Situation Analysis Threats (10 marks) describe the threats that you have identified and their implications for your decision from a review of the competitive analysis and the PEST environmental analysis.
Internal competition to Fiat come from the "big Three", Ford, GM, and Chrysler, whilst external competition comes from makers such as Toyota, Honda, and Hyundai. Since Fiat will also be using the Alfa Romeo Giulietta model it will also be faced with competition from other manufacturers of that model that included Nissan, Mazda, Volkswagen, BMW, Audi, and Mercedes . The competition will rest on factors such as size of vehicle, fuel economy, seating, engine, and price with safety being a primary factor for many families.
The European market has its own competitors that include vehicle manufacturers such as Audi A3, the BMW 1 series, Volkswagen Golf, and Mazda 3 . local competition has upped its offerings with incentives such as % financing for terms of up to 84 months, extended warranties to 120 000km, and promotional products such as ipods with purchase. Promotion and marketing has also become aggressive with ventures such as employee pricing events, and seasonal advertising .The Alfa Romeo brand that Fiat intends to reintroduce to Canadians in 2013 is an upscale division of Fiat that last sold cars in the Canadian market in 1995. Its Giulietta Spyder and Sprint models are known for their sporty handling and racing capabilities. These characteristics, however, meet their
A threat assessment is where all possible direct and indirect threats are identified and what
From the last two decades auto industry is growing more competitive. Competition from the foreign automakers like Toyota and Honda is also high. In
The potential threat of new entrants is low as it costs high when it comes to producing a high performance car. The barriers to entry present a low threat to Porsche when it comes to a brand that could immediately match and threatens Porsche’s current brand and market share. The lack of research and development, the technology that was hone throughout the years for Porsche and the Brand recognition that was built throughout the years pose as a difficult and near impossible for any new brand to come into the market and have such an impact.
Of course people would have to choose between variety of brands and the best among the others, these are some examples of popular Japanese automotive brands; Toyota, Honda, Subaru, and Nissan.
After the success of electric cars in the West, manufacturers from around the globe are entering into this business. With more players in the market, the competition is expected to be intense.
* BMW having threat like all companies do. They threatened by Daimlerchrysler AG(DAI), Audi (Volksvegan), Lexus(Toyota),
Several factors have affected how the American auto industry now positions itself on the world market, and big changes have been made to reflect this new direction. The introduction of new technologies in vehicles, the growing market for cars in new developing markets, the impact of the industry on the environment, legislative responses and demands, as well as the increased expectations from consumers, are some of the factors. More international cars are being designed, manufactured and bought by American consumers and exported to foreign markets today than those exclusively manufactured by American companies, redefining the American auto industry, while having a positive impact on its economy. International brands accounted for 45% of total sales in the U.S. in 2013 and have now risen to 59% of the market, and continue to grow. While the amount of American cars has decreased in the local U.S. market share to international ones, the increase of foreign car production on U.S. soil has had the effect of creating new jobs for Americans both in the auto industry as well as in related new industries. The industry has seen huge growth numbers in the last few years with more growth expected.
Stars BMW 3 Series is famous and best selling product line yet. Having sold globally around the world, it is regarded as the best sport sedan vehicle in the world. Due to its popularity and fame, it has high market demand growth, high business in the market share and constantly expanding its 3 Series flagship line. Results of high market demand on the ever growing 3 Series product will result in high market share for BMW. BMW 3 Series over toke its rival with the 3 Series because of its premium sedan feel, luxury premium line, higher driving technology compared to its rivals such as Mercedes and Audi despite both being German Automobiles. When it comes to BMW, they have an advantage because their products give consumers more varieties to choose from such as different trims levels, engine, and specification. Living up to its slogan “The Ultimate Driving
Global competition in the industry: There are many vehicle manufacturers throughout the world. A few common vehicles seen in my state are GM, Chrysler, Lexus, VW, Honda, Toyota, Ford, and Jeep. Each company tries to stay ahead of the rest. Toyota, based in Japan, for example was one of the first businesses to introduce hybrid vehicles. This was a direct result of the oil embargo. After having three oil shortages automobile manufacturers are creating more fuel efficient, environmentally friendly products.
American cars versus foreign cars need to be analyzed before purchasing. When the automotive industry began, Ford was at its prime and american manufactures were the only way to go when looking for a motor vehicle. However the innovation and technology have drastically changed. It now has turned the automotive industry into a competition. Foreign manufactures like Japan and Germany are getting recognized by their quality and are making big competition for American cars.
This external analysis is critical in the development of a well rounded, cohesive strategic plan and will enable the JM Smuckers Company to gain a more comprehensive understanding of the current external operating environment and situational awareness of both future threats and opportunities. This analysis establishes a basic industrial framework, and then utilizes Porter’s 5-Forces model and PEST analysis in attempting to develop a common understanding of the industry and economic environmental threats and opportunities.
- The rivalry between the existing competitors: The rivalry between the three competitors is very high all of the three companies sometimes launch new cars at same. The media and analyst conduct comparisons and reviews of the launched cars and intensify the competition and rivalry between
The Volkswagen Group is one of the world’s largest and leading automobile manufacturers and the largest carmaker in Europe headquartered in Wolfsburg (The Group, 2013). In 2013, Volkswagen managed to increase the number of vehicles delivered to customers from 9.276 million to 9.731 million that corresponds to a 12.8 percent share of the world passenger car market (The Group, 2013). One in four cars in Western Europe is made by Volkswagen; the sales revenue was €197 billion and profit after tax was €9.1 billion (The Group, 2013). Volkswagen Group in total consist of 12 auto brands from Europe, and these brands are Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen
Volkswagen a parent company of Skoda is Europe’s largest carmaker producing cars, trucks and vans. It
Strength of Competition-Very high. Toyota, Mercedes-Benz, Audi, Jaguar, Porsche, and more have invaded BMW’s market niche.