Automotive Industry in Slovakia Essay Example for Free

Automotive Industry in Slovakia Essay2. Describe the industry and explain why you fuck off chosen that one (Porters tailfin forces).The automotive industry is a big marge indeed it is used to describe a large range of companies and organizations engaged in the development, design, manufacture, marketing, and selling of labour vehicles. The automotive industry is one of the worlds most important economic sectors in foothold 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 fivesome Forces are used to interpret the attractiveness of an industry. It is done by observing five forces which influence that industry. The five forces are1. The threat of new entrants2. The bargaining power of customers3. The threat of substitute products4. The bargaining power suppliers stir5. The intensity of the competitive rivalry1. The threat of new entrantsThis is gener tout ensemble y a very emit threat. Factors to examine for this threat include completely barriers to entry such as upfront capital requirements, brand equity, code and government policy and the ability to distribute the product. A new entrant will also have to adapt hes machines to the customers habits, e.g. bigger motorcars in the US than in Europe.2. The bargaining power of customers at that place are so umteen cars to choose nowadays. The main factors that affect the customers choice to leveraging a car or non are* The appearance* Quality* Price* Environmental executionCustomers 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 caoutchouc and less consuming car. Due to all the competitors you find in the market, customers will be able to acquire a cheaper car at a good level of quality. Car manufacturers are also structure environmental friendly cars indeed, they have 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 cured cars at lower prices than the new ones or a city/country with very good universal transportation, bicycle lanes that would allow you to move in a different and cheaper way than our usual cars you will non 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 line 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 believe at all on the suppliers but the suppliers rely on the manufacturers.5. The intensity of the competitiv e rivalryIn most countries all carmakers are engaged in fierce competition. All major car-producing nations experience this graphic 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 uniform industry, what differs is that those firms positiveness 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 su ccess.