Analysis Of Automobile Manufacturing Industry : The Automobile Industry

1173 Words Sep 10th, 2015 null Page
Analysis of an Automobile Manufacturing Industry
The automobile industry is one of the most competitive industries across the world. Over the past few years, the industry has been characterized by chaotic competitiveness, a rising cost of fuel and growing concerns for environmental sustainability has made it very difficult for companies to operate (Ellwood, 2008). While most companies within the automobile industry have embraced the need for small and efficient cars that utilize very minimal amount of fuel, the expansive need for eco-friendly cars still contributes to high rate of competitive leading to an emergence of hybrid and electric motors. However, a dynamic shift in the level completion has subjected such companies to shift their focus from big cars to small cars (Ellwood, 2008). However, the competitive window is left open with anticipation that fuel prices will eventually come down, and consumers might embark to the big car-fold. Therefore, this high rate of competitiveness has degenerated into a complex composition that can only be explained by Michael Porters six forces model.
With expansive forces always on the high end, integral demand has taken a toll to streamline cohesion. For instance, Toyota has expanded its production purposely to improve its investment scale, create more opportunities for employees and to meet a competitive advantage (Ellwood, 2008). As such, the porter’s six forces create a complex dependency and have since contributed to a state of…

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