Initial investment: The only way for a company to enter the market, they need first for R & D is significant is probably in the automotive industry at the moment but not in the luxury car industry. This is the approach used some of the largest auto companies in the past. For example, Toyota and Honda, respectively, the brands Lexus and Acura. Economies of scale: companies that have a permanent place in the luxury car industry reached almost perfect yield economies of scale. Public Policy: They are strict regulations in the introduction of an industry before an industry. If companies that has been in the automotive industry, it is easier for companies to transition, for example, the automotive industry value the luxury car industry.
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