Channel Control in International Markets

Abstract

Spotlights the US passenger automobile market and the effect that foreign manufacturers have, by changing two elements of the marketing mix – the introduction of compact economy cars into the market plus the low initial price. Focuses on foreign auto manufacturers who have penetrated the US market with varying degrees of success. Aims to assess the control that a foreign automobile manufacturer exerts over his US affiliate and the affiliate's control over the remaining members of the channel of distribution. Examines data and method and discusses the findings which involve Volkswagen, Nissan and Volvo, and also Fiat, Mercedes‐Benz and Aston Martin. Investigates the various types of control these countries have over their staff. Concludes that US affiliates of foreign automobile manufacturers, both successful and unsuccessful, operate with a substantial degree of independence from their parent companies and successful affiliates. Concludes that US affiliates of foreign automobile manufacturers, both successful and unsuccessful, operate with a substantial degree of independence from their parent companies and successful affiliates exercise a major degree of control over dealers, which raises the sales of both the dealers and the company.