Appendix 1.9 – Porter’s five forces of automobile industry in Ukraine, Turkey, and Egypt.
There is a detailed analysis of Porter’s five forces in Ukraine, Turkey, and Egypt, which predicts further operations of Dongfeng Motor Corporation.
Threat of new entrants:
According to the Ukrainian market, the threat of new entrants will be high as it is not difficult to get into Ukrainian automobile industry which is resulted by cheap labour costs. While in Turkish market the threat of new entrants will be between low and medium level because of a big number of competitors such as BMW, Mercedes, Audi, Volkswagen, Toyota, Lexus and others. Despite the fact that Chinese vehicles are very popular around the world, it shows an opportunity for threat …show more content…
It is because substitutes for this service already exceeded in the market from small players as Citroen and Peugeot to big car manufacturers such as Mercedes, BMW and Audi. In addition, Dongfeng provides the same services as other automobile organisations which is providing to defend their market share in terms of volume or other. According to a consumer perspective, the alternative option will be either to go for the closest service centre or use another option which are easily available for their location (AGMRC, 2004).
Industry rivalry:
Industry rivalry of the automobile industry will be high for Ukrainian, Turkish and Egyptian markets because the automobile industry in these countries is growing very fast and all competitors provide their car services. This is a large threat to exciting automobile producers and the industry rivalry in these countries is very intense from big players such as Hyundai, Mercedes, BMW, Toyota and Lexus having a good dominance in their service ability (AGMRC, 2004).
Appendix 2.1 – Porter’s Diamond Framework of Ukraine, Turkey and Egypt.
Firm strategy, structure and …show more content…
For example, Ukrainian automobile industry is still developing and focus their production on quality. Thus, it is will be beneficial for Dongfeng to increase its sales as the organisation produces high quality vehicles. In addition, Ukraine has iron industry, which will be helpful for Dongfeng to reduce production costs by producing car bodies for their vehicles (Rowe, 2015).
Turkey has strong supporting industries and well-developed infrastructure in car industry. Currently Turkey has only 1.300 companies which produce automobile parts. Therefore, it is will be an advantage for Dongfeng to increase their sales by selling automobile parts and providing service for its vehicles in Turkey. Furthermore, Turkey has highly developed education sector which can provide Dongfeng professional employees (Tatoglu, 2008).
The Egyptian automobile industry is still in its developing stage. Thus, no fixed or widely accepted approach of segmenting the market has evolved as yet. Nowadays, Egypt is suffering from lack of industries. Therefore, Dongfeng will be new on the Egyptian market which will improve a brand image and market share (Car-manufacturers,
There is a detailed analysis of Porter’s five forces in Ukraine, Turkey, and Egypt, which predicts further operations of Dongfeng Motor Corporation.
Threat of new entrants:
According to the Ukrainian market, the threat of new entrants will be high as it is not difficult to get into Ukrainian automobile industry which is resulted by cheap labour costs. While in Turkish market the threat of new entrants will be between low and medium level because of a big number of competitors such as BMW, Mercedes, Audi, Volkswagen, Toyota, Lexus and others. Despite the fact that Chinese vehicles are very popular around the world, it shows an opportunity for threat …show more content…
It is because substitutes for this service already exceeded in the market from small players as Citroen and Peugeot to big car manufacturers such as Mercedes, BMW and Audi. In addition, Dongfeng provides the same services as other automobile organisations which is providing to defend their market share in terms of volume or other. According to a consumer perspective, the alternative option will be either to go for the closest service centre or use another option which are easily available for their location (AGMRC, 2004).
Industry rivalry:
Industry rivalry of the automobile industry will be high for Ukrainian, Turkish and Egyptian markets because the automobile industry in these countries is growing very fast and all competitors provide their car services. This is a large threat to exciting automobile producers and the industry rivalry in these countries is very intense from big players such as Hyundai, Mercedes, BMW, Toyota and Lexus having a good dominance in their service ability (AGMRC, 2004).
Appendix 2.1 – Porter’s Diamond Framework of Ukraine, Turkey and Egypt.
Firm strategy, structure and …show more content…
For example, Ukrainian automobile industry is still developing and focus their production on quality. Thus, it is will be beneficial for Dongfeng to increase its sales as the organisation produces high quality vehicles. In addition, Ukraine has iron industry, which will be helpful for Dongfeng to reduce production costs by producing car bodies for their vehicles (Rowe, 2015).
Turkey has strong supporting industries and well-developed infrastructure in car industry. Currently Turkey has only 1.300 companies which produce automobile parts. Therefore, it is will be an advantage for Dongfeng to increase their sales by selling automobile parts and providing service for its vehicles in Turkey. Furthermore, Turkey has highly developed education sector which can provide Dongfeng professional employees (Tatoglu, 2008).
The Egyptian automobile industry is still in its developing stage. Thus, no fixed or widely accepted approach of segmenting the market has evolved as yet. Nowadays, Egypt is suffering from lack of industries. Therefore, Dongfeng will be new on the Egyptian market which will improve a brand image and market share (Car-manufacturers,