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The Incompatibility Hypothesis and the Automotive Sector: An Empirical Study
Current Issue
Volume 4, 2016
Issue 5 (October)
Pages: 123-126   |   Vol. 4, No. 5, October 2016   |   Follow on         
Paper in PDF Downloads: 31   Since Sep. 23, 2016 Views: 1024   Since Sep. 23, 2016
Authors
[1]
Martin Kaschny, Business Sciences, University of Applied Sciences Koblenz, Koblenz, Germany.
[2]
Daniel El Kohli, Business Sciences, University of Applied Sciences Koblenz, Koblenz, Germany.
Abstract
The aim of the present empirical study is to show that mathematical effects that may be relevant to the effect of "stuck-in-the-middle" contributory cause. The automotive industry is recognized as one of the largest and most important industries. This enormous volume and the concomitant dependence on upstream and downstream industries is called the automotive industry as the "industry of industries". There is no question what value content (competitive) hold strategies in the automotive industry. The objective is to exemplary review of salaried by Porter considerations. According to the incompatibility hypothesis, businesses should either pursue a differentiation or a cost leadership strategy or concentrate on focal areas. Businesses which don’t follow this principle, might have to face lower profitability. This article investigates the validity of the hypothesis by looking at the global automotive market.
Keywords
Incompatibility Hypothesis, Stuck-in-the-Middle, Profitability, Competitive Strategies, Automotive Sector, Strategy of Cost Leadership
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