5 forces Threat of Competitors- High . BMW have got a lot of competitors . The biggest rivalry is a Mercedes. Both company aiming on the same customer group and have got nearly same quality of cars. Also there is threat form Audi ‚ Lexus ‚ Volkswagen and Reno .But BMW still holding one of the leading place in car industry ‚ because of their established brand ‚ good service and huge amount of innovations. Power of buyer –High. Buyers have got a lot of power over the production of the BMW
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Lecture Illustration: Compensation Salt Water Ltd. Salt Water Ltd is a large and successful manufacturer of engines. The company consists of two divisions: the Automotive Engine division and the Outboard Motor Division. Salt Water has recently acquired a new company which will become a third division. The new Couch division is a small manufacturer of lawnmower motors. It has been owned and managed by the one person for 40 years. The prior owner treated all employees as part of his family
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Culture Shock Warren Oats was a highly successful executive for American Auto Suppliers‚ a Chicago-based company that makes original-equipment specialty parts for Ford‚ GM‚ and Chrysler. Rather than retreat before the onslaught of Japanese automakers‚ AAS decided to counterattack and use its reputation for quality and dependability to win over customers in Japan. Oats had started in the company as an engineer and worked his way up to become one of a handful of senior managers who had a shot at
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POSSIBILITIES & LIMITATIONS OF HONDA’S PASSENGER CAR BUSINESS Honda is an excellent company in terms of its remarkable ability in entering the automobile market and becoming one major player in the industry. Honda started its business in motorcycle business before entered the automobile industry in 1962. Japan automobile industry at that time has a high entry barrier especially in the form of competition and economies of scale. Honda was a new comer and there were two strong players in the Market;
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Threat of New entrants The threat of new entrants is very high for the small car industry. The growing economy and the increasing buying power of the customers has made every automobile player to grab the opportunity in small car segment. The norms for Foreign Investment and import of technology have been progressively liberalized over the years for manufacture of vehicles including passenger cars in order to make this sector globally competitive The industry had an investment of about Rs. 50
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Case Study - Hyundai: Leading the way in the global car industry The global car industry is one of the largest and most internationalised business sectors. There are 17 major global car companies‚ each of which produces over 1 million cars a year. The Hyundai Motor Company (Hyundai) is South Korea ’s number one car maker and the 10th largest in the world. It sells vehicles in over 190 countries producing about a dozen car and minivan models‚ plus trucks‚ buses and other commercial vehicles. Popular
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Political / Legal Factors Political environment consists of various factors related to public affairs and their effect on the business organization. Indian government auto policy focused at promoting an integrated‚ phased and particular conducive growth of the Indian automotive industry. It allowed automatic approval for foreign equity investment up to 100 per cent and there is no minimum. Political climate in a various countries producing and buying automobiles depends on policies on import‚ export
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* Introduction of Automobile The automobile industry in India actually began about 4‚000 years ago when the first wheel was used for transportation. In the early 15th century‚ the Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies‚ including the creation of a wheel that turned under its own power. By the 1600s‚ small steam-powered engine models were developed‚ but it was another century before a full-sized engine-powered automobile was
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litre of petrol. Makers of small cars‚ especially those that run as taxis‚ fear the RE60 because it will come with a cheaper price tag‚ somewhere between the three-wheeler’s Rs1.25 lakh and Maruti Suzuki Alto’s Rs2.5 lakh. It will also be more fuel efficient‚ giving 35 kilometres to a litre. Maruti Suzuki and Tata Motors‚ though‚ are against allowing such a vehicle‚ and want the safety and emission standards for the quadricycle to be on par with that of cars. But the low-speed four-wheeler passenger
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Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983‚ by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. There was an option in the agreement to raise Suzuki’s equity to 40%‚ which it exercised in 1987. Five years later‚ in 1992‚ Suzuki further increased its equity to 50%
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