SWOT Analysis: How to make a SWOT analysis, PESTLE analysis, Porter 5 Forces
The automotive industry is changing its structure quickly While Toyota has won 124 other billion kronor last year, GM has lost about 65 billion kronor Many mergers have taken place and other changes must Write produce a test indicating the PEST-find yourself factors have a strong impact and origin of these changes in the automotive industry also reflect on the changes you think will happen in the years ahead 1 introduction 1 analysis PEST is a process of verification and analysis of information on the environment.
The PEST analysis is a useful tool for market growth in understanding or decline, and as such the position, potential and direction of a company as a measuring tool business it is to monitor changes taking place in the environment and predict the future position PEST analysis could be a frame or examining a position strategy, the management of a company, a proposal for a marketing or idea it helps the company formulate its consistent business strategy with new opportunities in the environment.
Strategic response to environmental changes is the ultimate goal of the PEST PEST analysis is composed of the first letters of the four main factors political, economic, social and technological It helps to identify the key environmental influences, predict changes in the environment, and understand the interconnections between the influences related to macro environmental factors and environmental factors specific to the industry most companies in the industry conduct a PEST analysis to assess the prospects of their business and the sustainability of their investment.
Specifically, these four factors PEST cover all aspects of the external environmental analysis Political factors involve changes in government regulations such as planning changes economic factors include the health of the economy, how people are likely to be able to pay for goods and changes such as the level of interest rates, exchange rate social change factors include changing lifestyles and attitudes technological factors demographic trends involve changes such as the creation opportunities for new products and the improvement of products and marketing techniques.
Leaders of the auto industry nearly 60 million cars per year and employs millions of people worldwide Its products are responsible for the consumption nearly half the world's oil, and their manufacture uses almost half the World annual production of rubber, glass and 25 of its 15 of its steel No wonder the automobile industry represents about 10 of GDP in rich countries 2 in this article, above four PEST factors involved in the automotive industry detailed explained and studied in order to provide a clearer trend of development for the global automotive industry 2 influence of political factors on the automotive industry.
1 WTO and China 3 Since I come from China, the Chinese auto industry is more familiar to me to investigate As we know, China is becoming one of the major growth areas for the industry Recent figures show that in 2003, China has built more than 1 4 million passenger cars, a volume of nearly comparable to, for example, Italy, Spain and the UK as China entered the commercial organization the global WTO, this change of important political policy has had a significant impact on the automotive industry to the WTO entry of China China has a lot of positive influence on the domestic auto industry.
WTO accession can advance rapidly growing automotive market losses in terms of resources and social protection caused by excessive government protection on international trade is reduced and eliminated entry into the WTO can do lower prices for products used in the automotive industry trade liberalization spurs the development of international trade and stimulates exports of automobiles entering the WTO accelerates the development of the market for private car, as people could become the main force behind automobile purchases.
Due to a policy change policy, the automotive industry is indeed assigned to develop and auto companies must also take strategies to meet adapt to these changes 2 Government regulations Data Source BEA and BLS as described in the annual government Ward 4 sometimes announces a variety of regulations that could make an impact on the industry as regards the automotive industry, government regulations, such as improving the protection of consumer safety and fuel and improve emissions against air pollution, increased the total cost of automotive As seen above figure is made statistically by the U.
S BLS Bureau of Labor Statistics, the central part shows the average price of a car without regulated improvements in 1967 The lower part represents the additional protection of value for the safety and pollution emissions equipment The upper part is the price because of improvements unregulated together with other increases in quality and price, it is clear that government regulations have made great influences on the price of car products 3 vote for the new President 5 in the early days, motoring governments hope build public roads to boost customer demand.
Road construction was sometimes influenced by political ideologies If the government could take policies and measures to improve the transport system, the auto industry could be benefited many, this is why the vote of the president could affecting the automotive industry After the newly elected president who is in favor of public spending on roads wins the vote, the entire automobile industry in this country could have a bright future 3 Influences of economic factors on the industry now car almost its 100th anniversary of the automobile industry, it has the central health for a long time in the global economy.
The automotive industry is a major employer across all industry types An expense is often delayed if buyers are worried about the economy from the close relationship between economic conditions and the automotive industry, it is obvious that economic factors could affect the very 1 top automotive companies automotive industry with the global economy among the top automakers in the world, it is quite often observed that these businesses worldwide are taking strategies depending on the situation international and domestic economic U S.
