SM0495 - Business Environment and Strategic Management
Seminar # 6
Read the articles about Ford and make notes addressing the following questions:
1. Conduct a future-related analysis of the macro-environment.
* I use PEST analysis to analyse car industry in US market
Political
* Restriction of car type
* Increasing tax in US.
Economic
* The low sales growth in US.
* Economic recession. People are not likely to spend their money too much on expensive things.
Socio-Cultural
* The customers want to get the right options and meet with their preference. Moreover, they concern on environmentally friendly.
Technological
* There is slow change in technological development in car industry. There is just hybrid that a new technology.
2. Conduct an industry analysis, using 5 Forces or similar frameworks.
5 Forces Analysis
Bargaining Power of Supplier: (High) There are many suppliers in car industry, which including good quality, right design and suitable in the market
Bargaining Power of Buyer: (High) US people is very price sensitive and concern on locally-produced models of car.
Threat of New Entrants: (Low) The car market is required high capital investment, core competency and loyalty so it’s not easy for new comer to get in the market.
Threat of Substitutes: (Medium) There are many transportation services, such as bus, train, taxi and airplane. Customers have many options to get their destination.
Competitive Rivalry: (High) There is highly competitive in car industry which many competitors in the market and the market size is very large.
3. Conclude your findings with key issues facing all players in the industry in the near future.
* In the future, the car industry will go slowly in technological development, sales volume and no unique in terms of style and design. The car design is depended on geographical and customer behaviour for each country. The price tends to be low...