Prepare an analysis of the automobile manufacturing industry using Porter's five forces framework. For each component force provide support for your conclusion. In addition, at the completion of your analysis provide a conclusion, along with support, of whether you expect the automobile industry to report high or low profitability in the near future
Buyer Power--HIGH--It appears that consumers are sensitive to price as many manufacturers have similar offerings in each auto product class. In addition, cars are a large part of most consumers budget. Working against high buyer power is brand loyalty and control of the distribution channel.
Supplier Power--LOW--Given auto makers size it is likely that these companies exert significant influence over suppliers, leading to low supplier power.
Rivalry among existing firms--HIGH--There is intense rivalry among auto firms, which is evidenced by heavy advertising. In addition, the market is mature so additional market share must come from other competitors leading to intense competition.
Threat of new entrants--MEDIUM--While entirely new auto companies are rare, non-U.S. companies entering the U.S. market is more common. Kia and Hyundai are companies that have recently started competing in the U.S. market.
Threat of substitutes--MEDIUM/LOW--It is doubtful that many U.S. consumers are going to switch to mass transit or bicycles due to the logistics of the U.S., however one threat to auto manufacturers is used cars. As cars become more reliable and longer lasting many consumers may switch from purchasing new cars to used.
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Define and describe analytics. Give an example of an organization using analytics and how they are using it.
What will be an ideal response?
Select the statements reflecting the general sense of vulnerability that is relevant to target marketing.
A. A person is vulnerable as a consumer because he or she is unable in some way to participate as a fully informed and voluntary participant in the market exchange. B. A person is vulnerable because he or she is the typical customer for a particular product. C. A person is vulnerable because he or she is susceptible to some physical, psychological, or financial harm other than the financial harm from an unsatisfactory market exchange. D. A person may be seen as vulnerable because he or she belongs to some ethnic group, or is poor, or is a resident of a particular neighborhood. E. A and D. F. A and C.
If the equilibrium price of gasoline is $2.75 per gallon and the government will not allow oil companies to charge more than $2.00 per gallon of gasoline, which of the following will happen?
A) Demand must eventually decrease so that the market will come into equilibrium at a price of $2.00. B) Supply must eventually increase so that the market will come into equilibrium at a price of $2.00. C) Total surplus in the market will be lower than it would be if the price was $2.75 per gallon. D) The market will be in equilibrium at a price of $2.00.
The (current) ultimate in terms of integrating data from a wide variety of sources that enables the organization to make better and faster production decisions is ______________________________ planning.
Fill in the blank(s) with the appropriate word(s).