Automakers are seeking stronger international links in response to what appears to be an economic global trend of the merger of Chrysler with Daimler-Benz already builds profitability while reducing each company's exposure to the vagaries of national economic cycles and consolidation trend continues negotiations are underway between Sweden Volvo and the Ford Motor Company, which already owns Jaguar in the UK regarding a potential link-up to cope with the recent economic global phenomenon downing two close relationship with fuel economy.
In fact, the auto industry is highly dependent on fuel and maintains close relationship with industry fluctuations in the fuel industry in an oil price environment and increasing politically unstable oil exporters addiction the question of fuel consumption continues to grow in importance the extent to which the automotive industry is able to find a good way to keep away from the trouble due to the fuel industry determines the development of the industry automotive objectives that some car companies have set themselves to reduce the average fuel consumption.
3 Various approaches for Japan and the United States face the global economic recession 6 continuous economic decline of Japan in the last decade has borne hard ebb industries, including its sales of Japanese cars domestic manufacturers are DOWNING and prognosis a large shift is not evident everywhere in the Pacific, the economic crisis of America's auto sales impact and the reality of stagnation of the economy continues this year is causing consumers not regarding this kind of discretionary spending.
Faced with this emergency situation, two different automotive markets have different approaches to stimulate demand in their domestic market and the global markets they serve Japanese companies tend to add technology, expand into new segments or find ways to rethink automotive systems to make them less expensive on the other hand, US companies maintain the same product and reduced the price by taking the margins of the car Finally, US companies will inevitably find that they have lost market share Japanese automakers 4 Influences of social factors on the automotive industry 1 Shift the social system.
While social forces continue to reshape the world, so has the automotive industry had to learn to adapt a view of the social aspect, the last two decades have seen the former Eastern bloc, the area of the former Soviet influence, past the socialist attitude that car ownership confers a rather dangerous degree of mobility and freedom, to the idea that those who can afford a car should have the right to own parallel to this change, many of these countries, in a manner of speaking, moved west to seal, or apply to become an EU member.
The automotive industry should find fascinating to see how large companies, particularly those in Western Europe, are redefining what constitutes their home European market 2 City map and automotive industry for growth outward cities accelerated, the suburbs began rapidly develop long before the factory workers lived either near the plant or in a high-density community further, connected to the plant by tram or train now, they live in low-density communities far from the city center and depend on the car as a tool of traffic.
Developing suburbs have created a few local jobs, and most residents commute to their jobs elsewhere and overall, the decentralization of cities accelerates the development of the automotive industry 3 personal attitude to wealth Today people increasingly like to show their properties Large income division becomes an inevitable social phenomenon the car quickly became a status symbol, and in some cases, a fashion element automotive, more than any other possession, enables people to flaunt wealth.
Not only the property of a demonstration car of a certain level of income and prestige and is still, especially in poor countries where the car isn t pervasive, it is also very visible He must do the automaker to produce automotive products of higher level to meet customers higher and higher requirements 5 Influence of technological factors on the automotive industry production 1 7 As the automotive industry assembly line and other mass production methods were developed when the auto industry began to look for ways to produce more cars at a lower price.
Here, the Japanese car companies conduct over the world with their lean manufacturing advanced technology and JIT just in time in 1960 The idea of using many identical small parts that could be exchanged from one another has been engendered once other automakers have realized the value of small identical parts that were interchangeable, they hired many shops small machines to make identical pieces which were then put together in assembly plants with this technological trend more flexible, spare parts could easily be sent to car owners.
This greatly extends the life of the car, making it even more attractive to consumers and could become global strategy car automotive 2 8 car manufacturers are investing heavily in new automotive products with new technologies that make cleaner products and more energy Among these technologies, the trend in terms of fuel consumption and reducing emissions has become more concentrated almost all development strategies Mew technologies for automotive product follows the central aim of improving the fuel economy of light weighted automotive products could be the best way to reduce fuel consumption in a direct way.
According to Patterson 8, the reduction in vehicle numbers, the redesign of the effectiveness of weight and alternative materials become three major strategies to reduce the weight of automotive But in future automobile manufacturers face pressure contravention of cost reduction to select cheaper products or lower standards against meeting the requirement of emission standards that are released by the government to improve air pollution There may be a trend that incentive economic provides automakers a market signal to develop new technology and produce less polluting cars.
6 Conclusion This paper has attempted to analyze environmental changes in the automotive industry with PEST four political factors, economic, social and technological thesis based on four different factors, global trends in the automotive industry could be covered and provided the big auto reaching effects on daily life have been many questions if the inclusion of external environmental factors mentioned above for car companies to make development strategies, industry automobile could be a bright future.
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PEST analysis for the automotive industry, pests, analysis, industry, changes in factors include.