5 FORCES ANALYSIS
The economic structure of an industry is not an accident. Its complexities are the result of long-term social trends and economic forces. But its effects on you as a business manager are immediate because it determines the competitive rules and strategies you are likely to use. Learning about that structure will provide essential insight for your business strategy. Michael Porter has identified five forces that are widely used to assess the structure of any industry. Porter’s five forces are the:

In a simple word, we can define that the Threat of new competition is a profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents, the abnormal profit rate will tend towards zero (perfect competition).
Threat of substitute products or services is the existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. Note that this should not be confused with competitors' similar products but entirely different ones instead.
Bargaining power of customers (buyers) is the bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.
Bargaining power of suppliers is the bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes.
Competitive among rivalry for most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. The competition in automotive industry can be said as strong. For example, we try to see how PROTON brand product categories placed itself against its competitors, namely Toyota and Honda. Product extensions for each brand are grouped together. Under ‘Luxury’ category, there is no compatible PROTON product as to compare with Toyota Camry or Honda Accord. However for ‘Executive’ category, we are comparing PROTON Perdana against Toyota Altis and Honda Civic. PROTON Waja is grouped together with Toyota Vios and Honda City while for MPV category, we grouped the newly launched PROTON Exora with Toyota Avanza. As for compact car category, we put PROTON Savvy, Toyota Yaris and Honda Jazz in the same group.
From here we figure that PROTON cars are available in almost all product categories as what the competitors have. In term of price, we see that for most of the categories, PROTON cars are more competitively priced rather than Toyota or Honda.

Category
Category
Brand
Brand
| Luxury | Executive | Family | MPV | Compact | Proton | - | Perdana | Waja | Exora | Savvy | Toyota | Camry | Altis | Vios | AvanzaWish | Yaris | Honda | Accord | Civic | City | Stream | Jazz |

Based on my opinion, the overall strength of competition in automotive industry can be evaluated in two categories. Firstly, in term of rivals in automotive industry that can be said as strength. This is because in the industry, there are many competitors compete each other. For example Honda, Toyota, Suzuki, Perodua, Volkswagen, and many more. There also have a rival enter the industry to challenge the product such as Cherry.
On the other hand, in terms of product introduced by the competitor in the industry, it also can be said as strong competition because at least every two years the automotive manufacturer will come up with an innovative product that offer new and unique design to capture consumer intention in order to purchase their product.