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Analysis of the Automobile Industry in Times of Transition Using Porter’s Five Forces Model

Hausarbeit 2015 11 Seiten

BWL - Unternehmensforschung, Operations Research



1. Introduction ... 1

2. Theoretical Framework ... 2

3. Analysis ... 4

4. Summary ... 7

List of References ... 8

1. Introduction

In the fast moving 21st century, only the call for quick success prevails. There is neces- sity of flexible reactions to changes of the economic environment, which puts business organizations under pressure to perform. Due to technological progress, globalization and digitalization, information about changes or trends in an economic environment is easy accessible for everybody and can be distributed among others in a minimum of time. Consequently business organizations have to react to these new circumstances by evolving, changing and reorganizing or otherwise they will disappear.

“We live in a period of profound transition – and the changes are more radical perhaps than even those that ushered in the “Second Industrial Revolution” of the middle 19th century, or the structural changes triggered by the Great Depression and the Second World War.” [1]

This statement indicates that the business world as we know it is undergoing another major change which will affect the global economy. But what are these changes exactly and how will business organizations react to these changes? What future challenges must business organizations overcome to stay profitable on the long run?

In order to answer the above questions, this paper will place Drucker’s statement into relevance regarding internal and external environment of an organization within the automobile industry. In the following section Porter’s Five Forces Model will be described and later on used to analyze the internal and external environment of a automobile industry.

1. Theoretical Framework

The “Porter’s Five Forces Model” was developed by Michael E. Porter as a simple framework for assessing and evaluating the competitive strength and position of a business organization. [2] The model includes an analysis of five driving forces, which deter- mine the competitiveness and attractiveness within a specific market. [3]


[1] c.f. Drucker 2001 p.ix-x

[2] c.f. Porter 2008 p.2

[2] c.f. Porter 2008 p.2

[3] c.f. Mockler 2002 p.100f.


ISBN (eBook)
ISBN (Buch)
720 KB
Institution / Hochschule
Rheinisch-Westfälische Technische Hochschule Aachen
analysis automobile industry times transition using porter’s five forces model




Titel: Analysis of the Automobile Industry in Times of Transition Using Porter’s Five Forces Model