Premium Essay

Swot Analysis Of Automobile Industry

Submitted By
Words 1412
Pages 6
I. Introduction Automobile industry globally and in India is one of the key sector to economy. The well-developed Indian automotive industry produces a wide variety of vehicles, passenger cars, light medium and heavy commercial vehicle multi utility vehicles such as jeeps, scooters, motorcycle, mopeds, three wheelers, tractors and other agricultural equipment etc. India is emerging as one of the world’s fastest growing passenger car markets and second largest two-wheeler manufacturer. It is also home to the largest motorcycle manufacturer and the fifth largest commercial vehicle manufacturer. The industry currently accounts for almost 7% of the country’s GDP and employs about 19 Million people both directly and indirectly. It’s currently the seventh-largest producer in the world with an average annual production of 17.5 Million vehicles, of which 2.3 Million are exported. The Indian automobile market is estimated to become the 3rd largest in the world by 2016 and will account for more than 5% of global vehicle sales. It is the …show more content…
Commercial vehicles are also shows increasing trends from 2009-2010 i.e. 5,67,556 to 8,32,649 in 2012-2013.Three wheelers has been increased from 2009-10 to 2012-13 but during 2013-14 it’s decreased due to lack of economic development and again in 2014-15 production has been increased to 9,49,021 respectively. And in case of Two Wheelers it maintains the increasing trends from 2009-2010 i.e.1,05,12,903 to 1,84,99,970 in 2013-2014.The industry produced a total of 23,366,246 vehicles including passenger vehicles, commercial vehicles, three wheelers and two wheelers in April-March 2015 as against 21,500,165 in April-March 2014, registering a growth of 8.68 percent over the same period last

Similar Documents

Premium Essay

Bus475 Week 3 Lear Part 2

...Lear Corporation Part II: SWOTT Analysis BUS/475 December 14, 2015 Lear Corporation Part II: SWOTT Analysis New division of Lear Corporation will be engaged in retail and communication sphere of automotive sector. It is crucial for every business to conduct SWOTT analysis, which will give an overview on the situation within the business and on possible challenges and potential victories. The table below represents the parts of external and internal analysis of a new division, which is SWOTT analysis (Free SWOT Analysis, 2012): Strengths | Weaknesses | * Strong connection with the suppliers * Initial competitive advantage * Support of innovation * Research & development investments * Positive image and history of Lear in the eyes of legal authorities and in the eyes of the society * Global presence and further expansion of the global low-cost footprint * The initiative of ‘going green’ | * Strong connection with the ‘mother’ company and its previous possible bad lucks * High dependence on the limited number of suppliers * Substantial indebtedness of the whole company | Opportunities | Threats | * Increase in sales due to the increased interest in hybrid automobiles * Increasing influence of positive image by sustainable development initiatives * Growth opportunities throughout the states * Becoming best in the future industry due to a strong competitive advantage * Implementing social/loan programs to bring greater value to the...

Words: 1070 - Pages: 5

Premium Essay

Bmw Company Swot Analysis

...Running head: BMW SWOT Analysis BMW Motor Corporation SWOT Analysis Name Affiliation Date Abstract A SWOT Analysis is used to develop strategies that capitalize on an organization’s strengths, minimize the effects of any weaknesses, exploit available opportunities and defend against threats. In this report, I discuss SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis of the BMW Motor Corporation. BMW Motor Corporation SWOT Analysis BMW Motor Corporation is world-renowned luxury car manufacturer that has obtained a status of superb automotive engineering. BMW Motor Corporation has achieved its status through successful business planning, strategies, and vision by offering new and innovative features to their products. As a car manufacturer, there are numerous external influences that can positively or adversely affect the outcomes of BMW Motor Corporation. Some factors include but are not limited to the state of the current economy, the current and future supply of fuel resources, the supply and demand of automotive parts- and the most demanding of all- the needs and wants of the consumer. If we recall, the United States was hit by a recession that affected many industries including the automotive industry. In fact, the automotive industry appeared to be one of the hardest hit areas during times of recession. In response, The United States implemented a program called the car allowance rebate...

