Home  /  Nova Scientia  /  Vol: 11 Núm: 23 Par: 0 (2019)  /  Article
ARTICLE
TITLE

KIA Motors Mexico: successful case of competitive strategy in a market of monopolistic competition, 2015-2018

SUMMARY

The article analyzes, theoretically and empirically, the importance of competitiveness, which is the basis for a successful entry inside automaker´s market with a structure of monopolistic competition on global scale, such is the case of the Mexican automotive industry. The mentioned business sector is an example of constant changes in its market structure with the recent entry of Korean companies which are Hyundai and KIA motors. The results demonstrate that since the entry of KIA Motors in July 2015, there was some market deconcentration in the industry, leading it to become the fifth largest assembler in Mexico. The graphic analysis of market shares indicates that Hyundai is less successful than its partner brand (KIA). However, the econometric results indicate that the deconcentration of the market is associated to a greater extent with the growth of the Hyundaís market share , as well as, the growth of smaller brands in its market quote that have longer time competing in Mexican market, comparing them to Korean companies such as Hyundai and KIA in Mexico. The results invites us to do a reflection on the classical assumptions about entry into a structure of monopolistic competition and its degree of concentration because it is commonly mentioned that entry of new competitors deconcentrates the market. However, if the rivalry increases, there will also be a bigger market deconcetration. It is concluded that in the Mexican automotive industry, the competitiveness and competitive strategy of brands (automakers), explain the concentration and performance of companies in this type of market.

 Articles related

Brianne Norris, Edward A. Laws    

University Lake, a shallow, artificial, urban lake adjacent to the campus of Louisiana State University, has a long history of water quality problems, including algal blooms, fish kills, and high concentrations of fecal indicator bacteria. Periodic dredg... see more

Revista: Water

Rezvan Zendehdel    

Outbreak of COVID-19 in different countries is an emergency in global public health recently. According to high spread of the newborn virus, airborne transmission potency of SARS-CoV-2 is possible. Until now, there are contradictory results for air evalu... see more


James Robbins Jewell    

The Boer War, which is frequently referred to as Britain's Vietnam or Afghanistan, was marked by gross miscalculations on the part of both British military and political leaders. In their efforts to subdue the Boer... see more


Eyad Balawna,Samir Suliman Yassin    

Passive diffusion Radon dosimeters containing CR-39 solid state nuclear track detectors of good quality were used to measure Radon and its daughter's concentrations throughout Rafah city. Our sampling strategy was to distribute the dosimeters in houses i... see more


Khalid Mehmood, Hamaad Raza Ahmad, Abbas Ali Abid, Ping Guo    

In recent years, Pakistan has experienced severe and persistent air pollution associated with urbanization and industrialization and it has substantial affects on ecosystem and air quality. In urban and peri urban areas, maximum TSP concentration was obs... see more