I need help with a Current Market Conditions Paper only of no more than 850 words analyzing the current market conditions of the Auto industry with no plagiarism to do my power-point slides(Iâ??ll do the PWP). Make sure to list all the references. Address the following topics: SEE BELOW
â?¢ Supply and demand analysis
â?¢ Price elasticity of demand
â?¢ Cost structure
o Wages and benefits
o Fixed and variable costs
â?¢ Productivity: Consider the law of diminishing marginal productivity.
â?¢ Effect of government regulations
Supply and demand analysis:
In terms of demand, the auto industry is still under considerable pressure due to various factors. The developed economies, although slowly reviving, still hasn't shown clear signs of revival for the auto industry. The demand for automobiles in emerging markets such as India have been hampered due to rising fuel prices as well as declining growth rates. Factors like credit crunch continue to affect the demand for automobiles.
The supply situation due to Tsunami and Earthquake in Japan was hit as Japan is one of the largest manufacturers of cars, but situation seem to be normal now. The poor demand has forced carmakers to pile up on inventory or cut down on production.
The demand is more for smaller and fuel efficient cars as fuel prices continue to hit all time highs. The demand for luxury and inefficient vehicles are slowing down.
Price elasticity of demand:
Consumers have ...
Current Market Conditions Paper only of no more than 850 words analyzing the current market conditions of the Auto industry.