Words: 1372 - Pages: 6

Premium Essay

Cadillac Automotive Market Structure

...based automobile manufacturer that manufactures luxury vehicles. The company is owned by General Motors. Cadillac originally used to make carriages. The company sells in more than three dozen countries with its major operations centered in North America. It is known to be the second oldest automobile manufacturer in U.S. after GM and Buick. The industry Cadillac operates in is highly lucrative and money making (SWOT analysis of General Motors, 2013). The luxury cars do not make money by mass production rather by selling on premium prices. Here is the analysis of the industry Cadillac serves in and a discussion of its market structure (Automotive Strategy, Planning & Analysis: IHS Automotive, 2013). MARKET STRUCTURES The market structure tells the way business is done in an industry. The market structure can be of four basic types. A market may have strong government regulations or no government intervention at all. Also the market structures differ on the basis of companies in an industry. Following table describes how automotive industry differs from other industries and what market structure it has. Cadillac Automotive | Oligopoly | Perfect competition | Monopoly | Monopolistic Market Structure | Industry: Automobiles * There are multiple automobile manufacturers * Some of the major players are GM, Ford, Toyota, Honda, Ferrari, Lamborghini, and BMW. | The oligopoly market players may offer same or different products or services. The example is automobile industry...

Words: 1788 - Pages: 8

Premium Essay

Challenges Facing Emirates Motor Company

...the Importation of Automobiles from Germany to UAE Name of Student Name of Instructor Name of Institution Date of Submission Executive Summary There are a number of challenges faced by organizations wishing to conduct business with other firms in a foreign country. The reason behind this is that the organization will be required to engage either in the importation or exportation of goods or services. The Emirates Motor Company has for many years engaged in the importation of Mercedes Benz from Germany into the UAE. One of the major challenges that the organization has suffered is lack of sufficient funding. As such, the organization has not been in a position to fully exploit the UAE market. The company also has to deal with high cost of operations. Importation activities require firms to pay for shipping and loading charges for the goods. The importer also has to incur insurance charges. The costs result in an increase in the cost of commodities making them undesirable to customers. Delays in payment also make it difficult for the company to replenish its stock. Outline 1. Executive Summary 2. Introduction 3. Literature Review a) An Overview of the Emirates Motor Company’s Import Business b) History of Importation of Mercedes Benz Automobiles from Germany to the UAE c) External Analysis of the World Automobile Industry d) External Analysis of the Trade between the UAE and Germany in Automobiles e) Internal Analysis of the Emirates Motor...

Words: 6087 - Pages: 25

Premium Essay

Toyota Motor Corporation Swot Analysis

...SWOT Analysis of the Toyota Motor Corporation Yewande Adeniyi Davenport University Busn520 Dr. Thomas Steinhagen March 15, 2013 SWOT Analysis of the Toyota Motor Corporation Yewande Adeniyi Davenport University Busn520 Dr. Thomas Steinhagen March 15, 2013 Table of Contents Abstract….3 Introduction….4 Strengths….4, 5 Weaknesses….5 Opportunities….5, 6 Threats….6 External Factors….6, 7 Recommendations/Conclusion….7, 8 References….9, 10 Abstract This paper outlines a complete SWOT analysis report of the Toyota Motor Corporation (TMC). According to Mindtools.com, a SWOT analysis is tool that is used to analyze the strengths, weakness, opportunities, and threats that a company may have or encounter in its business dealings (2013). A SWOT analysis can be used in the form of an “ice breaker,” whereby one can used it an introduction of sorts about a company. However, the best possible way to use the SWOT analysis is as that of a strategy tool. It can be used as a tool to weave out the things the company may not need, improve on processes that may not be functioning properly and increase company profits (Mindtools, 2013). This paper focuses on the internal and external networks of the TMC to come up with a strategy that will increase the company’s strength, decrease or eliminate company weakness, provide more opportunities, and weave out potential threats and failures. SWOT Analysis of the Toyota Motor Corporation Introduction/Overview The Toyota Motor Corporation is an international...

