Porter's 5 Forces and the Us Auto Industry
Research Project #2: Porter’s Five Forces Applied to the US Auto Industry
Ty Webb
State University
ECON 600
Dr. Frederic
(2.) Abstract This report focuses on the identification, analysis, and application of Porter’s Forces to the United States automobile industry. The report focuses on the application of Porter’s Five Forces to the industry as a whole, and is broken down into the individual applications of each force. Sources used in the production of this report are drawn from many disciplines and range from encyclopedia-based data, government reports, widely published periodicals, to industry opinions. The goal of the report is to give the reader a clear concise understanding of the US auto industry and a general picture of how Porter’s Five Forces are a relevant comparison tool for each aspect of the industry.
(3.) Introduction to the US Auto Industry
(3.1) Industry Defined The definition of the United States automobile industry is defined by its history and its evolution from the late 19th century to modern times. The industry dates back to the late 1890’s when early pioneers like Ransom Olds and Henry Ford engineered and refined automobile production and evolved the way people traveled. Through the wide spread and growing use of mass production, assembly line techniques and parts innovations, the eagerly thriving US auto industry grew rapidly. By 1920, the industry had three major firms to emerge as leaders in the industry. These three firms were Ford, General Motors, and Chrysler. Henry Ford’s company was the first firm to use assembly line methods to mass produce automobiles for widespread delivery. Mr. Ford also was a pioneer in the consumer lending area that allowed hard working American families to borrow money to help purchase their vehicles. Ransom Olds became a pioneer in the early parts development as he made mass produced auto parts that were interchangeable and thus allowing people to more easily repair their autos (“Industry History”,
Ty Webb
State University
ECON 600
Dr. Frederic
(2.) Abstract This report focuses on the identification, analysis, and application of Porter’s Forces to the United States automobile industry. The report focuses on the application of Porter’s Five Forces to the industry as a whole, and is broken down into the individual applications of each force. Sources used in the production of this report are drawn from many disciplines and range from encyclopedia-based data, government reports, widely published periodicals, to industry opinions. The goal of the report is to give the reader a clear concise understanding of the US auto industry and a general picture of how Porter’s Five Forces are a relevant comparison tool for each aspect of the industry.
(3.) Introduction to the US Auto Industry
(3.1) Industry Defined The definition of the United States automobile industry is defined by its history and its evolution from the late 19th century to modern times. The industry dates back to the late 1890’s when early pioneers like Ransom Olds and Henry Ford engineered and refined automobile production and evolved the way people traveled. Through the wide spread and growing use of mass production, assembly line techniques and parts innovations, the eagerly thriving US auto industry grew rapidly. By 1920, the industry had three major firms to emerge as leaders in the industry. These three firms were Ford, General Motors, and Chrysler. Henry Ford’s company was the first firm to use assembly line methods to mass produce automobiles for widespread delivery. Mr. Ford also was a pioneer in the consumer lending area that allowed hard working American families to borrow money to help purchase their vehicles. Ransom Olds became a pioneer in the early parts development as he made mass produced auto parts that were interchangeable and thus allowing people to more easily repair their autos (“Industry History”,
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