Porter’s Five Forces Analysis for the Global Automobile Industry (980 words)

Research your company and its industry and perform a Porter Five Forces analysis. For this assignment you should acquire a minimum of five separate pieces of research material, which can include periodical articles, investor analysis, and trend analysis for your company’s industry.

Please use both your book and this article on Blackboard for reference.

A Five Forces chart should begin your analysis to serve as a quick reference point. Beneath each of the forces, you should provide a brief one or two word description of what you will present on the pages following (see example below).

Each of the Five Forces; namely, Barriers to Entry, Rivalry, Supplier Power, Buyer Power, and Threat of Substitutes, should then be discussed beneath their own headings in your paper using as much space as you deem necessary to complete your analysis. Also, please conclude your paper with a brief (1-4 paragraphs are probably good) summary of the key competitive forces that are facing your company.

Bargaining power of customers: The bargaining power of consumers is high in this industry. This is because the automobile industry is oligopolistic in nature and all the players are differentiating their products and brands to get consumer attention. As there are many options available for the consumer, they can select from a wide variety of cars available and they have become demanding. As an example, Chevrolet has been the flagship brand of General Motors. However, in the European market, this brand has been a failure and as reported by Colias, it may even withdraw this brand from the European market. Different consumers from different markets have different tastes and the companies need to customize their offerings to these tastes so that they can please the variety and value seeking consumers. ...

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