Automotive Industry Essay

Automotive Industry Introduction. Porter’s Five Forces Analysis. Bargaining Power of Suppliers. Bargaining Power of Customers. Rivalry between Existing Players. Threat of Substitutes. Threat of New Entrants. Political and legal factors.

The automotive industry is one of the leading industries at the global level. It plays a crucial role in the development of the global economy because of the high revenues and increased customer demands. The automotive industry helps to foster economic development of the country; therefore, it is widely recognized as a major economic sector. The automotive industry consists of multiple companies specialized in car manufacturing, as well as the ones involved in marketing and distribution of vechile products, such as cars, buses, vans, trucks, motorcycles, mopeds and motorized bicycles. The global automotive industry incorporates several large car manufacturers’ blocs that work collaboratively suppliers at the global level.

Today I will try to provide a detailed analysis of automotive industry that gives a clear description of the industry today and its prospects for the future. Attention should be paid to the use of the strategy tools and theories, such as Porter’s five forces, PESTEL analysis and other approaches.

The bargaining power of suppliers is low for the reason of the availability of multiple suppliers in the auto-parts industry. Nevertheless, due to the growth of the supply system and its specialization, supported by new technological advancements, manufacturers have an opportunity to reject the delivery of materials because of poor quality.