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Economies of Scale in the Automobile Industry Questions

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the article, “The Hybrid Trap…,” and the brief case, “What Business is Rivian In?

Please prepare a writeup of a minimum of 1000 words (total) addressing the following case discussion questions:

1. What role do economies of scale and scope play in determining the current profit model for internal combustion engine (ICE) auto manufacturing? Why have no new North American auto manufacturing entrants survived in North America over the past 60 years.

2. How will electric vehicles change the competitive dynamics of the auto industry? How will autonomous driving software affect the future growth of demand in the industry?

3. What is the optimal market entry strategy for a new electric vehicle (EV) auto manufacturer like Rivian? Why will niche markets prevail?

4. What barriers and related risks still exist for new EV auto manufacturers? Why does Rivian’s current multi-market approach pose a material risk for its future survival and profit model?

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