...Overview of the Automotive Industry Malaysia automotive industry established on early 1960s. In the early 1960s, the development of automotive industry had become the attention from Malaysian government to build up the industrial base, at the same time to decrease dependency on the agricultural sector. Nowadays, automotive industry had become one of main income for Malaysia. The large demands from the resident of Malaysia make the automotive industry develop smoothly and rapidly, and well known as the biggest automotive customer market in South –East Asia. From the MAA 2012 report the total average sales of commercial car are 52,300 units every month (Kenanga research, 2013). There are 77 issues about manufacturing licenses by the Malaysia government but only have 35 manufacturers in operation at the year of 2012. In addition, almost 18 main well known car manufacturer in Malaysia market there are Proton and Perodua subsidise the most sales in the market and followed by Toyota, Honda and Nissan. Risk of Entry by Potential Competitors. In a country that is well developed such as Malaysia, we have competition from public transport companies. These include the KTM and several bus companies such as City Liner. When we look at risk of entry, it should be clear that a high risk of entry by potential competitors’ leads to an alteration of the profitability of the existing companies in the industry, simply because the more companies that enter, the smaller the market share of established...
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...decision was made to research new companies entering the market, have experienced mergers or globalization within the secondary sector with an emphasis on the automotive industry. Furthermore, a review of how pricing and sustainability of profits in the automotive industry is maintained. Government policies and regulations that influence the automotive industry, including taxes, and issues that are associated to externalities will be additionally reviewed. The automotive industry was established back in the late 1880s in Germany, where the first Benz was created. By World War II, the United States was the largest producer of automobiles with 75% of the global market. Between 1980 and 2000, a toggle back and forth between the United States and Japan on dominating the automotive industry occurred until most recently in 2011, China produced the equivalent amount of Japan and the United States combined. The automotive market has experienced a combination of influences on global production over the past five years. Much of the economic crisis influenced the industry, experienced a 12% reduction in 2009 and an increase of 26% in 2010, and a moderate increase of 3% in 2011 totaling 80 million cars in production (United States Department of Labor Bureau of Labor Statistics, 2012). The automotive manufacturing industry appears to be a vertical integration state. With companies as Ford that owns Lincoln, Mercury, and Volvo along with a 13.4% ownership of Mazda, one sees a variation...
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...Luxury Car Retailing & Trends Executive Summary A luxury car is indeed a status symbol that is a reflection of one’s personality and power in society. There is a steady increase in luxury car customers globally as there is a rise in income, wealth and urbanization. It is more of a dream come true of the rising middle class to purchase and own a luxury car. After the global financial crisis (Reyneke et al., 2012) hit the luxury auto market, it was interesting to find that the younger generation maintained their spending habits and joined the baby boomers who were already major consumers of luxury cars. However, the concept of cars being a boy toy has certainly evolved with the emergence of female consumers . These women are driven by their need to showcase their power and independence. The finest example are the Chinese and Middle Eastern women who have come out of their cocoons and protested against a male dominated culture and purchasing luxury cars were a part of that change. As the younger generation have become more environmentally conscious, luxury car retailers have adopted the ‘go green’ concept by bringing out diesel run and electric cars. Another trend that is picking up is the customization of cars. Luxury car retailers have chosen to customize their car for their customers providing them exclusivity and satisfaction as the customers get what they exactly want. The sales for luxury cars from 2012 to 2014 have been forecasted to increase steadily but there are...
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...INDIVIDUAL PRESENTATION ASSIGNMENT CAR INDUSTRY “GENERAL MOTORS UK LTD.” Student Name: Muhamad Aaron Bin Maseri Student number: Seminar Tutor: Seminar Session: Wednesday (2.00 p.m. – 3.00 p.m.) C118 Date of submission: 22nd April 2015 by 3.00 p.m. Word count: 1093 words (+/- 10%) TABLE OF CONTENTS 1. Slides and Notes * Slide 1-10 3-15 2. Research notes * Slide 2: Contents 16 * Slide 3: Introduction 17 * Slide 4: Size and Corporate objectives 18 * Slide 5: Growth 20 * Slide 6: Strategic group and main competitors 21 * Slide 7: Economic environment 22 * Slide 8: Competitive/industry environment 23 * Slide 9: Internationalisation/international environment 24 * Slide 10: Conclusion 25 3. Annotated Bibliography 26-28 4. References 29-30 1. SLIDES AND NOTES Slide 1 Slide 2 This presentation will mainly assess about the General Motors UK Limited background, size and corporate objectives, growth, strategic group and main competitors, the economic environment, competitive or industry environment, and internationalisation or the international business environment. This presentation will end with a short conclusion. Slide 3 Introduction The General Motors Company bought Vauxhall for $2.5 million in 1925 and since then, the company operates under General Motors...
