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Markets which require billions of dollars to compete in are not truly competitive. They may be competitive in a regulatory sense, but not in a practical one. An
by grumple 3y ago
Markets which require billions of dollars to compete in are not truly competitive. They may be competitive in a regulatory sense, but not in a practical one. And these markets have huge amounts of regulation as well that limits competition on top of the financial limitations on competition.
- konschubert 3y agoThe slim margins in the automotive sector would like to have a word with this argument.
- grumple 3y agoSlim margins say nothing about competitiveness. You can lose money in uncompetitive or competitive markets. You can have huge margins in competitive ones. Also I don't think the 10.5% profit margin of Mercedes is low - the average for the S&P 500 is 11%.
- LunaSea 3y agoThe 14.8B € profits in 2022 would also like to have a word with your "slim margins".