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Automobile: Porter Generic Strategies and Strategic Group

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Automobile: Porter Generic Strategies and Strategic Group
STRATEGIC ANALYSIS OF
GLOBAL
AUTOMOBILE INDUSTRY

Table of Contents

1. EXECUTIVE SUMMARY

The report will undertake a strategic analysis of Global Automobile Industry. Relevant theoretical frameworks and concepts will be applied to the automobile industry in order to make better understanding of its strategies.

Firstly, the report will provide background information such as industry definition, competitors and history outline. It will also include reasons for undertaking this research.

Secondly, strategic analysis of Automobile industry will be conducted with respect to Macro-environment (PESTEL) factors. In addition, impact of macro-environment factors on consumer demand and growth in the industry will be evaluated. Main key drivers among the PESTEL factors will be identified and explained.

Thirdly, the report will conduct analysis of the Automobile industry on the basis of Porter’s five forces (Industry analysis) and implications for the same will be provided.

In the next section, strategic groups operating in the Automobile industry will be identified and analyzed. A Strategy Canvas will be formulated and blue ocean space will be suggested.

Lastly, generic strategy as pursued by strategic group will be explained along with its response to macro and industry forces. The reports will conclude with a summary of key findings.

2. INTRODUCTION

2.1 Rationale for the research

The research will focus on strategic analysis of Automobile Industry. Automobile Industry is one of the most prospering industry having footprints globally. This research is being conducted to gain insights to strategies adopted by a global industry in order to fulfill customer and macro environment needs. It would be worth knowing how a huge industry behaves in different environments. This research is valuable to companies or individuals looking to expand into automobile industry. Through this


References: Datamonitor Report (2010). Global Automobiles. Industry profile. Dransfield, Rob (2001). Corporate strategy. Heinemann. Last accessed 9th August at: http://books.google.co.uk/books?id=24N484QuNFsC&pg=PA20&dq=PESTLE+ANALYSIS&hl=en&sa=X&ei=NVACUuuQIpKT0QWd_oHYBQ&ved=0CFoQ6AEwBw#v=onepage&q=PESTLE%20ANALYSIS&f=false Institute of motor industry (2010). The automotive retail sector: Impact of recession. July 2010. Last accessed 8th august 2013 at: http://www.motor.org.uk/documentlibrary/Research/Impact%20of%20the%20Recession%20Key%20facts%20v4.pdf KPMG Global Automotive Executive Survey (2013). Managing a multidimensional business model. Last accessed 15th August 2013 at: http://www.kpmg.com/global/en/issuesandinsights/articlespublications/global-automotive-executive-survey/pages/default.aspx KPMG International (2010). The transformation of automotive industry: Environmental regulation effect. Las accessed 7th August 2013 at: http://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/Documents/transformation-automotive-industry.pdf MELLAHI, Kamel, FRYNAS, George J., FINLAY, Paul N. (2005). Global strategic management. Oxford University Press. First edition. MILLER, Danny (1988). Relating Porter’s Business Strategies to Environment and Structure: Analysis and Performance Implications. The Academy of Management Journal. Vol.32 (2), pp. 280-308. Nissan Annual Report (2008). Last accessed 21st August 2013 at: http://www.nissanglobal.com/EN/DOCUMENT/PDF/AR/2008/AR08_e_all.pdf PENG, Mike W. (2012). Global strategy. Third edition. Cengage Learning. Strategic learning software (2013). Last accessed 22nd August 2013 at: http://strategiclearning.chriscfox.com/Analysis/StrategyCanvas STURGEON, Timoth J., BIESEBROECK, Johanness V., (2010). Effects of crisis on the automotive industry in developing countries. Policy research working paper. Wall street Journal (2013). Five new technologies to make driving easier. February 2012. Last accessed 8th august 2013 at: http://online.wsj.com/article/SB10001424127887324445904578285882474277840.html
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