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...Graduate School Econ 545 8-20-2014 GDP Growth Rate Automobile industry has been affected by many factors that cut across the US economy both internal and externally. Since the end of the recession, the GDP of the United States was subjected to various economic and political constraints. The same has happened in European developed countries and other Asian nations, where the level of debt has remained high and yet the development baseline scenario is still high. For the case of the United States and in close relation with the automobile industry, the output in terms of growth has remained stagnant and is continuously becoming constrained because of the highly deleveraging and tough influences and uncertainties of the outlined policies. J.D power and associates analyst Jeff Schuster stated that there was a reduction in the number of sales during the first half of 2011 economic year. The reduction is believed to have resulted from a lack of customer confidence on the products (Akerson, 2014). Macroeconomists have for a long time outlined that GDP strongly depends on consumption and the percentage of consumption dictating GDP at any given time stands at 70%. However, in August of 2011, the consumer based comfort index became the weakest since March of 2009, and the confidence level among the US-based consuming community dropped to the lowest level since the 2008 financial crisis (Hubbard & Antony, 2012). Automobiles are long term or durable products that most customers...
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...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 Company (EMC) 4. Methodology 5. Results 6. Discussion Challenges Facing Mercedes Benz UAE in the Export of Cars to Iran Introduction Mercedes Benz is a Germany based manufacturer of automobiles. It is a division of Daimler AG. Mercedes Benz as a brand engages in the manufacture of a wide variety of automobiles which range from...
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...Ford Motor Company Industry Background The Automotive Industry is one of the most important industries in the economic sector worldwide. Most of the industrialized countries produce their own brand of cars and/or trucks. According to the International Organization of Motor Vehicle Manufacturers statistics, during the year 2010, over 78 million of cars and trucks were produced in over 50 countries worldwide, with China, Japan and the United States as the world top three producers. The Automotive Industry started in Germany with the introduction of the gasoline power internal combustion engine in 1876 by Nikolous Otto (the same type of engine that is used today). In 1885 Karl Benz started the first production of an automobile, a three wheeler that was delivered for the first time in 1886. In Springfield Massachusetts, the Duryea brothers, Charles and Frank, were fascinated with Karls Benz’s idea of a “horseless carriage” and in September 1893, they successfully road tested their automobile on the streets of Springfield. The Duryea Motor Wagon Company became the first automobile production factory in America and by 1896 they had sold a grand total of 13 “horseless carriages” (Wright R.A, 1996). After the Duryea Brothers, many others followed with the most famous being Henry Ford, who established The Ford Motor Co. It was said that at one point America had over “one thousand small factories” producing automobile (Bellis M. n.d.). The Automotive Industry quickly became the...
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...Assessing the Environment In The US Automobile Industry US automobile industry started booming after the recession and became an important part of the US economy. Low interest rate, cheap gas price, and new technologies of car influence buyers to get a new car. The US automobile industry consists of almost 200 companies and their annual revenue is about 280 billion (Automobile Manufacturing, n.d.). Last year US automobile industry sold record 17.5 million cars and trucks, which is a 5.7% increase from 2014 fiscal year (Spector, Bennett, & Stoll, 2016). The top four US automobile manufacturers are General motors, Toyota, Ford, and Chrysler, who account for about 70% of the total automobile sales. US based automakers face rivalry problems with foreign companies such as Toyota, Honda, and Nissan because of their cheap labor cost and no union problem. However, these companies also have their assembly lines in US, and hold around 45% of the US auto industry. US automakers are also taking advantage of NAFTA by assembling autoes in Mexico and Canada with lower labor costs (Automobile Manufacturing, n.d.). Usually 75% of the materials account for the selling price of a US made car. US companies have also increased importation of parts from abroad which helps them increase their profitability. Features like extended warranty, extended service plan, safety features, and fuel efficiency help attract consumers and increase sales. US retail sales have increased 7.00%...
