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Auto mobile industry analysis by five forces model
Group:B
PREPARED FOR :
Rezaul karim Shamim
Department of business administration
PREPARED BY :
1. Golam Sorwar Id: 082-001-131
2. Ahsanul karim Id: 081-001-131
3. Md. Rubel Id: 081-005-131
4. Sadaqur Rahaman Id: 081-010-131
Contents
1. Overview of Automotive Industry Analysis
2. Demographics
3. Economic
4. Technology
5. Global
6. Automotive Industry Five Forces of Competition Model
Overview of Automotive Industry Analysis
The development of the automobile came from many different people from different countries. The development stated in 1769 in France, with the invention of a three-wheeler that was powered by steam (Gale, 2003). Then in 1800's the first internal combustion engine was created in Belgian and the first gasoline powered vehicle was constructed in 1885 in Germany (Gale, 2003). Henry Ford built the first car in 1896 (Gale, 2003). He then revolutionized the industry with the invention of the assembly line. The assembly line allowed him to mass produce the cars making them more affordable to the consumers.
Automotive Industry Five Forces of Competition Model [pic]
Automotive Industry Five Forces of Competition Model
• Threat of New Entrants
• Bargaining Power of Suppliers
• Bargaining Power of Buyers
• Threat of Substitute Products
• Intensity of Rivalry among Competitors
Threat of New Entrants
The threat of new entrants is very low in the automobile industry. The industry is very mature and it has successfully reached economies of scale. In order to compete in this industry a manufacture must be able to achieve economies of scale. For this to occur, manufacturers must mass-produce the automobiles so that they are affordable to the consumer. Another barrier to entry is that it takes an incredible amount of capital to manufacture the automobiles....