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Competition and product survival in the UK car market

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Abstract:

The paper examines the extent to which inter- and intra-firm competition influenced the survival of cars in the UK market between 1971 and 1998. It is shown that, while competition influenced product survival in all market segments within the UK car market, the nature of that competition differed between them. In the small family and large family car segments, intra-firm competition dominated inter-firm competition. In contrast, in the luxury/sports car segment only inter-firm competition conditions resulted in product survival. Evidence was also found that the luxury/sports car segment has grown more competitive over time and that firms marketing products in the family car segments have become considerably more successful at avoiding the effects of intra-firm competition.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840500293656

Affiliations: 1: Dpto de Economía Aplicada II (Estructura Económica), Facultad de Ciencias Económicas, University of Valencia, Avda del Tarongers s/n, 46022, Valencia, Spain 2: CIBH, Department of Management, University of Reading Business School, Reading, UK

Publication date: October 20, 2005

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