Words: 1709 - Pages: 7

Premium Essay

Bmw Organisational Analysis Andhuman Resources Policies

...Organisations, Analysis and Policy REPORT To: Senior Management From: Group Accountant Date: 2nd May 2005 Subject: BMW Organisational Analysis andHuman Resources Policies This report will provide a detailed analysis of BMW'scurrent corporate appraisal analysis. This will help to identify the company'scurrent strength, weaknesses, opportunities and threats. This will help thecompanies decision makers understand where the organisation is now. The reportwill also critically evaluate BMW's human resources policy as a key area of theorganisation. We will highlight how BMW has strategically responded to thedrivers for change in terms of its structure, conduct and performance. Finally,offer recommendations for the future development and improvements in humanresource management, and how those will impact on its organisational structure,conduct and performance. Struggling with your business essay(s)? Did you know that we can help you with your SWOT analysis essay and any other business essays? We can help you! Place an order with us and you'll get: * An exact, 100% original answer to your essay question * From a graduate writer, qualified in your subject area * Delivered confidentially by email, in 3 hours - 10 days (you choose) Stop struggling and get the help you need from the UK’s favourite student support company, right now. Learn more about our custom essay writing service, or place your order using the box below: Company Background The BMW Group is the only...

Words: 1258 - Pages: 6

Premium Essay

Swot Analysis

...SWOT analysis of Ford and Toyota SWOT ANALYSIS “Opposition is an inevitable part of change and one that can significantly impact your community organizing. However, if you know how to take stock of the opposition inside and outside of your effort or group, you are more likely to plan and act effectively.” That's where SWOT analysis comes in. SWOT can help you handle both ordinary and unusual situations in your community health or development initiative, by giving you a tool to explore both internal and external factors that may influence your work. SWOT analysis, founded by Albert Humphrey, is a compacted planning method used to determine the strengths, weaknesses, opportunities and threats involved in a business or in a project. SWOT analysis can be used for product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. There are lots of advantages of using SWOT analysis. When a single person is considered, it is a useful technique for understanding his Strengths and Weaknesses, and for identifying both the Opportunities open to him and the Threats he faces. When SWOT analysis is used in business context, it helps you carve a sustainable niche in your market. it can helps to uncover opportunities for the business. And by understanding the weaknesses of the business, threats can be managed and eliminated that would...

Words: 2425 - Pages: 10

Premium Essay

Ford`S Outsourcing Problem

...Problem Ford Motor Company is an automobile Multinational Enterprise established in Detroit in 1903. Ford has been sustaining heavy profit losses in its European operations due to the economic downturn affecting most of Europe. The “company now expects Ford Europe’s pre-tax loss for full year 2012 to exceed $1.5 billion” (http://media.ford.com/images/10031/3Q2012_Financials.pdf, 2012). “Business refers to any type of economic activity in which goods or services are supplied in exchange for some payment” (J. Morrison 2010) and in this case Fords European vehicle sales market has been saturated through less demand for its products. Ford said European car sales across the industry were the lowest in 20 years (BBC News, 2012). The main losses are being sustained within Europe in which Ford operates in 51 different European markets. Ford`s strategy is likely to be offshoring manufacturing of the Transit Van, meaning the closure of its South Hampton Factory with immediate redundancies of 500 employees with closing parts of the Dagenham Plant which will push redundancies to 1400. Although is this likely to be the answer? What will be the effect upon the microeconomic factors? Especially the level of job losses of stakeholders, including suppliers and employees, further down the chain. Is it ethnical of Ford to simply offshore production to a cheaper labour area such as Turkey or is this just a simple case of how Britain’s Manufacturing industry is further declining? Will this damage...

