Porter's Five Forces Strategy Analysis as it applies to the Auto Essay

Porters Five Forces Strategy Analysis as it applies to the auto Industry - examine ExampleFor international organizations, decisions have to be made on whether the strategies would be the same for every land it competes with as well as giving managers the mandate to choose their own strategies. Functional strategies for particular cognitive operations derived from business level strategies include marketing, accounting and finance. An automotive application manufactures, designs, develops, markets and sell motor vehicles and is considered the worlds most significant economic sector in terms of revenue generation. The American automobile diligence is the only industry that has never changed for years since its inception. Businesses begin, grow, develop, and end just like human beings. Some do not complete their life cycle as a result of their interruptions. They undergo a multitudinous of challenges that make them eventually die. Contrary to a human being, a business can change its methods of operation to more efficient mechanisms for improvement. From this view, the American automobile industry has raised the question of whether it will be adapted to adapt or it will end from its stagnating condition. Before establishing an organizations business-level strategy, it must discern the determine factors of profit maximization of an industry. The tool of analyzing these factors is what is known as Porters Five Forces Model. ... Introduction to the Auto Industry As defined earlier, an automotive industry manufactures, markets, designs, develops and sells motor vehicles. It does not include industries attached to automobiles subsequently delivery to the client such as fuel stations, electronics and repair shops. An automobile industry involves producing and selling singular powered vehicles such as trucks, passenger gondolas, farm equipment and other commercial vehicles. The auto industry has facilitated the evolution of infrastructure for long distance co mmuters, entertainment and shopping, growth of market centers, increased urbanization and industrialization (Burgess, 1980). The industry is also one of the key employers thus contributing to economic growth. Until 2005, the US dominated the world in production of automobile. Majority of the auto dealers in the US were blacksmith and carriage shops. Progress was soon developed when the car replaced the horse and buggy. Blacksmith shops were everywhere in the market centers and played the role of serving customers at a enceinte deal. The inventors of automobile industries were engineers like Henry Leland and Henry Ford. Blacksmith shops were service oriented whereas carriage shops required season to beat management together with the horses that drew them. Since their goal was to provide exceptional satisfaction to the customers needs, they slowly became auto dealers of go their customers vehicles. They were able to compete with service stations such as Jiffy Lube, Midas, and Mein eke among others. From that time the number of dealers began to increase giving rise to many franchised automobile dealers. This trend went down from 1950 until 2007 (Tuman 19). 3.1 Industry rendering The first fifty years saw the industry