Competitive Strategy: Porter's Five Forces In The Automobile Industry

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3.3 Porter Five Forces. Porter 's Five Forces is model of analysis that helps to describe why different sectors have the ability to sustain different levels of profitability. This model was originally published in Porter 's book, "Competitive Strategy: Techniques for Analyzing Industries and Competitors" in 1980. This model is widely used around the world, to analyze the industrial structure of the company and also its corporate strategy. Porter identified five discovered five undeniable causes that play a part in shaping every market and industry in the world. The forces often used to measure the intensity of competition, attractiveness and profitability of the industry or market which is: I. Competition in the Industry. Geely Company Toyota Company • .Automobile industry nowadays growth rapidly because of the new invention from…show more content…
Every each automobile company in china produced a different product which is a their own unique, for example LG panda, LG panda is one of the successful product that gain highest income and get a five star safety small-car in China. Based on this unique product, Geely Company attract more China citizen to buy the product with reasonable price, very comfortable a d suitable with China environment. This situation show that the supplier have a power if the more company hold on them. • Toyota supplier aim to influence the firm to improve their business. In Toyota case, external factors in automobile industry contribute to the weak force power of supplier. The limited population of supplier around world creates a moderates force that influence Toyota. In a simple word, bargaining power become higher when the supplier are fewer. Yet, the high availability of supply used for production Toyota 's products weakens suppliers ' power. Toyota solve this issues, Toyota have a unique product that can make supplier attracted to supply their

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