Analysis of Automobile Industry

WELCOME

Introduction

Oldest

Biggest

Most extended

Ensuring the living of millions

people

The Automobile Industry

History

Year 1600: First vehicles to be propelled by

something than animals or humans

Year 1700-1900: Development of engines

Year 1913: Mass production of vehicles

Year 1930: New vehicle brands were developed

Year 1940: Converting the production from civilian vehicle to

military vehicle for the WWII

Year 1980-Now: Modern automobile industry

Prevailing Car Companies

Industrial Analysis

Porter’s Five Forces Model

1. Threat of New Entrants

2. Threat of Substitutes

3. Bargaining Powers of Buyers

4. Bargaining Powers of Suppliers

5. Current Rivalry

Threat of New Entrants

Concentrated and expensive market

Brand Image

Research & Development

Cost & Time

Configuration of retail distribution network

1967

Inception

1999

Dismantled

Daewoo Lifespan

Threat of Substitutes

Mass transport for area of huge density

Habitations of different areas

Variety from society to society

Choosing alternate options for price hike

Bargaining Power of Buyers Individual buyers have no power

Customers’ power over the manufacture

companies

Price sensitivity

Competitive price

Availability of substitutes

Loan facility

Bargaining Power of Suppliers

Operation on a global scale

Manufacturers getting less involved

Strong cooperation and intensive

communication

Direct suppliers are becoming large global firms

Current Rivalry

Oligopoly

National Competitive Advantage

Industry Overcapacity

Diversification Of Model and Cars

31.85 %

29.76 %

26.98 %

6.12 %

3.34 %1.95 % Europe

Asia-Pacific

USA & Canada

Latin America

Middle East

Africa

Automobiles Sold Worldwide in 2011

Conclusion

The average person can not come along

and start manufacturing automobiles.

Today’s successful companies share many

common business strategies.

Thank You All