Competitive groups in the automobile industry: a compared supply-demand approach

Abstract

This paper is a comparison of two different frames of reference in the definition of market positioning in the automobile industry: the dealers' and the consumers' viewpoints. The top 18 automobile manufactures were specifically chosen for this purpose and 211 managers employed by these manufacturers and 261 consumers that bought their cars last year were interviewed. Both subjective data collected by diverse means (classification, direct quoting and evaluation), as well as secondary data were used simultaneously for these two samples. The final result was to identify groups of competitors at two different levels: companies and products. To date, no study has applied these two viewpoints (managers and consumers) to the comparison of competitive structures (companies and products). The paper presents a complete picture of their possible interrelationship and finds significant differences in the size and composition of the competitive groups identified at these two levels.

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