Words: 1626 - Pages: 7

Premium Essay

The Challenge That Faces Telsa Motors Trying to Enter the Chinese Market

...trademark is an international recognized concept but in some overseas market there can be problems with the mark of a Corporation. The best way to overcome these matters can be through franchises with existing domestic Corporations. Telsa Motors, Inc. is an American multinational Company that manufactures designs and sells electric vehicles, components of power train and battery products. Telsa is a publicly traded Company that sells its stock on the NASDAQ stock exchange market under the symbol TSLA. Marc Tarpenning and Martin Eberhard started Tesla Motors way back in 2003 (Hettich and Stewens 3). Business has been average for Telsa Motors, Inc and it is only on 2013 when Telsa Motors posted their first profits since the year 2003. An analysis of Telsa Motors reveals that they have ventured into the Chinese market where it is expected that they face several challenges and influences from the business environment. Telsa Motors trades its shares on the NASDAQ stock exchange...

Words: 3588 - Pages: 15

Premium Essay

Swot Analysis Toyota Industriescorportaion

...Toyota Industries Corporation Company Profile Publication Date: 6 Mar 2009 www.datamonitor.com Datamonitor USA 245 5th Avenue 4th Floor New York, NY 10016 USA t:+1 212 686 7400 f:+1 212 686 2626 e:usinfo@datamonitor.com Datamonitor Europe Charles House 108-110 Finchley Road London NW3 5JJ United Kingdom t:+44 20 7675 7000 f:+44 20 7675 7500 e:eurinfo@datamonitor.com Datamonitor Germany Kastor & Pollux Platz der Einheit 1 60327 Frankfurt Deutschland t:+49 69 9754 4517 f:+49 69 9754 4900 e:deinfo@datamonitor.com Datamonitor Hong Kong 2802-2803 Admiralty Centre Tower 1 18 Harcourt Road Hong Kong t:+852 2520 1177 f:+852 2520 1165 e:hkinfo@datamonitor.com Toyota Industries Corporation ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and...

Words: 2621 - Pages: 11

Premium Essay

Management

...499 Module 2: Strategic Management: External Analysis In this module, my case assignment was to perform an external analysis of Toyota. Like other companies, Toyota operates in a complex global industry. In order to develop and execute a successful strategy, the Toyota Corporation must take into account the global automotive environment. As part of strategy Toyota must look at their current opportunities in the market. Along with these opportunities, Toyota also faces some threats. Toyota has taken many actions to respond to these environmental contingencies. Based on my analysis, Toyota should continue to focus on its customers, as well as coping with change, and announcing their responses to its customers. Toyota Motor Corporation is a multinational automaker headquartered in Toyota, Aichi, Japan; in the current market they have many opportunities. Currently, Toyota is one of the world’s largest automobile manufactures and employs over 300,000 employees. A major opportunity for Toyota is the new fuel efficient cars that they are producing. With the oil prices reaching record highs, Toyota has the advantage over other car manufactures with their more fuel efficient cars. This is one of their keys to success right now. Toyota is also producing cars that are targeted towards the younger generation of drivers. A great deal of money can be made here also. Acting on any opportunities in the automobile market is a risk taking action, and risk is associated...

Words: 1063 - Pages: 5

Premium Essay

Case Study Report

... BMW Automobiles [pic] Group Members Daniel Smentek, 13264679 Melanie Bernroitner, 13264682 Marie-Charlotte Neumann, 13264640 Submitted on, May 16, 2006 Table of Contents Executive Summary 4 Introduction 5 BMW and the Automobile Industry 6 Aspects of the Automobile Industry 6 Historical Background of BMW 6 BMW in the Global Environment 9 General Environment of the Automobile Industry 9 Five Forces of the Automobile Industry 14 Competitive Structure of the Automobile Industry 17 BMW’s Direct Competition 22 BMW’s Resources and Capabilities 25 Tangible Resources 25 Intangible Resources: 28 Capabilities 29 Core Competencies 30 Potential Action Steps for BMW 33 BMW’s Strategy towards Success 37 References 41 Appendices 45 List of Illustrations Figure 1: Report's Course of Action 5 Figure 2: Labour Costs in EU Countries 2005 11 Figure 3: Outcome of General Environment Analysis 14 Figure 4: Evaluation of Porter's Five Forces of Competition 17 Figure 5: Strategic Map 20 Figure 6: Profit Margins 26 Figure 7: SWOT Analysis BMW 2006 33 Executive Summary The following report analyses the automobile operations of the BMW group in regard to its competitive position in the automobile market. BMW is a German premium car manufacturer comprising the three brands BMW, Mini and Rolls-Royce. The analysis of the external...