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...facility. As of the moment, it assembles passenger vehicles and serves its customers with around 200 employees. Moreover, there are seventeen authorized dealers of Nissan in the whole country. Nissan Philippines Research The ABS used in Mercedes-Benz, BMW, and Volvo cars is made in the Philippines. Ford, Toyota, Mitsubishi, and Nissan are the most prominent automakers that make cars in the country. A 2003 Canadian market research report predicted that further more investments in this sector were expected to grow in the next following years. Toyota has been the most used vehicle in the country. (http://www.termpaperwarehouse.com/essay-on/External-Analysis-Of-The-Philippines/38204) Automotive industry in the Philippines New Motor Vehicle Development Programs (MVDPs) However, the economic and political crisis in 1983 had a devastating impact on the expanding industry. Because of the declining market for Philippine exports and the resulting capital flight, the industry was left with only two international participants (PAMCOR-Mitsubishi Nissan) and in 1984. Furthermore, only 40 local parts manufacturers remained in operation, dramatically less than the participation of 220 firms 2 years before the crisis. More comprehensive programs such as the Car Development Program (CDP) and the Commercial Vehicle Development Program (CVDP) were implemented to address the shortcomings of earlier development programs and to provide a long-term solution to the ensuing economic crisis. Previous...
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...of Contents II. Acknowledgements III. Executive Summary IV. Introduction V. External Environmental Analysis 1. Definition of Industry 2. Analysis of Present Task Environment 3. Analysis of Potential Changes in the Macro-environment 4. Threats and Opportunities 5. External Factors Evaluation (EFE) Matrix 6. Industry and Competitive Analysis 7. Competitive Performance Matrix (CPM) VI. Analysis of Internal Environment 1. Company Overview 2. Corporate Values 3. Value Chain Analysis 4. Strengths and Weaknesses 5. Financial Analysis 6. Internal Factors Evaluation (IFE) Matrix VII. TOWS Matrix VIII. Strategic Plan 1. Vision and Mission 2. Objectives: Strategic and Financial 3. Evaluation of Present Corporate Strategies 4. Proposed Corporate Strategies 5. Corporate Social Responsibility 2 II. Acknowledgements Thank you to Ford Global City for answering all our queries about the company and its competitors. 3 III. Executive Summary Ford Global City is an automobile dealership that sells brand new Ford brand new Ford cars. They also provide car services, maintenance and repairs for these cars. In its 14 years of existence, they have been the top selling Ford dealer for 12 years in new car sales and service units received. With the existence of various competitors, not only with other Ford car dealerships but the entire automobile dealership industry as well, Ford Global City seeks to maintain its competitive advantage by promoting good customer services and having good...
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...This is an essay on the automotive industry. The writer is the Chief Executive of one of the car companies in the world and she will be looking at the car manufacturing industry to see how well the other companies are doing. She is going to be looking at things like their revenue, how much profit and losses they have made in the past years. Also the Chief Executive will be looking at the number of workers employed under the companies. The number of cars they produce and sell in a year will be analysed as well. She will also be looking at how much of the market share dose each company own. The Chief Executive will also be paying particular attention to how the concentration ratio has evolved over the years. All the information will then be put together so that the Chief Executive is able to propose a merger or takeover of one of the car companies to the company’s Executive Board in the upcoming meeting. Volkswagen Group is the third largest car manufacturing company in the world. It had a market share of 23.3 percent in Europe by the end of the year 2011. Its market share for the year 2010 in Europe was 21.3 percent. Volkswagen also controls about 20% of the Chinese market. The Volkswagen Group sold 3,167,068 cars in the year 2011 in Europe alone. They sold 2,938,515 in the year 2010 in Europe (European Traveller 2012). They sold over 8 million vehicles worldwide in the year 2011. The company experienced a 25.6 percent increase in sales revenue. Their sales revenue came...
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...www.businessmonitor.com Q1 2012 VIeTNAM AUTOS RepORT INCLUDES BMI'S FORECASTS ISSN 1749-0286 published by Business Monitor International Ltd. VIETNAM AUTOS REPORT Q1 2012 INCLUDING 5-YEAR FORECASTS TO 2016 Part of BMI’s Industry Report & Forecasts Series Published by: Business Monitor International Copy deadline: October 2011 Business Monitor International 85 Queen Victoria Street London, EC4V 4AB UK Tel: +44 (0) 20 7248 0468 Fax: +44 (0) 20 7248 0467 Email: subs@businessmonitor.com Web: http://www.businessmonitor.com © 2011 Business Monitor International. All rights reserved. All information contained in this publication is copyrighted in the name of Business Monitor International, and as such no part of this publication may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other means, without the express written consent of the publisher. DISCLAIMER All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Business Monitor International accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any...
