Strategic Analysis of the Global Automotive Industry

Topics: Automotive industry, Customer, Industry Pages: 3 (655 words) Published: April 27, 2011
Strategic Analysis of the Global Automotive Industry

This report provides an analysis and evaluation of common and major global trends and identifies the common business opportunities and their impact on the global automotive industry.

Globalization gave the original equipment manufacturers (OEMs) not only the opportunity to expand to the new markets, but it also increased the risk of failure. Since globalization increased competition and gave the choice to consumers, automotive industry needs constant development to meet all consumers' requirements. Besides the accelerating competition and diversification of consumers, OEMs today are affected by several factors both internal and external.

The external factor are of great importance as the company cannot influence them, but depends on them. Even slight change in one of the factors can seriously affect the company's performance.
The external factors are as follow:
Demographics: population growth rates, age, level of education, distribution of income, rural urban ration, and family structure – all these determine demand as well as consumers' preferences. Politics: political instability in some countries influences the prices of oil, energy and raw materials, which are vital for OEMs. legislation: the level of government protection, the taxes and duties, barriers to trade, etc. Technology development: new technologies, new flexible assembly lines, etc. Cultural factors

Socio-economical factors: fluctuations in exchange rates and interest rates, the oil and raw material prices; the salaries of the workers, etc.

The internal factors are:
Customers: their preferences, expectations, etc.
Suppliers: rising prices of raw materials, failure to deliver orders in time, transportation costs,etc. Distributors
Competitors: financial strength, market share, efficiency of distributor network, customer loyalty, etc.
Today, the increasing prices of energy, especially oil, and antipollution pressure from...
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