Automobile Manufacturing Industry - Five Forces Analysis

Automobile Manufacturing Industry - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Automobile Manufacturing Industry) Large industries allow multiple firms and produces to prosper without having to steal market share...

Bargaining Power of Suppliers

Volume is critical to suppliers (Automobile Manufacturing Industry) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Critical production inputs are similar (Automobile Manufacturing Industry) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Low cost of switching suppliers (Automobile Manufacturing Industry) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Substitute is lower quality (Automobile Manufacturing Industry) A lower quality product means a customer is less likely to switch from Automobile Manufacturing...
Limited number of substitutes (Automobile Manufacturing Industry) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Product is important to customer (Automobile Manufacturing Industry) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Automobile Manufacturing Industry) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong brand names are important (Automobile Manufacturing Industry) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Automobile Manufacturing Industry) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Customers are loyal to existing brands (Automobile Manufacturing Industry) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Industry requires economies of scale (Automobile Manufacturing Industry) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
High capital requirements (Automobile Manufacturing Industry) High capital requirements mean a company must spend a lot of money in order to compete in the...
Entry barriers are high (Automobile Manufacturing Industry) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

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