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  • Essay / Tucker: Tucker's Struggle in the Auto Industry

    Free Enterprise PaperWhen analyzing the film Tucker, it is easy to see that several external factors contributed to his struggles in the auto industry. The first was actually a mix of two threats, that of suppliers and that of rivalry. As the automobile industry reached the mature stage of the industry life cycle, there were three major automobile manufacturers that controlled most of the industry's market share. Because they had such a large market share, they also controlled much of the materials used to make an automobile, including steel. Tucker faced this challenge when he attempted to purchase steel to make his vehicles and learned that there was no steel to purchase because the big three already controlled all the steel available. Through the help of Howard Hughes, Tucker learned of a bankrupt helicopter manufacturing plant that had more than enough steel in its possession to make the cars Tucker needed. Tucker eventually gained access to the helicopter plant's steel, either through acquisition or merger....