Question

Are all firms impacted equally by the conditions prevailing in the automobile industry? if not, why not?

Answer 1

Not all the firms are equally affected in the automobile industry.

the reason for this is manifold.
Effect of the conditions prevailing on a company depend on many factors such as market standing, adaptability, demand and innovative approach plus distribution models being followed.

If a company is able to adapt and innovate as per the conditions or market demand then that company is sure to be able to prevail much longer than other companies.
For eg. TATA motors is a huge name which had been trying to make its footing in the passenger car segment but had failed miserably in the past. The only reason it was able to survive was it was able to innovate and remarked its products as for commercial use like cabs and also it was able to innovate and produce a pocket friendly car which met the budget of a common India man. The company is still innovating and producing luxury and hatchback models in an economic range where middle income families can afford them.