Words: 8399 - Pages: 34

Premium Essay

Gm Swot Analysis

...Chong Tan (Charlene) Management Policies and Practices Marc Hamilton 24 October 2012 GM SWOT Analysis As one of the world’s largest automobile manufacturers, General Motors (GM) was found in 1910. Today, GM has become an essential organization in the US that has a significant impact on the overall economy. GM markets its products under these well-known automobile brands: Buick, Chevrolet, GMC, FAW, Daewoo, Cadillac, Holden, Jiefang, Vauxhall, Opel, and Wuling. Followed by the US, Brazil, UK, Canada, Italy, and Germany, now China has become the largest market for automobile industry. SWOT analysis stands for the analysis on strengths, weaknesses, opportunities, and threats. Strengths: The first strength GM has is its brand value and image. Since 1910, General Motors has established a stable market share along with Chevrolet, Cadillac, and Buick and become a household name. Moreover, GM brand is rooted not only in the US but also throughout the whole world. Second, General Motors has a large global presence as well. GM truly has a big worldwide presence that it has manufacturing, assembly, and warehouse operation in 55 countries. Third, high quality products and services have always been the center for the company for achieving success. Finally, GM has a significantly high market share that it runs the business in 157 countries. Weaknesses: First, GM has complied more than 1000 dealerships for closure. At the end of 2008, General Motors had 715 dealerships in Canada...

Words: 828 - Pages: 4

Premium Essay

Toyota Marketing Strategy Audit

...Executive Summary Toyota is arguably one of if not the most success automobile manufacturing companies in the world. With annual revenue of over $200 billion and over 300,000 employees across 27 countries, even the smallest decisions could have huge repercussions. It is the purpose of this audit to offer a in depth review and examination of Toyota’s marketing environment, objectives, strategies and activities to determine what are the key elements of their success, potential issues the need to avoid or improve on and any new opportunities to further maintain their position as industry leaders. Toyota has positioned itself as one of the automotive industry leaders with the highest market share when based on sales volumes. Toyota also maintains this strong market position across many countries. Toyota has developed a wide range of vehicles catering for all types of customers, from low to very high income, with easy access to their products thanks to a global distribution system. The company makes a strong effort to be well rounded and remains strong in innovation, brand reputation, good prices and international relationships. This strong market position is largely attributed to Toyota’s value proposition to provide customers with the best range of models, at affordable prices, all whilst maintaining our long-standing reputation for manufacturing excellence and for producing high quality vehicles that are safe and reliable. The efficiency and capacity of the Toyota production...

Words: 3368 - Pages: 14

Premium Essay

Marketing

...Ford SWOT Analysis Ford Motor Company has been a well-established company in the automobile industry since the early 1900’s and has been going strong ever since. Starting on a small-scale, Ford has become one of the leading international automobile makers in the industry, and continues to reevaluate itself in order to gain a competitive edge. One tool that a company can use is a SWOT analysis, which is used to identify internal and external factors that may affect the company moving forward in accomplishing its goals. The internal factors include strengths and weaknesses of the company, while external factors are comprised of opportunities and threats. Each of these areas helps a company determine how they want to adapt to their ever-changing surroundings and how they improve from their current state. A strength that numerous Ford customers can agree on is the brand recognition that it has because it is such a well established global power. The globalization of Ford is has helped it grow and is now established in the largest economies in the world. Along with this comes the customer loyalty, because people develop a sense of trust with Ford once attracted initially by the brand power. Also, the brand is recognizable and similar in perception to many customers because the cars do not vary as much from region to region, somewhat creating a Ford community. The brand power enables Ford to attract the customers initially, and then they are able to develop long lasting relationships...

Words: 626 - Pages: 3