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The Japanese car maker Honda built a manufacturing plant in Ohio to start production on some of its popular models for distribution in the North American market. Since then, other foreign companies have also established manufacturing plants in North America to feed to demand for their vehicles. Foreign companies had many competitive advantages when moving in such as high quality standards, lots of capital and superior management skills.
Power of Suppliers
There are so many suppliers in the automotive industry that their power is quite low. The cheer size of the industry and each of its players is so big that any one of them can be a huge part of a supplier's business...
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