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...Application of Porter’s Five Forces Model on Tata NANO Brand Name: Unit Name Unit Code Tutor School Date Introduction The turnover in automotive industry is growing significantly. Companies need to sell their product across borders. To realize this, companies must evaluate the market forces in target markets in order to increase sales. One strategic tool used in evaluating market forces is porters five forces model. This tool highlights the key factors that determine the industry competition and the viability of such a market. The porters five forces model has been evolving with time. The principle ‘’the state of competition in an industry depends on five basic forces’’ (Porter, 2008 P.3) is still relevant. This analysis model covers a wide range of factors affecting the industry. Companies with awareness about their environment are able to make strategic decisions concerning their business. This paper discuses the application of Michael porter’s five forces model by Tata Motors Company on their new product, Tata Nano. Tata motors are the largest automobile company in India with revenues in excess of USD 16 billion in 2011. Tata motors have subsidiary companies and associate companies involved in various industries including mining, oil, manufacturing, and telecommunications. Tata motors have operations in Spain, Korea, Thailand, UK, and South Korea. The paper begins by identifying porters five forces. Second, a brief history...
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...WORLD AUTOMOTIVE MARKET The global Automotive industry generated revenues of $1,469.3 billion in 2009 (Datamonitor, 2011), corresponding to the manufacturing of 57.6 million light vehicles1 (PwC, 2011). In 2011, this market rose sharply to 74.6 million vehicles and is expected to grow to 106 million vehicles in 2018 at a 5.2% CAGR in the period (PwC, 2012). The major contribution to this growth will come from emerging markets, with 84%, with the BRIC2 countries alone representing 64%. The Automotive industry is still a very concentrated market, where the top 12 manufacturers represent 83% of the units assembled in 2011 (PwC, 2012). Despite this market structure, there have been a few new entrants, such as Tesla Motors and BYD, both electric car manufacturers. In Table 1, an analysis of the Automotive market environment is presented. FACTORS Political COMMENT IMPACT ON DEMAND/SUPPLY Governments and municipalities interest in green vehicles Positive for green product lines Disposable income Growing wages in developing countries, growing middle class with purchasing power Positive Low interest rates in developed economies Positive Currency fluctuation Loss of competitiveness due to strong currencies (Dawson & White, 2012) Negative for Japanese /Brazilian Lifestyle changes Approach to Western lifestyle in developing countries, demand for low-end cars (Ayres, 2012) Positive Green issues Global awareness regarding...
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...St. John’s University Graduate Student Managed Investment Fund Presents: Tesla Motors, Inc.: TSLA Analysts: Rutvig Bhatt (rutvig@gmail.com) Yanchen Liu (yanchen.liu12@stjohns.edu) Gaoting Liu (liugaoting@gmail.com) Kevin Shanker (kevin.shanker05@stjohns.edu) Share Data: Fundamentals: Price 5/7/14: $201.35 GAAP EPS (FY Dec’13): -0.62 Market Cap: $24.80B E[EPS2015]: 1.83 52 Week Range: $63.69 – $265.00 Beta: 1.10 1 Contents 1. Executive Summary……………………………………………………3 2. Company Overview……………………………………………………3 3. Industry Analysis………………………………………………………8 3.1 Industry Overview…………………………………………………9 3.2 Analysis of Competitive Forces – Porter’s 5 Forces………………9 4. Fundamental Analysis………………………………………………..11 5. EPS Forecast………………………………………………………….24 6. Relative Valuation Model…………………………………………….29 7. Absolute Valuation…………………………………………………...32 8. Risk Factors…………………………………………………………..35 9. Conclusion and Recommendation……………………………………38 Reference………………………………………………………………..39 2 1. Executive Summary BUY recommendation based on our relative valuation model, EPS forecast, and absolute valuation model (for 7% or higher constant growth rate) : The average price estimate is $294.98，compared to the current stock price of $189 as of 5/13/14 . It shows that Tesla is undervalued. According to our result of absolute valuation model, Tesla can be priced between $92.88 and $304.87, depending upon the constant growth rate of free cash flows after...
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