mobilanalysis

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Presentation Transcript

Automobile Industry: 

Automobile Industry Group 3 Matt Davis Charlie Kim Adam King Brian Larson Sean Redmond Andy Schick

S.W.O.T. Analysis: 

S.W.O.T. Analysis Ford General Motors Daimler/Chrysler

Major Strengths: 

Major Strengths

Ford Motor Company: 

Ford Motor Company Diversity Jaguar Volvo Mercury Lincoln Mazda Land Rover Second Largest Automaker in the World Owns Hertz Rent-A-Car Ford Motor Credit

Ford Strengths: 

Ford Strengths Supportive Gave Generously after the September 11 Attacks Give Generously to Help Fight Breast Cancer Support Racing Teams NASCAR Formula One Etc. 4th on the Fortune 500 List (U.S. only) 4th on the Global 500 List 39th on the Best Companies for Minorities List

General Motors Company: 

General Motors Company World’s Largest Auto Manufacturer In 2000, Sales Exceeded $183 Billion Globally Gaining $5 Billion in Profits Manufacturing Facilities in Over 30 Countries Sell Vehicles in Over 200 Countries As of 1999, GM Held 15.1% of the Automobile Market

GM Strengths: 

GM Strengths Diversity Chevrolet, Pontiac, Buick, Oldsmobile, GMC, Cadillac, Saturn, Hummer, Saab Dominance 3rd on Fortune 500 List 3rd on Global 500 List Alliances with Suzuki and Isuzu Motor Companies Technological Alliances with Toyota and Honda Motor Companies Setting the Standard

Daimler/Chrysler: 

Daimler/Chrysler Leaders in the Mini-Van Lines of Automobiles Became More Sleek Looking with Time Leaders in the Convertible Lines Sebring

Major Weaknesses: 

Major Weaknesses

Ford Motor Company: 

Ford Motor Company Firestone Tire Recalls Caused Stock Price to Suffer--$14.70, Lowest in Years CEO Jacques Nasser and Chairman Bill Ford Jr. Cannot Get Along This past Week, Bill Ford Took Over as CEO Cash Reserves Have Sunk to $4.1 Billion $13 Billion on Acquisitions $3.5 Billion to Cover Tire Recalls

General Motors: 

General Motors Recalls Have Hindered Growth 314,000 Mini-Vans made between 1997-2000 Repair Power Sliding Doors Maybe Too Diverse? Might Lose Focus on Some Lines

Daimler/Chrysler: 

Daimler/Chrysler Lack of Diversification Feel the Need to Refurbish Older Lines to Stay Competitive Smaller Share of the Market than Ford or GM

Opportunities: 

Opportunities

Ford Motor Company: 

Ford Motor Company More Environmentally Friendly Cleaner Engine Emissions Working With Environmental Groups to Help Clean the Environment Solar Power Generosity Giving to More Charities

General Motors: 

General Motors GMAC Financial Services Mortgage, Auto, and Business Financing Electronic Business and Digital Technology Direct TV OnStar System Becoming More Environmentally Friendly

Daimler/Chrysler: 

Daimler/Chrysler State-of-the-Art Technology Center in Auburn Hills, MI Hard at Work to Keep Chrysler Competitive Need to Expand More Into Foreign Markets

Threats!!!!: 

Threats!!!! The threat are really the same across the board for the automobile industry. Competition is huge, in this industry, and nothing hurts a company more than internal strife, as is the case with Ford Motor Company. Also an impending recession does not smile upon any industry in this day and age.

