Strategy: Automotive Industry and Bargaining Power

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Strategic Management
(SIM336)

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Words: 3,011

Content
Introduction 2
Main analysis 3
1. How Porter Five Forces Model Reflect Upon the Reality 3
1.1 Porter Five Forces Model 3
1.2 Substitute 4
1.3 Threat of New Entrants 5
1.4 Rivalry 5
1.5 Bargaining Power of Suppliers 5
1.6 Bargaining Power of Buyers 5
2. Compare Theory and Practice 6
2.1 Rivalry for Ford 6
2.2 Threat of New Entrants 7
2.3 Bargaining Power of Ford 10
3. Strategy of Overall Cost Leadership 11
4. A Plan for Ford 12
4.1 SWOT Analysis of Ford 12
4.2 How measurement Ford can implement 13
4.3 The Risk Management of Ford 14
Recommendation 15
Reference 15

Introduction
In this part, it simply illustrates the contrast between the Porter Five Forces Model and the practice of car industry in China. For instance, the Ford Motor Company in China are intended to increase its investment and cooperation sparing no effects to endeavor for another 10% share in the car industry, production abiilty reached 400,000 which is a huge shift from the original forty thousand, reaching most vehicles production local technology. Such actions mean Ford Motor Company is struggling to drive up the bargaining power of suppliers which is one of the most influential factors in Porter Five Forces Model. In the next part, it can be more explicit and more detailed through five forces to analysis how could Ford Motor do to win the share market and make the profit when enormous competitors flood into China market.

In more modern and developed areas in China, such as Beijing, Guangzhou and other cities, buyers basically have buying standardized products that branch from multiple suppliers is also completely available economy. If this is the case, the bargaining power of buyers tend to be increased, it also can cut the profit to car manufactures. In addition, with the rival competition in car field and a variety of dilemmas, this report will put forward to

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