As we move forward the automobile industry will see more changes in the next 10 years than it has in the last 100. Now we will take a look at the automotive industry through Michael Porters Five Forces Analysis model. There five different areas that influence an industry: (1) threat of substitutes; (2) barriers to entry, (3) supplier power, (4) buyer power; and (5) degree of rivalry...
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As we look at each of these areas we will learn what influences and drive the automotive industry in today's society. Threat of Substitute Products There are not many substitute products for automobiles. The most common substitutes are planes, trains, buses, walking, or riding bike. All of these different forms of transportation depend on the geographic location, availability and what the cost is resulting back to the consumer...
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