• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

What main trends are identifiable in the business environment in general and in the automobile industry in particular in 2000?

Extracts from this document...

Introduction

Question 1. What main trends are identifiable in the business environment in general and in the automobile industry in particular in 2000?

1.  Consolidation

The trends in the automobile industry present through the 1990s intensified as the industry moved into the twenty-first century. Global convergence stood out as a major issue. And the consolidation was continuing from 1990 to 2000.

  1. Mergers and acquisition

There was a great deal of consensus amongst commentators that in a few years the industry would consist of no more than six giants, with a peppering of niche players. Mergers and acquisition activity moving from automobile manufacturers, already highly concentrated to parts suppliers.

  1. Technology

The Internet and e-commerce---- shortening the lead-time

The Internet and e-commerce play a vital role by shortening the lead-time for the production of an automobile. If given the importance of the purchase, customers could be brought into a Web-driven relationship with automobile suppliers and manufacturers, a shortening of the lead-time was a distinct possibility.

...read more.

Middle

I will apply Porter’s five forces framework to the segmentation of luxury cars in automobile industry in this question. The five forces framework helps identify the sources of competition in an industry or sector. The five forces are the threat of entry, the threat of substitutes, the power of buyers, the power of suppliers and competitive advantage.

The threat of entry:

The threat of entry is high in luxury cars segmentation. They need high technology to produce the luxury cars. And the capital requirement of entry is quite high as well.

The threat of substitutes:

The threat of substitute is high.

The power of buyers:

The power of buyers in luxury cars segmentation is tending to be low. There are few alternative resources of supply. Because comparing with other kinds of cars there are only few manufacturers produce luxury cars. And we know that not everybody can afford

...read more.

Conclusion

I will choose the luxury cars markets as my segmentation in which BMW compete in this question.

      The critical success factors in the luxury cars segmentation:

  1. Highly qualified labour force. In the twenty-first century, the scarce resources that most influence national competitiveness are likely to be the skills displayed by the workforce. One of Germany’s distinctive national resources was a highly qualified labour force that could be used by German manufacturers as a source of competitive advantage. Most of such advantage went to companies such as BMW, managed to build a perception of valuable differences in the minds of their buyers.
  2. The BMW brand. BMW had traditionally taken great pride in the quality of its engineering. And BMW employed a highly skilled German labour force, so they get the benefits of a reputation for high-quality products.

Question 4. What are the bases of BMW’s strategy? What core competence did it posses?

Question 5. Briefly compare and contrast Porter’s view on competitive positioning with Barney’s resource based view.

...read more.

This student written piece of work is one of many that can be found in our GCSE Height and Weight of Pupils and other Mayfield High School investigations section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Height and Weight of Pupils and other Mayfield High School investigations essays

  1. Obtain information to make a report on family size and the structure of families ...

    The tables below show the comparison between the expected frequencies and the observed frequencies. Family Of One Number Of Boys 0 1 Observed Frequency 25 24 Expected Frequency 25 24 Family Of Two Number Of Boys 0 1 2 Observed Frequency 32 74 35 Expected Frequency 33.77 70.468 36.77 Family

  2. What are the main clinical techniques available for the manipulation of human reproduction? Briefly ...

    human reproductive system worked that significant advances were made into the treatment of infertility. Treatments In the last 50 years it has become increasingly more possible to treat at least some forms of infertility. Hormonal imbalances concerned with female ovulation can be corrected with "fertility drugs".

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work