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Essay / The Global Automotive Industry - 942
Industry StructureOver the past 140 years, major manufacturers have operated in the global competitive market. The acceleration that has occurred since the early 1990s is due to construction from foreign locations and the future creation of merging multinational automakers over the course of development history. However, the global automobile markets have been divided into three main factors such as: (1) global market dynamics; (2) establishment of global alliances and (3) industrial consolidations. At present, the automobile manufacturing industry has established a high level of demand for capital and labor. In North America, the historic labor market and labor market grew into the Big Three, known as General Motors, Chrysler, and Ford Motor Company. In addition, two foreign manufacturers have become well established: Toyota and Honda. Example of Structural Picture of Automotive Industry Future Outlook According to a study, the main sellers of the automotive industry will change and the market will be totally different by 2019. New technological adjustments will take place and regulations on emissions and forces in fuel economy will also change. Additionally, major producing companies will emerge under a single business platform while strategizing for the near future. China will emerge and continue to grow its significant volume, surpassing India and other foreign and domestic markets. Overall, sales growth will slow its earnings from a double-digit annual percentage to a single-digit percentage. Analysis of Porter's five forces strategy applied to the automotive industry. Bargaining Power of Buyers The bargaining power of manufacturers within the automotive industry has faced undisputed difficulties and unlimited potential buyers since the dawn of time. Over time, American consumers became annoyed with the everyday styling of automobiles and desired significant change. Foreign and domestic cars were the lifestyle of these consumers, but their preferences were focused on lower prices for their purchases. Bargaining Power of Suppliers The regional market has oriented its supplier power towards the regression of technology as it has progressed in recent years. triggering new norms and patterns of structural change within the automotive industry. A large number of investments had put pressure on the lower level of the probability functions, creating risk due to recourse to liquidity problems and bankruptcy. Strategic positioning over the next few years is expected to expand and eliminate difficult mistakes of the past, creating new dynamics and growth opportunities..