Application of Porter’s Five Force Strategy to the U.S. Auto Industry
Porter’s five-force strategy is a framework for qualitatively evaluating a firm’s strategic position at the industry level, a marketplace in which closely related substitutable products or services are sold. Porter’s analytical framework consists of those forces that affect a producer’s ability to serve its customers and profitability. A change in any of these five forces requires a re-assessment of the firm position in the industry.
According to this model, business success is primarily based on managers’ knowledge of the power of customers, the power of suppliers, competition in the industry, potential entrants, and substitute products. The extended rivalry from all five forces defines an industry’s structure and shapes the nature of competitive interaction within an industry.
2. Abstract
3. The U.S. Auto Industry
3.1. U.S. Auto Industry Definition
3.2. U.S. Auto Industry Profile
3.3. U.S. Auto Industry Market Structure
3.4. U.S. Industry Future Outlook
4. Application and Analysis of Porter’s Five Forces Strategy to the U.S. auto industry
4.1. Bargaining Power of Buyers in the U.S. auto industry.
4.2. Bargaining Power of Suppliers in the U.S. auto industry.
4.3. Competitive Rivalry in the Industry in the U.S. auto industry.
4.4. Threat of New Entrants to the U.S. auto industry.
4.5. Threat of Substitutes in the U.S. auto industry.
5. Conclusion
6. References
- Burke, A., van Stel, A., & Thurik, R. (2010). Blue ocean vs. five forces. Harvard Business Review, 88(5), 28-29.
- Dobbs, M. (2014). Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), 32-45.
- Cole, Fulton, and Akridge. Industry Analysis: The Five Forces
https://www.extension.purdue.edu/extmedia/ec/ec-722.pdf
- Ireland, R. D., Hoskisson, R. and Hitt, M. (2008). Understanding business strategy: Concepts and cases. Cengage Learning.
- Porter, M.E. (March–April 1979) How Competitive Forces Shape Strategy, Harvard Business Review.
- Porter, M.E. (January 2008) The Five Competitive Forces That Shape Strategy, Harvard Business Review.
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