Automotive Industry in Slovakia Essay Example for Free

Automotive Industry in Slovakia Essay2. chance upon the attention and explain why you take aim chosen that wholeness (Porters five forces).The automotive application is a big term indeed it is used to calculate a large range of companies and organizations engaged in the development, design, manufacture, marketing, and selling of motor vehicles. The automotive industry is one of the worlds most primary(prenominal) stinting sectors in terms of revenue. The automotive industry is one of the biggest industries in Slovakia with big manufacturers such as Volkswagen, PSA Peugeot- Citron and Kia. Porters Five Forces be used to meditate the attractiveness of an industry. It is done by observing five forces which influence that industry. The five forces are1. The threat of revolutionary entrants2. The dicker power of customers3. The threat of substitute products4. The bargaining power suppliers have5. The intensity of the competitive rivalry1. The threat of new entrantsThis is gener solelyy a very low threat. Factors to examine for this threat include all barriers to entry such as upfront capital requirements, brand equity, legislation and government policy and the ability to distribute the product. A new entrant pull up stakes also have to adapt hes cars to the customers habits, e.g. bigger cars in the US than in Europe.2. The bargaining power of customersThere are so some(prenominal) cars to choose nowadays. The main factors that affect the customers choice to purchase a car or not are* The appearance* Quality* determine* Environmental effectCustomers like to have the latest brand new looking car on the market. The quality of the car will be an important issue in the choice. The car has to be efficient, which means a safe and less consuming car. Due to all the competitors you find in the market, customers will be able to purchase a cheaper car at a good level of quality. Car manufacturers are also building environmental friendly cars indeed, they hav e to take into consideration all the environmental problems we are having nowadays. A car will be purchased depending on the lifestyle of the buyer.3. The threat of substitute productsThere are very low substitute products, indeed apart from the second hand business where you are able to purchase older cars at lower prices than the new ones or a city/country with very good public transportation, bicycle lanes that would allow you to move in a different and cheaper way than our plebeian cars you will not find any other substitute.4. The bargaining power suppliers haveIn the car industry this refers to all the suppliers of parts, tires, components, electronics, and even the assembly business organization workers. Suppliers usually have very low power, indeed, each manufacturer has many suppliers. Toyota has more than 10 different suppliers in the US which means car manufacturers do not rely at all on the suppliers but the suppliers rely on the manufacturers.5. The intensity of the c ompetitive rivalryIn most countries all carmakers are engaged in fierce competition. All major car-producing nations experience this intense rivalry. This obviously includes the US, Japan, Italy, France, the UK, Germany, China, India, and more.While a Porters five forces analysis applies to all companies competing in one same industry, what differs is that those firms profitability will vary between them. This is because of their own competitive advantages and varying business models. So just because all firms in one industry and market are subject to the same forces doesnt mean they perform equally.We should not forget that an analysis of Porters five forces will not be the same in all countries and same for the type of automotive industry, we understand by type whether if its the electric car industry or the conventional car industry.4. Describe profile of successful business leader (or company) operating in this industry. Identify key elements of the strategy that lead her/him to success.