Porters Industry Analysis

Given the current economic climate, I think the automotive industry is going to be faced with a multitude of economic challenges in the next five years. As an oligopoly market, the auto industry is highly dependent on strategic decision-making, and the demand for dynamic innovation and supply at decreased-cost levels. Competition, possibilities of turning substitutes into compliments, and shifts toward higher demand in services are seemingly leading factors that face the current automotive industry in the immediate future. But first, we should not ignore the political forces at play within the market.

While car manufacturing is a global industry, automotive companies such as JLR operate in broader regions such as Europe and Asia. Three major trends were identified affecting car production in mature markets, the first was the fragmentation of mature markets, customers were demanding more choice, and this has made it difficult for manufacturers to obtain economies of scale, so cost had to be reduced and with the general

The success of the automotive parts manufacturing industry is, at its core, derived from the health of the automotive industry as a whole. Conveniently, the

The law should compel all the manufacturers to abide by the safety and quality standards. Any manufacturer who is found culpable of violating these rules should face stiffer penalty including revocation of trading license. Moreover, all products must be tested against the quality and safety standards before they are released on the market.

The Automotive industry is a large group of organizations that are involved in the making, marketing and selling of motor vehicles. It is one of the most important industries in the U.S and plays a huge roll in the economic growth. It has historically contributed

New technology and innovation are important roles in any industry attempting to succeed in the current market. Automakers have recently put effort toward low emission vehicles, lightweight materials, safety and assisted driving. The American consumers expect the latest technologies and safety features, and the automakers are tasked with efficiently and effectively providing

The American auto industry will face major competition in the next five years from Europe, China, Japan and other emerging markets. In order to remain viable U.S. auto manufacturers must continue to seek out new markets, mergers and invest in new technology.

The bargaining power of suppliers is moderately high in the auto repair industry. If a person wants there vehicle repaired at a shop, a shop can offer them a variety of product lines in order to fix their vehicle. There are Original Equipment Manufactures (OEM) parts which come directly from the vehicle manufacture such as Ford Motor Company. There are also several aftermarket brands that a person good choice from as well which is usually a much cheaper option. Based on the age and part of the vehicle that needs to be replaced determines normally what the customer will ask for. For example, if a person wants a new set of shocks for their vehicle they can have installed Motor Craft which is Ford’s OEM Brand or they could purchases aftermarket shocks from Monroe, Rancho or KYB. In other instances many auto parts have been remanufactured or rebuilt by certain manufactures so it allows a customer a few other paths to go down in order have their vehicle fixed. There are many industries that have entered the market as suppliers because of how many opportunities that are currently in the industry. Many companies such as HP and Mobil are partnered in the diesel oil market. Since there are several suppliers in the auto industry, each

Just like the other industries such as apparel, electronics, and consumer goods, the automobile industry has accelerated its foreign direct investment, cross border trade and global production. The automobile industry has increased outsourcing and bundled value chain activities in major supplier chains. As a result, more developed countries that serve as suppliers have increased their involvement in trade and FDI. With these increased supplier capabilities, large national suppliers have become global suppliers and are now controlling multinational operations. This is because of their increased capability of providing good and services to various lead firms all over the world. The automotive industry has a distinct firm structure. This

Ranked sixth out of the entire world, the United States is one of the leading car manufacturers (Cars). With today's assembly and productions lines, manufacturing of products and its availability to us has never been easier. Automotive production lines revolutionized the automotive industry, as well as American life. They made building cars more efficient. Because of the increase in efficiency, the cost to produce a car went down and when production costs were lowered, so was the retail price of the cars. “This price reduction meant more people could afford to buy a vehicle of their own” (How). As a matter of fact, automobiles are one of the prime examples of mass production within assembly and production lines. Automobiles are everywhere. In the year 2011 alone, 59,929,016 cars were produced around the world (Cars), and those numbers and continually rising. In 2012, for the first time in history, over 60 million cars passenger cars

Industry definition: "Companies in this industry manufacture cars and automobile chassis. These operations, which are referred to as automakers, typically produce cars, including electric cars, in assembly plants. The manufacture of light trucks (e.g. vans, pickups and SUVs), heavy trucks and motorcycles is excluded from this industry." [2]

The United States Automotive industry has been dominated by five major auto manufacturers: GM, Toyota, Ford, Chrysler, and Honda. As globalization increases the domestic automotive market (GM, Ford, Chrysler) suffers from foreign competitors. Although with high entrance barriers the market suffers little to none from new entries. There are several reasons for this the largest being capital. It takes a lot of capital to obtain manufacturing plants, raw materials, as well as to hire and train employees. PASTEL Analysis

The first section of the report analyses the threats within the global automotive industry and those entry barriers that a new

The globalization of 21st century and the global population growth had cause the demand of daily products such as food and transportation increases. This market trend had caused the rise of the manufacturing sector. In order to achieve the maximum manufacturing efficiency, some factories have to run their production line for 24/7. Due to the constant evolving of science and technology sector, some of the production requires very high precision and the working environment had become hazardous. Therefore, running the production line barely on man power is dangerous not suitable anymore. In order to maximize the revenues, industries started to import the automotive technology into their production line.

The key to success of automobile industry lies not only in having good products but also