The Automotive Industry

Paper Summary:

The paper explains that the new model of automobile manufacturing is about managing relationships and creating a web of interconnected supply chains that runs efficiently to produce the best vehicles. The paper discusses how the competition within the automotive industry has intensified in the past few years because more brands and major corporations are rising from previously undeveloped nations. The paper presents a PESTLE (political, economic, sociocultural, technological, legal and ethical) analysis of the competitive landscape. The paper analyzes the General Motors and Toyota companies and offers projections for the future.

Outline:
Introduction
Macro
Marketplace
Specific Companies Analysis: General Motors and Toyota
Projections and Future Emphasis
Conclusion

From the Paper:

"The strategic management of the car industry has evolved as well, because the primary focused has shifted from managing internal revenue production and consolidation of business operations and centered on the forces of globalization. The majority of companies within the industry have attempted to downsize its existing production capability to create more agile businesses that can operate on an independent level while staying true to a unique centralized corporate strategy. Another important aspect of current strategic management decisions making is how to create dramatic product differentiation."

Sample of Sources Used:

• Hoffman, K. and R. Kaplinsky, Driving Force (Boulder, CO, Westview Press,1988).
• Humphrey, J. and A. Oeter, "Auto industry policies in emerging markets:globalization and the promotion of local industries", in J. Humphrey, Y.Lecler and M. Salerno (eds) Global Strategies, Local Realities: The AutoIndustry in Emerging Markets (Basingstoke, Macmillan, 2000), pp. 42-71.
• Industry Commission, "The automotive industry", draft report (Canberra,Industry Commission, 1996).
• Automotive Component Manufacturers Association of India (ACMA),Automotive Industry of India: Facts and Figures, 1998-99 (New Delhi,Automotive Component Manufacturers Association of India, 1999).
• Automotive Emerging Markets, Automotive Emerging Markets (London,Automotive World Publications, 20 April 1999).

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