 1000 words - 1

Economics for Business - Essay Example (Monaghan, 2014) UK’s car market is the second largest market in Europe after Germany and therefore has a critical significance in terms of its contribution to the market. The market is however, dominated by the few but very large players in the industry. 2013 figures suggest that Ford emerged as one of the leading players in the market followed by Vauxhall and BMW. These brands are considered as the hottest selling brands with Ford Fiestas as the leading vehicle in the country purchased during 2013. Since the market is rebounding from its earlier levels, there are signs of price wars in the industry as one of the largest suppliers in the market i.e. Ford has started a fierce competition with the existing players in the market. It is also because of this reason that Ford Fiesta has registered highest number of growth in terms of units sold during 2013. Ford has been specifically offering deep discounts to the dealers on selling certain number of cars of its brands during the month. It suggests that Ford has been capitalizing on the growing opportunities and leveraging the same through the stronger incentives to the dealers. Other players such as Daewoo and Hyundai are also believed to be working towards matching such offers at EU wide level thus initiating price wars at the regional level. (News.bbc.co.uk, 2014) A closer analysis of the market would suggest that the market is being dominated by few but relative larger players in the market. UK Car market is dominated by both the local as well as international players. Local firms such as Vauxhall are also considered as the major players with firms like Ford, Nisan as well as Daewoo and Hyundai are also continuing to dominate the market. What is however, critical to note that none of these firms are actually the price makers as the overall demand depends upon certain other related factors such as availability of cheaper consumer credit and overall economic