Presentation Transcript

1. Automotive Industry Report

   SOM-498-003- Dr. MasoudYasai Created By: Faraz Uddin, Daniela Maldonado, Tram Vo, Jake Himan & D. Abbey
2. Industry Performance The automotive industry is one of the most vital forces in our global economy The global automotive industry grew by 21% in 2010 The industry is valued at $1,184.6 billon Projected to grow by 38.6% by 2012
3. Industry Performance Profits have mainly suffered do to the global recession and energy concerns Car’s must now not only look stylish, but provide good gas mileage and be good for the environment Car companies had to revamp their lineup to meet the standards of our new global taste: Style, Reliability, Eco-friendly, & Gas-friendly
4. Key Industry Characteristics The U.S automobile industry is a 493 billion dollar industry. Light Car Sales in the U.S 16.1 million units in 2007 13.2 million units in 2008 10.4 million units in 2009 12 million (expected) units in 2010 14.3 million units in 2012
5. Major Competitors Based on Market Share
6. Nature of Competition The global automotive industry is very competitive Style, Quality, & Cost are major factors
7. Global Impact The USA accounts for 1/5 of the global market share China and India and other emerging countries will be seeking new cars in the future
8. Socio-Cultural Due to the global recession many auto companies have been struggling To help boost sales many companies have to differentiate there products Prices incentives, stylish looks, and impact on the global environment affect consumers decisions
9. Generic Industry Structure The automotive industry is a maturing industry Most companies use product differentiation as their main strategy
10. Porters Model: Suppliers The issue with many companies is the rising cost of raw materials Metals, Leather, etc. This leads to a higher price for consumers Inflation and the job market are going to be major factors for consumers
11. Substitutes There are so many automakers to suit the taste of many consumers Whether you want a fuel-efficient car or a luxury there is a brand for you
12. Buyers Buyers have become very smart when shopping for cars with the advent of the internet The taste’s of buyers have changed from the 90’s when big bulky cars where in Now most consumers prefer small eco-friendly vehicles.
13. Potential Entrants Entry into the automobile business is very tough The market is very saturated The only notable companies to make a dent is Hyundai and Kia from Korea These two companies crept their way into the market by foregoing a cost leadership strategy
14. Complementors Gas Prices Raw Materials: Metals, Glass, etc. Government Incentives IPod & GPS
15. The Future Key Drivers of industry change: Reducing the carbon footprint Future Profits Industry Attractiveness
16. Conclusion Although The global economy is suffering, the auto industry is growing The global population will grow to 7 billion people One day each one of them may want to buy a car Emerging countries with growing economies will seek mobile workers who need cars to get form point A to point B