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The automobile manufacturers' global competitiveness and dimension-effects: differentiation and cost advantages reconciled

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  • Loic Renard

Abstract

This paper points out the role of dimension-effects in the automobile manufacturers' global competitiveness. The approach proposed offers a new theoretical framework and determines the competitive advantages of the biggest automotive manufacturers. This study is founded on the author's original database. This paper shows that the main automotive manufacturers can combine the two factors of competitiveness, differentiation and cost, thanks to dimension-effects. The globalisation of this industry continues as the biggest competitors succeed the best in associating the minimisation of costs and the maximisation of differentiation, in the three forms defined, vertical, horizontal and spatial. Mergers and acquisitions are useful to achieve this as the biggest groups demonstrate. The Renault-Nissan agreement is a successful example.

Suggested Citation

  • Loic Renard, 2002. "The automobile manufacturers' global competitiveness and dimension-effects: differentiation and cost advantages reconciled," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 2(3/4), pages 280-304.
    • Handle: RePEc:ids:ijatma:v:2:y:2002:i:3/4:p:280-304
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