Porter five forces model analysis on german car industry

The car industry would see a massive capacity building in low-cost locations like India as manufacturers shift base from developed regions. The substitutes for it are low budget cars and other means of transport such as a bus or train.

Suppliers include vendors specializing in raw materials such as metals and other automotive and electronic parts. The higher the cost of operating a vehicle, the more likely people will seek alternative transportation options.

The NANO car has more than suppliers in all and the major portion of the building cost of the car is the parts supplied by the suppliers.

porters five forces

In recent times, India has emerged as one of the favourite investment destinations for automotive manufacturers. These changes can cause massive delays and glitches, which result in increased costs and slower revenue growth.

porters five forces luxury car industry

In especially, US dealers were giving great deals to buyers to get the industry moving. Commercial vehicle will grow by 5.

InMercedes-Benz was the second highest seller units wise with more than 1. State-owned car manufacturers like Proton in Malaysia experience less rivalry but are still under pressure from imports.

For example is the number of competitors very high within the industry the market attractiveness is very low. The American auto industry started with countable manufactures, but as s approached, the industry became dominated by three major firms like Chrysler, Ford, and General Motors.

michael porter five forces model for automobile industry
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Five Forces Analysis of the Automotive Industry