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Automotive Industry Report. SOM-498-003- Dr. Masoud Yasai Created By: Faraz Uddin, Daniela Maldonado, Tram Vo, Jake Himan & D. Abbey. 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

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automotive industry report

Automotive Industry Report

SOM-498-003- Dr. MasoudYasai

Created By: Faraz Uddin, Daniela Maldonado, Tram Vo, Jake Himan & D. Abbey

industry performance
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
industry performance1
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
key industry characteristics
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
nature of competition
Nature of Competition
  • The global automotive industry is very competitive
  • Style, Quality, & Cost are major factors
global impact
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
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
generic industry structure
Generic Industry Structure
  • The automotive industry is a maturing industry
  • Most companies use product differentiation as their main strategy
porters model suppliers
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
  • 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
  • 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.
potential entrants
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
  • Gas Prices
  • Raw Materials: Metals, Glass, etc.
  • Government Incentives
  • IPod & GPS
the future
The Future
  • Key Drivers of industry change:
    • Reducing the carbon footprint
  • Future Profits
  • Industry Attractiveness
  • 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