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Analysis Of Porter 's Five Forces Essay

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Economies and markets are susceptible to shifts in employment, interest rates, customer preferences and competition within one’s respective industry. The auto industry is no exception and carries with it many specific considerations, management should constantly evaluate and implement. Porter’s Five Force’s of strategic planning hold many beneficial elements worthy of reflection by management to ensure their companies are able to achieve and hold onto their respective market position. While the automobile is a modern invention we all take for granted, shifts in customer preference and technological advances keep the industry in constant flux forcing management to evolve their efforts in achieving profit maximization. Care must be taken in strategy development since any decision will be a costly one and the question of its success or failure lies in management’s understanding of market influences represented by Porter’s Five Forces.

Strategy Development for the Auto Industry Using Porter’s Five Forces The Automobile Industry, aside from the World Wide Web has spurred more economic growth in the past century than any other invention in our history. From coal fueled steam driven power plants to internal combustion engines, modern transportation methods have closed the distance gap globally, allowing for rapid movement of goods throughout all economies. While the aviation industry has increased the overall scale and speed of transportation, the automotive industry

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