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Published byRoss Porter Modified over 9 years ago
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Analysis of A utomobile Industry
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Introduction Oldest Biggest Most extended Ensuring the living of millions people The Automobile Industry
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History Year 1600: First vehicles to be propelled by something than animals or humans Year 1700-1900:Development of engines Year 1913:Mass production of vehicles Year 1930: New vehicle brands were developed Year 1940:Converting the production from civilian vehicle to military vehicle for the WWII Year 1980-Now: Modern automobile industry
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Prevailing Car Companies
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Porter’s Five Forces Model 1.Threat of New Entrants 2.Threat of Substitutes 3.Bargaining Powers of Buyers 4.Bargaining Powers of Suppliers 5.Current Rivalry
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Threat of New Entrants Concentrated and expensive market Brand Image Research & Development Cost & Time Configuration of retail distribution network
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1967 Inception 1999 Dismantled Daewoo Lifespan
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Threat of Substitutes Mass transport for area of huge density Habitations of different areas Variety from society to society Choosing alternate options for price hike
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Bargaining Power of Buyers Individual buyers have no power Customers’ power over the manufacture companies Price sensitivity Competitive price Availability of substitutes Loan facility
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Bargaining Power of Suppliers Operation on a global scale Manufacturers getting less involved Strong cooperation and intensive communication Direct suppliers are becoming large global firms
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Current Rivalry Oligopoly National Competitive Advantage Industry Overcapacity Diversification Of Model and Cars
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Automobiles Sold Worldwide in 2011
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Conclusion The average person can not come along and start manufacturing automobiles. Today’s successful companies share many common business strategies.
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Thank You All
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