ECONOMICS

Strategic Planning & Industrial Analysis

Strategic Planning & Industrial Analysis

Introduction

The positive movement in the economy has geared up and fueled the automobile industry again. The automakers are now utilizing the power of technology in order to make their cars efficient and economical. World renowned automakers are now on the view to capture the major portion of market through innovation in technology. Globally, the automotive industry is the largest manufacturing sector all around the world. The industry also serves as the brand ambassador of some countries. For example: (GM) termed themselves as the American proud. There is a large automotive industry in countries such as the United States, Germany and Japan. These countries serve as the major players of producing cars in the whole world. In these countries, approximately 69 million cars have been made in 2006.

Discussion

Automobile Industry

The global auto industry is huge, with high sales and high competitive intensity. Increasingly, automakers are working to develop a wide range of vehicles to appeal to every customer. The automobile industry in United States is highly competitive and hence the organizations are required to embrace meticulous strategies to keep up in business. Five of the major competitors in the automobile industry of United States are Toyota, General Motors (G.M), Ford, Daimler Chrysler and Honda. To be at the forefront of the competition, these five firms have embraced strategies, which are similar in nature, aimed at giving them competitive advantage.

Market Share of Automobile Industry Toyota Motor Corporation, net sales of 296 billion U.S. dollars (2009)

Ford Motor Company LLC, net sales of 147 billion U.S. dollars (2008) General Motors Company LLC, net sales of 149 billion U.S. dollars (2008) Daimler AG, net sales of EUR 96 billion (2009) Honda Motor Company, Ltd., a turnover of 120 billion U.S. dollars (2009) Nissan Motor Company, Ltd., net sales of 93 billion U.S. dollars (2009) Fiat Spa, net sales of EUR 55 billion (2008) PSA Peugeot Citroën SA, net sales of EUR 54 billion (2008) Bayerische Motoren Werke AG, net sales of EUR 53 billion (2008) Renault SA, net sales of EUR 38 billion (2008) Mazda Motor Corporation, net sales of 38 billion U.S. dollars (2007) Suzuki Motor Company, net sales of 33 billion U.S. dollars (2008) Mitsubishi Motors Corporation, annual turnover of 22 billion U.S. dollars (2008) Tata Motors Limited, net sales of 16 billion U.S. dollars (2009) Chrysler Group LLC

Hyundai Motor Company Kia Motors Corporation

Purpose of the paper

The paper highlights the industrial analysis of the automotive industry on the other hand, it also analyze the macro-environmental analysis of the automobile industry. The paper highlights the new trends and developments keeping inv view the example of automobile makers but focusing on the industry comprehensively. The paper also analyzes the industry profitability and its determinants.

Macro environmental analysis

The major technological implication which serves as a competitive advantage in the industry has been the use of green fuel and sustainable technology. The companies gave increased the efforts in this sector keeping in view the future of green ...