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Proton Entering South African Market Internal and External Analysis and Strategic Analysis

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Proton Entering South African Market Internal and External Analysis and Strategic Analysis
Title page

Table of contents

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Executive summary

Introduction

Body of the report (this section is further divided into as many sections as necessary)

Conclusions

Recommendations

Appendices

Bibliography/Reference list

A strategic analysis of the industry is being done to determine the attractiveness of the South African Industry. To keep a sustainable competitive advantage over time an external analysis will help to determine the opportunities and threats in the operating environment that influence organizational objectives. Macroeconomic factors have to be looked at because they are part of this operational environment. The country and national environment in which the company competes. In the case of this report the country is South Africa.

Country and Environment

South African Inflation has caused policy makers to increase interest rates in order to reduce the inflation down to about 5% by 2009. The country’s growth on the other hand has been a good 4%, but this growth, stimulated negatively by the high interest rates, violence in the country and power cuts in 2008 could decrease.

The Industry
The South African Industry is currently a growth industry in 2008. It only really gained its foundations in 1990s. In 1995 the South African automotive industry became more globally structured. Since the 1990s there has been a shift from local to foreign ownership. All assemblers are now wholly owned by multinationals now. There are many indicators that accentuate the fact that it is a very lucrative time for proton to invest in this industry.
“The South African automotive industry consists of light vehicle assemblers, the medium and heavy commercial vehicle sector, the component sector and the retail sector, the latter including motor trade and aftermarket parts and accessories. The catalytic converter manufacturing industry in South Africa is the biggest contributor

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