Porters five forces analysis of automotive industry in pakistan and bangladesh

High costs of switching companies Government restrictions or legislation Power of Suppliers - This is how much pressure suppliers can place on a business.

Porters five forces analysis of automotive industry in pakistan and bangladesh

How loyal are customers to your brand Price sensitivity How well differentiated your product is Availability ofsubstitutes Having a customer that has the leverage to dictate your prices is not a good position.

Bargaining power of suppliers This relates to what your suppliers can do in relationship with you. How strong is the position of sellers? Are there many or only few potential suppliers?

Is there a monopoly? Do you take inputs from a single supplier or from a group? Can you easily switch from one supplier to another one?

Porters five forces analysis of automotive industry in pakistan and bangladesh

Are there other suppliers with the same inputs available? Michael Porter's model of Five Forcescan be used to better understand the industry context in which the firm operates. Porter's Five Forces model is a strategy tool that is used to analyze attractiveness of an industry structure.

Porter's Five Forces modelviews thebusiness fromoutside. It focuses on assessing competitive position within industry. Porter's Five Forces model in the internal view. Automobile Industry The auto manufacturing industry is considered to be highlycapital and labor intensive.

The major costs for producing and selling automobiles include: Labor - While machines and robots are playing a greater role in manufacturing vehicles, there are still substantial labor costs in designing and engineering automobiles.

Advertising Each year automakers spend billions on print and broadcast advertising, furthermore, they spent large amounts of money on market research to anticipate consumer trends and preferences. The auto market is thought to be made primarily of automakers, but auto parts makes up anotherlucrative sector of the market.

The major areas of auto parts manufacturing are: Original Equipment Manufacturers OEMs - The big auto manufacturers do produce some of their own parts, but they can't produce every part and component that goes into a new vehicle. Companies in this industry manufacture everything from door handles to seats.

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Replacement Parts Production and Distribution - These are the parts that are replaced after the purchase of a vehicle. Air filters, oil filers and replacement lights are examples of products from this area of the sector.

Porters five forces analysis of automotive industry in pakistan and bangladesh

Rubber Fabrication - This includes everything from tires, hoses, belts, etc. In auto industry, a large proportion of revenue comes from selling automobiles.

The parts market is even more lucrative. Offering lower financial rates than financial institutions, the car company makes a profit on financing. Extended warranties also factor into the bottom line.

Greater emphasis on leasing has also helped increase revenues. The advantage of leasing is that it eases consumer fears about resale value, and it makes the car sound more affordable. From a maker's perspective, leasing is a great way to hide the true price of the vehicle through financing costs. Car companies, then, are able to push more cars through.

Unfortunately, profiting on leasing is not as easy as it sounds. Leasing requires the automakers to accurately judge the value of their vehicles at the end of the lease, otherwise they may actually lose money. Indian Automobile Industry The Indian automobile industry is the tenth largest in the world with an annual production of approximately 2 million units.Analysis of Toyota Motor Corporation by Thembani Nkomo Porter’s Five Forces of the Automotive Industry Threat of New Entry (Weak): Large amount of capital required High retaliation possible from existing companies, if new entrants would bring innovative products and ideas to the industry Few legal barriers protect existing companies from new entrants.

The Porter’s Five Force Model for Banking Industry -analysis *** Conclusion *** Porter’s Five Force Model determine long-term profitability & is a reality check to see if a industry .

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Steel Industry Analysis of Bangladesh. Porters Five Forces Model Automobile Industry. Analysis of Steel Industry in Pakistan. Tata Steel. Competition analysis on Iron and Steel Industry.

Documents Similar To Porter Five Forces Analysis Steel Industry. Company Analysis of Tata Steel (Bs Assignment) Uploaded by.5/5(1). In a later part of this paper, nine competitive forces has been established after the discussion of the PEST analysis and the Porters Five forces analysis of the RMG industry ob Bangladesh.

Before we dive on this paper, we must recall that lower cost of labor force is the main competitive factor for strategy formulation of Bangladesh’s business.

A Competitive Analysis of Airline Industry: A Case Study on Biman Bangladesh Airlines PEST Analysis, Porter’s Five Forces, Biman Bangladesh Airlines, Airline Industry. I. Introduction Grant states that „when two or more firms compete within the same market, one firm possesses a it is necessary to analyze the general environment and.

Competition is the other factor that takes its toll on the auto industry; we will discuss this in more detail below under the Porter's 5 forces analysis Key Players In North America, the.

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