Global Automotive Industry- Porter's 5 Forces

Porter has identified five (5) competitive forces that shape every industry and every market. The forces determine the intensity of competition and hence the profitability and attractiveness of an industry. Based on the information derived from this analysis, management can decide how to influence or to exploit particular characteristics of this industry.

Public transportation provides numerous positive attributes to the community at large. It enhances personal opportunities by providing personal mobility and freedom, gives people transportation options to get to work, go to school, visit friends, or go to a doctor’s office, provides access to job opportunities. It saves fuel and reduces congestion, provides economic opportunities and drives community growth and revitalization. Statistically, every $1 invested in public transportation generates approximately $4 in economic returns, every $10 million in capital investment in public transportation yields $30 million in increased business sales, every $10 million in operating investment yields $32 million in increased business sales, and from 2006-2011, residential property values performed 42 percent better on average if they were located near public transportation with high-frequency service. Public transportation saves money and reduces gasoline consumption. According to APTA’s transit saving report, a two-person household can save, on the average, more than $10,174 a year by downsizing to one car. Public transportation use in the United States saves 4.2 billion gallons of gasoline annually and households near public transit drive an average of 4,400 fewer miles than households with no access to public transit. Public transportation also reduces the carbon footprint in that its use

Transportation in the region has a long and successful past. However, public transportation has consistently taken a back seat to the personal automobile. There has been a strong core of persons who rely on public transportation to achieve mobility, and governmental

Porters Five Forces model evaluated Actual competition, Threat of new entrants, Threat of Substitute Products, Bargaining Power of Suppliers, and Bargaining Power of Customers. Actual Competition in the Luxury Recreational Vehicle industry is mixed due to low switching costs, constant growth, and high differentiation among products in the industry. Threat of New entrants in

Though there are alternate means of transportation such as carpools, buses, or simply walking, these alternatives can be just as problematic as cars themselves. With carpools, we still run the risk of drivers that are not paying full attention to the road because they are paying more attention to the members of their carpool. Though with the intent of conserving gas, carpools will still pollute our fresh air with the harsh chemicals found in gas. Buses are more or less a large- scale carpool. Buses may seem to promote mass transportation of people, they are very costly because drivers must be paid and money must be spent on gas. Not to mention that buses can be extremely dirty, whereas the pods are self sanitized.

Porter’s Five Forces is defined as threats of new entrants, bargaining power of suppliers, power of buyers, the threat of substitutes and rivalry among existing competitors. New entrants into the industry aim to gain market share from rivals, so the intensity of competition may require to make changes on current strategy of marketing to maintain existing market share. The bargaining

Michael Eugene Porter is an economist, author, advisor and a researcher. He is the creator of Porter Five Forces theory, which is a framework for a business. The model “identifies and analyzes five competitive forces that shape every industry, and helps determine an industry 's weaknesses and strengths” (Investopedia LLC, 2016). The five forces are competitive rivalry, bargaining power of buyers, bargaining power of suppliers, threat of new entry, and threat of substitution. This is a very important theory which a business can strengthen their position.

This analysis is conducted on the Porters Five Forces theory that is crucial for effective strategic decision-making, the five forces that shape industry competition are:

The more modern life, the higher traveling. One country cannot develop without traveling. Thus, governments should give more money, and policies to improve the quality of streets, roads, highways and besides, governments have to increase more public transportation such as buses, trains, subways.. to service the needs of traveling.

From the survey, the most cited reason for using public transport was for work purposes (56%), followed by other essential services (20%), education (8%) and shopping (6%), with other reasons given by the remaining survey respondents. A similar survey of 418 people was conducted recently on the reasons for using public transport with the following results:

Often, buses are more convenient because they can use the widespread roads rather than be limited to the rails.

Price is a key component in deciding how to make it from one place to another, because traveling any distance these days comes at some sort of cost. At one time, the car was the least expensive way to travel, because most people owned or had access to a car and gas prices were relatively affordable. However, even though newer cars are

In his article “The five competitive forces that shape strategy“, Michael Porter (2008) updates and extends his “five forces” framework he first introduced in 1979 and which has influenced the academic and business research for decades. He reaffirms that “THREAT OF ENTRY”, “THE POWER OF SUPPLIERS”, “THE POWER OF BUYERS”, THE THREAT OF SUBSTITUTES”, and “RIVALRY AMONG EXISTING COMPETITORS” are the forces that shape every single industry, and a thorough understanding of such forces help analyze everything from the intensity of competition to the profitability and attractiveness of any industry. The framework has two dimensions; the vertical dimension that connects

One of the best ways to analyze the external environment is through a five forces analysis, developed by Michael Porter (QuickMBA, 2010). This analysis gauges the desirability of an industry by examining the five forces that drive profitability. These are the bargaining power of buyers, the bargaining power of suppliers, the threat of substitutes, the threat of new entrants and the intensity of rivalry among firms in the industry. In the automobile industry, suppliers have moderate bargaining power. Parts suppliers are to an extent price takers, as they rely on the volume from their major customers among the Big Three and the major foreign buyers. However, labour has proven to

As quoted by Rodrigue, J-P (2013), “the most important transport problems are often related to urban areas and take place where transport systems fails to satisfy the various requirements of urban mobility because of several reasons. Productivity of any urban area is highly dependent on its transport system and also its efficiency to regulate goods, workers and consumers between multiple origins and destinations”.