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Industry Project Essay

  • Submitted by: rockinelocin
  • on September 21, 2012
  • Category: Miscellaneous
  • Length: 365 words

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Below is an essay on "Industry Project" from Anti Essays, your source for research papers, essays, and term paper examples.

NAPA oil filters are part of the filtration industry.

I selected this product/industry because I work in an auto parts store and have heard many conversations about brands and cross-referencing of oil filters.  

In the past, the demand for oil filters has increased because people have gotten more information about the importance of using a filter to ensure longer engine life.  

In the future, the demand for oil filters will go down because they are a compliment to cars.   Because the price of gas, also a complement to cars, is rising, people will drive less thus lowering the demand for oil filters.

In the past, the supply for oil filters has increased because new technology has allowed firms to build more efficient firms.  

In the future, the supply of oil filters will decrease because the natural resources, or raw materials will be getting used up and cause the cost of resources to increase.

On a scale of 0 to 10, the filter industry could be a 1 or 2 because, even though there is more than one firm that produces filters and there are several close substitutes, there is a barrier to entry.   Because there is limited access to the high grade deposits that filters are made with, the availability and location of economical deposits makes the filtration industry have a monopolistic side to it.

The pricing strategy used with oil filters is clearly pricing discrimination.   In the case of just NAPA oil filters, they sell the NAPA ProSelect silver and the NAPA gold.   The only difference between the two is that that the silicone-rubber anti drinback valve on the gold will last longer than the nitrile rubber valve on the silver.   However, if you change your oil the recommended 3 thousand miles, both valves work perfectly fine.   In most cases, when buying the Gold you are paying for more than you need.   The industry also uses price discrimination with the brands of filters.   NAPA Gold oil filters are regular Wix oil filters put in a NAPA box and sold at a...

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Industry Project. Anti Essays. Retrieved December 18, 2018, from the World Wide Web: http://parimatch-stavka7.com/free-essays/Industry-Project-311440.html


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