External Analysis of Automotive Industry
External Analysis of The Automobile Industry
The automobile industry is an extremely large and complex industry that is made up of many different businesses that all share a part in the manufacturing, sale, service and financing of automobiles. This industry makes up a large part of the United States economy as well as the world economy, and therefore is important to understand. To understand the automotive industry it is best to look at the industry, market, and competition that shapes it.
Industry
The automotive industry is a business sector that produces and sells automobiles to a number of different outlets. The categories of automobiles that the automotive industry produces are sedans, minivans, SUV’s, light trucks, and pick up trucks. The automotive industry is tied to many other industries. These industries produce products used in the automotive industry as well as products that are very similar to the ones that the automotive industry produces. Examples of similar industries include but are not limited to truck and bus manufacturing as well as the trailer and motor home manufacturing industry. Other similar industries include those that produce the pieces and parts necessary to manufacture and maintain the automobiles that the automotive industry produces. For example, industries such as metal production, rubber, textile, plastics, glass, and petroleum are all necessary to the production of automobiles and therefore are related industries.
The automotive industry is one of the largest industries in the world according to sales revenues, and its well-being is extremely dependent on the economy. This became apparent when the economy took a large downturn and the automakers suffered greatly. The automotive industry makes up a large and important part of the U.S. and world economy with total sales revenues of over two trillion dollars annually (First Research, 2012). As mentioned earlier the health of the automotive industry and a healthy economy
The automobile industry is an extremely large and complex industry that is made up of many different businesses that all share a part in the manufacturing, sale, service and financing of automobiles. This industry makes up a large part of the United States economy as well as the world economy, and therefore is important to understand. To understand the automotive industry it is best to look at the industry, market, and competition that shapes it.
Industry
The automotive industry is a business sector that produces and sells automobiles to a number of different outlets. The categories of automobiles that the automotive industry produces are sedans, minivans, SUV’s, light trucks, and pick up trucks. The automotive industry is tied to many other industries. These industries produce products used in the automotive industry as well as products that are very similar to the ones that the automotive industry produces. Examples of similar industries include but are not limited to truck and bus manufacturing as well as the trailer and motor home manufacturing industry. Other similar industries include those that produce the pieces and parts necessary to manufacture and maintain the automobiles that the automotive industry produces. For example, industries such as metal production, rubber, textile, plastics, glass, and petroleum are all necessary to the production of automobiles and therefore are related industries.
The automotive industry is one of the largest industries in the world according to sales revenues, and its well-being is extremely dependent on the economy. This became apparent when the economy took a large downturn and the automakers suffered greatly. The automotive industry makes up a large and important part of the U.S. and world economy with total sales revenues of over two trillion dollars annually (First Research, 2012). As mentioned earlier the health of the automotive industry and a healthy economy
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