Pestel and porter five force analysis

Rising Demand in Automotive Industry The automotive industry is one of the flourishing end-user industries to increase the demand for adhesives in Thailand. A car-manufacturing unit uses about 40 kg of adhesives per vehicle, which opens a huge market for adhesives. The demand for automotive in Thailand has increased in the recent past and is expected to rise at a significant rate.

Pestel and porter five force analysis

Thus scenario analysis is done to evaluate the likely views to predict the organizations future business environment Heijiden, In order to reach this conclusion PESTEL analysis is done to identity the key drivers of change that can be used to predict the scenarios for the future.

PESTEL stands for political, economical, social, technological, environmental and legal and forms of analysis of the macro-environment of the organization Thomas, The probable factors that affect the automobile industry are: Laws and regulations had affected the automobile industry since its outburst.

These laws generally revolved around the environmental norms that were to be fulfilled by any car industry.

Pestel and porter five force analysis

Thus the car manufacturers had to take care of the environmental issues during manufacturing of cars. Taxes and government foreign policies are critical for the automobile industry. The foreign policies help to us decide the probability of success in the global market.

Introduction of new schemes in the US and Europe automobile industry wherein regulations led to produce high mileage cars along with increase in automobile sales and production Hill, Economical factors Economical factors related to the exchange rates, economic growth globally and the business setting prevailing in the industry.

Economic factors for the industry are: Thus there was lot of revenue withheld even though demand was less than supply. Social factors Social factors include the changes in cultures and demo graphics globally apart from change in buying pattern and capacity of the consumer.

Social factors having an impact on the auto industry are: Changes in the customer predilection from car being a status symbol to fuel efficiency and low emission cars.

Pestel and porter five force analysis

Changes in buying pattern of the consumers due to recession in mature markets. Environmental issues and awareness of the harmful emissions through automobiles Increase in use of technology to gain a clear competitive ad vantage Use of new and sophisticated design to overcome the decreased margins in the industry.

Stern application of the EURO norms set up to curb pollution in developing countries. The threat of new entrants in case of automobile industry is less as large capital cost is required to set up a manufacturing plant and assembly liner.

Also it takes time for new entrants to get a place and the reputation in the minds of the consumers. BMW has a brand image of being powerful and luxurious. Thus the threat of substitutes for BMW is high. Bargaining power of buyers: BMW and its competitors are positioned as in exclusive product range.

Here the bargaining power of buyers is high because the consumers can decide the product according to the price range and buy the products accordingly.

Also with environmental issues hovering over the industry the buyers have the last say with sample substitutes available. Bargaining power of suppliers: BMW has good supply chain management system and had long relationship with suppliers.Search the world's information, including webpages, images, videos and more.

Google has many special features to help you find exactly what you're looking for. Published: Thu, 13 Jul A unique feature of Walt-retailing is that it is virtually recession proof because in times of economic recession, consumers flock discount retailers. Wal-Mart is the world’s largest retail industry (Fortune, ) and it is the largest private employer in the United States of America (Yoffie ).

Published: Mon, 5 Dec RYANAIR is an Irish based low cost airline which specialises in short-haul flights and has its headquarters at Dublin Airport, Ireland, and with primary operational bases at Dublin Airport and London Stansted Airport and 34 other secondary bases. Both Five Forces Model of Porter and PESTEL (Political, Economical, Social, Technological, Environmental and Legal) analysis are two very important analytical tools for businesses and aid companies in improving their industrial competitive position.

Porter Five Forces Model analyses where the influence or the power lies in a competitive . A s steel sign for Pepsi-Cola in Huntsville, Alabama. A Porter’s Five Forces analysis of PepsiCo shows that the business is under the major influences of competitors, consumers, and substitutes.

Porter five forces analysis From Wikipedia, the free encyclopedia A graphical representation of Porter's Five Forces Porter five forces analysis is a framework for industry analysis and business strategy development.

Porter's Five Forces Analysis