Porters Five Forces Analysis of Automotive Industry in Pakistan and Bangladesh
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You are working as Head Strategic Planning for a US Based Company (ALPHA Enterprises) that is engaged in (Vehicle or Electronics Item) manufacturing and selling business in US and Europe. As per Company’s Global Expansion Plan, ALPHA Enterprises desires to expand its business network (Both Manufacturing and Selling) either in Pakistan or Bangladesh. Your Department has been tasked by CEO to conduct a Strategic analysis of Business/Industry for both the countries. Keeping this in mind
Q1: Conduct a Strategic Analysis using Michael Porters Five Forces and on the basis of said analysis recommend the Country that is more feasible for investment?
Michael Porter’s competitive forces model * Provides general view of firm, its competitors, and environment * Five competitive forces shape fate of firm a. Traditional competitors b. New market entrants c. Substitute products and services d. Customers e. Suppliers
We will discuss those points one by one for automobile industry with respect to Pakistan and Bangladesh.
Automotive Industry in Pakistan:
The Automobile industry has been an active and growing field in Pakistan for a long time, however not as much established to figure in the prominent list of the top automotive industries. Despite significant production volumes, transfer or technology remains low. Most cars in the country have dual fuel options and run on CNG (compressed natural gas) which is more affordable than petrol in the country.
The automobile industry in Pakistan can be broadly categorized into following segments:
* Cars and Light Commercial Vehicles (LCVs). * Two and Three Wheelers. * Tractors. * Trucks and Buses * Vendor Industry
Traditional Competitors:
There are only three major passenger car assemblers in the market; Pak Suzuki, Indus Motors and Honda Atlas. Pak Suzuki has a almost complete monopoly in the small car segment as it faces almost no competition
You are working as Head Strategic Planning for a US Based Company (ALPHA Enterprises) that is engaged in (Vehicle or Electronics Item) manufacturing and selling business in US and Europe. As per Company’s Global Expansion Plan, ALPHA Enterprises desires to expand its business network (Both Manufacturing and Selling) either in Pakistan or Bangladesh. Your Department has been tasked by CEO to conduct a Strategic analysis of Business/Industry for both the countries. Keeping this in mind
Q1: Conduct a Strategic Analysis using Michael Porters Five Forces and on the basis of said analysis recommend the Country that is more feasible for investment?
Michael Porter’s competitive forces model * Provides general view of firm, its competitors, and environment * Five competitive forces shape fate of firm a. Traditional competitors b. New market entrants c. Substitute products and services d. Customers e. Suppliers
We will discuss those points one by one for automobile industry with respect to Pakistan and Bangladesh.
Automotive Industry in Pakistan:
The Automobile industry has been an active and growing field in Pakistan for a long time, however not as much established to figure in the prominent list of the top automotive industries. Despite significant production volumes, transfer or technology remains low. Most cars in the country have dual fuel options and run on CNG (compressed natural gas) which is more affordable than petrol in the country.
The automobile industry in Pakistan can be broadly categorized into following segments:
* Cars and Light Commercial Vehicles (LCVs). * Two and Three Wheelers. * Tractors. * Trucks and Buses * Vendor Industry
Traditional Competitors:
There are only three major passenger car assemblers in the market; Pak Suzuki, Indus Motors and Honda Atlas. Pak Suzuki has a almost complete monopoly in the small car segment as it faces almost no competition