B2B Module 4 Discussion
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B2B Marketing
Module 4 Discussion
Utilize Porter’s five forces and the generic competitive strategies frameworks to analyze and discuss the automotive industry in the US. What are the major competitive forces shaping the industry? Are there any companies that use cost leadership, differentiation or focus strategies?
Porter’s Five Forces is used to analyze the competitive forces that help decide what an industry is good at and what they are bad at. The first force to look at is competitive rivals. In the auto industry, there are competitive brands such as Ford, General Motors, Chrysler, etc. It is competitive due to the costs and investments within the industry. The potential for new entrants is another force to look at. This is not as likely as the other forces due to various hurdles new companies have to jump
over. Supplier power force is important due to a supplier being a highly rated company who produces a part of a vehicle that is unique and hard to replicate at such a high volume. Customer power can be thought of to be of high importance due to the customer having the upper hand on the car companies. The threat of substitutes is the last force to discuss and can be seen as a threat to the auto industry. Transportation such as bikes, scooters, Uber, Lyft, public transportation is a
huge threat to auto companies. Cost leadership can be seen used by companies such as Hyundai, etc. to offer a more affordable option to the customer. Differentiation is used by companies such as Tesla. Tesla has separated themselves from other companies due to their focus on electric vehicle technology, etc. Focus strategy can be seen through companies such as Ferrari and Mercedes for their commitment to luxury standard vehicles with premium leather and features.
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