Analysis of the Motor Industry Using Porters Five Forces Model and Pestle Analysis Free Essay Example, 2000 words

The suppliers to the industry are the parts manufacturers. For each vehicle type in production, there are numerous suppliers. Suppliers traditionally hold very little power here; there are many more suppliers of motor parts than manufacturers using them. Many suppliers find that a significant portion of their production goes to one or two buyers. Although the market for parts used in repairing vehicles is greater than the market for supplying new car manufacturers, it must be remembered that is a car manufacturer switched to a different company to supply a particular part the supplier will also lose business in the car parts for the repair market as they lose the status of manufacturer approval. As a result parts manufacturers have to be responsive to the needs of car manufacturers, and their bargaining power is low. The strength of this force is therefore low as well. Historically it had been considered that the threat of new entrants was so low as to be approaching zero and the J apanese manufacturers entered the market. It is unlikely that there will be new entrants to this industry, but it cannot be completely discounted. We will write a custom essay sample on Analysis of the Motor Industry Using Porters Five Forces Model and Pestle Analysis or any topic specifically for you Only $17.96 $11.86/page