Economics for Honda

Economic for Honda The United States has the highest car ownership rate in the world and American people are very qualified on automobiles. Therefore, car industry has been very large and cardinal part of the US economy. While the Big 3, General Motors, Ford, and Chrysler, watch been leading the market, a lot of foreign companies have united and grown. As a result, the Big 3 currently has less(prenominal) than 50 % of the market share. Honda is one of those foreign automobile makers. This paper describes its business, market structure, and elasticity of demand for its goods. Also, it identifies some issues impacting the business. Hondas briny business is to manufacture and sell automobiles, laborcycles, and power products. The groups major products include ACURA, CIVIC, ACORD, etc. The Group has subsidiaries throughout the world, including Japan, sexual union America, Europe, South America, China, India, and Thailand. According to Hondas annual report 2009, its ecumenic annual sales in these three years were 110,871million, 120,028million, and 101,916million dollars. Honda is the largest motor cycle and engine maker in the world. As a automobile producer, it is the 6th largest in the world and the 4th largest in the United States.

Market structure of the automobile market in the United States is the best described as Oligopoly because the industry is rule by a small number of large sellers. As of March 2010, market shares of the top 6 producers are; GM 17.6%, TOYOTA 17.5%, Ford 16.7%, Honda 10.5%, Nissan 9.0%, and Chrysler 8.7%. Also, they differentiate products by design, price, and quality to compete with the others. Moreover, it is nasty for a new company to enter the industry because it cost a lot to start the business, building new factories and it is firmly to compete with existing brands. Demand for Hondas automobiles is elastic because of three reasons. First, there are some substitutes, such as apply car and public transportation. People can choose to... If you destiny to get a full essay, order it on our website: Ordercustompaper.com

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