Introduction Throughout the world there are numerous automotive manufacturers. Appendix A is a list of 215 that can be found on the Wikipedia Website titled List of current automobile manufacturers (alphabetical). (List of current automobile manufacturers (alphabetical)) Due to the restricted amount of time available of information on manufacturers, and the restricted amount of time available for this paper, research was limited to only the manufacturers listed below for the majority of the industry outlook. [replace with company chosen] was chosen for an in depth review for this report. • Ford Motor Co. • General Motors • Honda Motor Co. • Toyota Motor Corp Ltd. • Nissan Motor Co. • Fiat Group • Volkswagen AG • Hyundai Motor Co. • Bayerische Motoren Werke AG (BMW) • Daimler AG (Mercedes-Benz) • Subaru Industry/Market Analysis Outlook for the Automotive Industry In 2013, Frost & Sullivan, a growth partnership company, set five predictions for the year. Some of these predictions included China selling twenty million vehicles, at least one brand consolidation, Volkswagen group to become the number one group, and for there to be one billion vehicles in operation (Singh, Surender and Kelly). Throughout the year, multiple of these predictions were met or were close to being met, meaning Frost & Sullivan make fairly accurate predictions of the coming year. For 2014, the predictions they have include expecting China to sell around twenty-three million vehicles and the United States to pass the sixteen million mark for sales, expecting two major original equipment manufacturers (OEMs) to cross ten million sales, expecting the luxury car market to increase possibly growing in double digits, and future car retailing to evolve and be... ... middle of paper ... ...F. Slater. "A Fresh Look at Industry and Market Analysis." Business Horizons (2002): 15-22. Picciotto, Dan and Nishit K Madlani. "The Global Auto Industry Shifts Its Focus To OVerseas And Emerging Markets." Credit Week (2013): 26. Online. 21 May 2014. . Porter, Michael E. "From competitive advantage to corporate strategy." Harvard Business Review (1987): 43-59. Print. May 2014. Rhett Dornbach-Bender, Bill Slade, Joe Thorpe. "Strategic Report for Ford Motor Company." Oasis Consulting (2009): 28. online. 20 May 2014. . Sedgwick, David. "Pricing Power shifts to suppliers." Automotive News (2012): 2. online. 20 May 2014. .
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40.
If we go back to the past and analysis the data we can see that the automobile industry is responsible for around 12 million job in Japan and USA which tells us the story behind how fast the industry is growing. The case also talk about the future of the auto mobile industry. According to the case study the current auto market is divided majorly in three category one of them is the premium category which is highest valued car and it has a 10 percentage of market share globally then the second one is known as value segment here we can find out the mid segment cars it has a roughly a market share around 70% and then come the least expensive vehicle which also has a market share of
The threat of new international entrants here in the United States for automotive manufacturing is extremely high, the rising global economy and the recent up comings of new foreign competitors with their capital, technology, management and marketing skills will soon be a threat for the U.S. automotive industries. You can see how this is noticeable if you look at the overall global market in terms of vehicle sales. But for right now the U.S. automotive industries are under no pressure from a threat of new international
Kennedy, Scott. Foreign-based Companies Investing in the U.S. Auto Industry. U.S.: Office of Aerospace and Automotive Industries, International Trade Administration, & U.S. Department of Commerce. 2007. Print.
Many economic factors exist that impact the development of Ford Motor Company's strategic plan and it’s no small task to project how some of these factors might change as the strategy is being realized. Consider the prospect of expansion into a new market like China or Mexico. Economic changes like currency devaluation will make Ford’s product more expensive to their target market potentially reducing overall sales revenue. Oil prices as we’ve seen in the U.S. economy can also play a big factor as large vehicles become less desirable and more fuel efficient compact cars gain market share.
In The Competitive Advantage of Nations, which was published in 1990, Michael Porter – who has dedicated most of his career to studying businesses and how they can develop a competitive advantage (Competitive Strategy, 1985) –
Porter, M. E., 1999. The Five Forces that Shape Competitive Strategy. Harvard business review, p. 80.
Since 2000, the auto component industry has recorded an investment level of Rs 18 bn and has attracted US$ 530 mn in terms of foreign direct investment. Investments in the sector have been growing at 14% per year. In 2005-06, investments touched US$ 4.4 bn, and are expected to grow significantly in
Hendersern and Stern 2000, ‘Untangling the origins of competitive advantage’,Strategic Management Journal, Vol. 21, pp. 1123-1145.
Ford Motor Company current mission statement is “committed to provide personal mobility for people around the world”. With that in mind their vision is to become the world’s leading Consumer Company for automotive products and services. By improving everything they do, the company provide superior returns to their shareholders (Vision, Mission, Values).
Pope, B. (2008). Ford Advances Global Purchasing Strategy. Ward's Auto World, 44(7), 36-38. Retrieved from EBSCOhost.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 25-40.
Spatz, J., & Nennenkamp, P. (2002, January). Globalization of the automotive industry-traditional locations under pressure. Retrieved January 14, 2012, from http://www.uni-kiel.de/ifw/pub/kap/2002/kap1093.pdf
India is now a favoured location for auto majors due to the factors of being pivotal in manufacturing and providing qualified manpower at competitive costs. This is being augmented by the stasis of the Western auto market which has led to capacities shifting and capital flow towards the Indian side.
Ford is forecasting that 2010 sales in industry will rise to between 11.5 million and 12.5 million vehicles, up considerably from last year’s 8.4 million. Boudette, and Dolan, 2010). Ford is about to launch its smaller vehicles; less than two years ago Ford Motor’s plant in Mexico was building big pick-up trucks. But Ford has retooled to produce Ford’s small Fiesta car, due to go on sale in America for the first time in June. Simon, 2010).Mulally is the architect of Ford’s remarkable recovery in its fortunes.