Market structure analysis is essential when a business sets prices based on market-driven approach. It is the examination and evaluation of the characteristics of a market, including degree of product differentiation, and the relative power of buyers and suppliers. This analysis helps to understand the dynamics of a market and identify the potential for firms to achieve profitability and market power. Which one of the following is NOT relevant to the market structure analysis for Electric Vehicles makers?

Tesla has adopted a unique approach to securing batteries for its electric vehicles by producing them in-house. This strategy involves Tesla designing and manufacturing its own batteries, which it calls the "Tesla Battery." In addition to in-house production, Tesla has established partnerships with several battery suppliers, including Panasonic, LG Chem, and CATL. These partnerships involve Tesla working closely with the suppliers to design and manufacture batteries that meet its specific requirements.

The number of competitors in EV industry varies depending on the market segment. For example, in the luxury electric vehicle segment, the main competitors are Tesla, Audi, and Mercedes-Benz. However, in the economy segment, there are more competitors, such as Nissan, Chevrolet, and Hyundai. Therefore, the number of competitors in the electric vehicle industry varies depending on the price segment and geographic location.

There are several barriers to entry for new suppliers in the electric vehicle market. One of the primary barriers is the high cost of research and development required to develop new technology and compete with established companies. Another barrier is the high cost of production and the need for significant capital investment. Additionally, there are regulatory barriers, such as government subsidies and tax incentives, which can favor established companies over new entrants. These barriers make it challenging for new suppliers to enter the market and compete with established players.

In the electric vehicle market, the competitive products differ in terms of technology, features, and pricing. For example, Tesla's Model S is known for its longer range, while the Chevrolet Bolt offers a more affordable price. Similarly, some electric vehicles prioritize performance, while others prioritize energy efficiency. Therefore, there is a relative similarity of competitive products, but there are also distinct differences between each product.