Toyota Strengths: 

Toyota Strengths Partnerships EPA Global 500 Award #1 of Japanese Producers SUVs

Toyota Weaknesses: 

Toyota Weaknesses Poor Website

Toyota Opportunities: 

Toyota Opportunities Hybrid Engines Matrix

Toyota Threats: 

Toyota Threats Consumer Confidence

Honda Strengths: 

Honda Strengths Used Cars Honda Insight Popularity

Honda Weaknesses: 

Honda Weaknesses Europe Passport

Honda Opportunities: 

Honda Opportunities Alliances Fuel Efficiency

Honda Threats: 

Honda Threats Second Movers

Nissan Strengths: 

Nissan Strengths Teams Revival Plan

Nissan Weaknesses: 

Nissan Weaknesses Low Market Capitalization Renault

Nissan Opportunities: 

Nissan Opportunities Revival Plan

Nissan Threats: 

Nissan Threats Low Market Share Losing Company

Porter's Five Forces in the Automobile Industry: 

Porter's Five Forces in the Automobile Industry Charlie Kim

Five Forces Within Auto Industry: 

Five Forces Within Auto Industry Threat of New Entrants Bargaining Power of suppliers Bargaining power of buyers Threat of substitute products Rivalry among competing firms

Threat of New Entrants : 

Threat of New Entrants Slow sluggish state of economy Personal consumption declined from 4.5 to 2.9% Productivity decreased in manufacturing level Automotive sector has no space for new entrants Small demand base and wide choice High Fixed cost and constant R&D

Bargaining Power of Buyers and Suppliers : 

Bargaining Power of Buyers and Suppliers Automakers design and assemble, suppliers have little responsibility Trust has been scarred by Ford-Firestone problem. Essentially little power is given to suppliers Japanese emphasize trust in suppliers allowing for collaborative design efforts Corporate culture allows for such an arrangement to work

Bargaining Power of Buyers : 

Bargaining Power of Buyers Customers take over management of world’s car business. Over capacity - wider choice – zero switching cost More discerning customers Dealer Freedom Better-quality products Consumers take advantage of current quality in product

Threat of substitute products: 

Threat of substitute products Natural gas Electricity Ethanol Vegetable oil Sunlight Water

Intensity of Rivalry among Competitors: 

Intensity of Rivalry among Competitors Gas crisis during 1980’s and 90’s Foreign Trade increased intensity of rivalry Export becomes essential to expanding and competing

Financial Comparision: 

Financial Comparision

Financial Comparison: 

Financial Comparison Highlights Strengths Weaknesses

General Environment: 

General Environment Demographic Segment Population Age Internet Income Distribution

Slide40: 

Sociocultural Segment Jobs Women in the Workforce Consumers

Slide41: 

Technological Segment Environment Aluminum

Slide42: 

Global Segment

Economic Segment: 

Economic Segment Very International, with the main places being United States, Europe, and Japan Historically auto stocks move with direction of North American sales cycle Until September U.S. retail car and light truck sales declined in nine of last ten months.

U.S. Economy: 

U.S. Economy Struggling in recent months Going to have to spend its way out of sharp downturn Congress considering temporary tax rebates and accelerate planned permanent cuts

Japan: 

Japan Verging on deep recession Predict tax revenue shortfall of $1.1 trillion yen this year. Livestock industry seeking $104 b yen in aid for losses from Mad Cow in September

Germany: 

Germany Economic growth increase moderately Inflation will fall Overspending on health and sharp economic slowdown raise deficit

Political/Legal Segment: 

Political/Legal Segment Global Agreement on Vehicle Regulations Trade barriers

General Motors: 

General Motors Claim to be the pacesetter for the automotive industry Has the largest share of the world’s vehicle market at 15.1% Offer a variety of services including GMAC Strive for technological innovations such as the Onstar system

Ford: 

Ford Passion for better ideas Pushing the limits of technology and design Striving to make the world a better place Concerned with environment and developing more efficient automobiles Built Ford tough

Daimler Chrysler: 

Daimler Chrysler Striving to become the number one automobile manufacturer in the world Formed various partnerships to enhance access to various global markets Premium priced product Leader in innovative designs and styles

Honda: 

Honda Manufacturers of a wide range of products Industry leader in fuel-efficiency and low emission technology Maintains values of a small company despite competing in a global market

Nissan: 

Nissan Slogan of “thinking ahead” Offer a sport edition for every model of car they produce Development of ecologically minded transportation Believe that design is the most vital contact they have with their customers

Toyota: 

Toyota Slogan is “get the feeling” Devoted to the customer and excel in customer service Local outreach programs High standards for dependability