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An Empirical Analysis Of Market Structure And Competitive Behavior On A Class Car Market In China

Posted on:2009-08-08Degree:MasterType:Thesis
Country:ChinaCandidate:Y Y ManFull Text:PDF
GTID:2189360242482235Subject:Quantitative Economics
Abstract/Summary:PDF Full Text Request
China had become the world's second automobile output country in 2007, it's rapidly expanding car market has aroused the concern of all, it needs better grasp of the Chinese car market nature of the competition. In a competitive market environment, the market structure is not only determining factor in its absolute value but also the competition and related acts. For example, a rapid decline in the price of natural and associated changes in the prices of competitors. Managers should be aware that the company therefore competition law of nature. In this article, we will first entire car market to characterize the structure of these inevitable changes in the structure of the entire market changes and the manufacturers competitive behavior choice, because the article focused on the competitive behavior analysis will be used panel data analysis approach to the measurement of the price of China's auto market non-competitive conduct and price competition, the price of which we will structure the sedan market price index to better characterize the changes of prices, this will be conducive to better characterize the entire market patterns. In this paper, trying to get rid of the limitations of previous analysis methods, based on the use of econometric methods, the enterprises to quantify the depth of interaction between enterprises, thereby triggering find China's car industry over the past 20 years great changes in the theory and logical basis. The new theory of industrial organization within the industry and prevent the entry of brand diversification of the industrial structure of the system, such as the phenomena of collating, formed a strategic interaction between enterprises based on the analytical framework. This paper is focused on the car industry competitive behaviors and the industrial organization and the evolution of the role.This paper summarizes the theory of the predecessors', the car market is based on the German car market classification criteria for selecting which market is the most competitive and includes the largest category -A model cars market. According to China's economic development in this car market the price is between 8 to 24 million, which meet the needs of most consumers. Therefore category A car market changes in the market structure and competitive behavior of more practical significance. Market structure is a reflection of market competition and monopolize the concept is to determine the market price formation, so as to determine the competitive nature of industrial organization of the underlying factors. This paper is the most widely used common indicators. From the results of this paper, can be observed that China's car market in the Class A the market structure changes are the following characteristics: The market structure by 2001 nearly 100% but in 2007 it is 40% -50%, Before August 2003 Class A car market is the senior oligopoly-type market, mainly due to the automotive market is a need for economies of scale industries, and only some quite competitive, or state-supported enterprises to enter; from September 2003 to September 2007 is the medium oligopoly type, which was mainly due to intensified market competition, the number of factories of the Class A car market is from 7 to 23.The study on the car market competitive behaviors is focus mainly on the price competition strategies and non-price competition strategies. We first analyzed the different vendors at different times its price in the market positioning different groups of vendors such as Dongfeng positioning relatively high, and some less competitive manufacturers'lower prices. A class can also see competition in the car market also reflected in the entry of new firms from 7 in 2001 to 23 in 2007, the market competition is becoming increasingly acute. Competition in the market also reflected in the manufacturers'non-price competition strategy, mainly in the choice of products, as a measure of the quality of products more complex, where the main research product selection strategy. Products can be seen from 2001 to 2006 to 9 kinds of 53 kinds of products, we can see that the new product is the choice of manufacturers in market competition in the primary means of a special. For example, we can see Shanghai GM and the Dongfeng Yueda it has also added new products to get more market share.According to the above structure of the market and competition analysis, we use panel data measurement method, in accordance with the fixed effects model factors, the impact of A-type structure in the car market factors affecting manufacturers'market share model. Choose the main factors, it's the price index for manufacturers, the market price index, the number of market makers and the ratio of manufacturers of products in the market the ratio of the total amount of products four factors constructed in accordance with the size and market share of the market divided by time different groups of panel data model. Through the empirical results of the analysis, the following conclusions are:1 From the overall perspective Class A car market share of over 10%, that is, to enter the market in 2001 manufacturers such as FAW-Volkswagen, Shanghai Volkswagen and Dongfeng Shenlong its own market share by the price change is the positive relationship that For larger market share, access to markets earlier manufacturers can not rely on price cuts to maintain its market share. Market share and the market price changes is the inverse relationship, and that its market share of these companies do not have any other vendors of prices and lose market share. From the model analysis of the impact of such major manufacturers factors that the market status of the entry of new companies to carve up the market gradually to a high degree of market monopoly from the beginning has gradually changed, the lower monopoly.2.Class A car market share higher, and then went to the market companies such as Chery, FAW Toyota and Changan its market share changes and changes in the prices of manufacturers inverse, the manufacturers access to price competition strategy of increasing market share, and market price of a negative note the decline in the market price does not enable manufacturers lost market share, such companies to gain market share not only rely on their own price advantage, but also rely on the quality of their products.3. More competitive, later entering the market companies, such as Shanghai GM and the Dongfeng Yueda manufacturers market share price changes, changes in market prices and the manufacturers have not introduced into the relations and affect its market share the major factors manufacturers products accounted for all products in the market share of such companies that rely mainly gaining market share on competitive products to obtain consumers.4.The companies which is small market share and to enter the market later can not rely on low prices or product strategy to gain market share, The factors that decide the market share is not major factors in this paper The factors affect the search for relevance are not high.In short, competitive market structure and behavior of the correlation Class A car market between the measurement and analysis for the purpose of monitoring and operating decision-makers to provide a correct assessment of the structure of the automobile market and effective competition and the impact of factors, correct evaluation China's car market development characteristics.Car market structure and competition of this issue is a very complex issue, the history of China's automobile industry is still very short, to be added to some of the data can not fully access, in the next study of theoretical analysis and judgment also experience in practice needs further examination, in order to obtain more robust and accurate conclusion.
Keywords/Search Tags:Competitive
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