Automobil Analysis

935 views
885 views

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
935
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
52
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Automobil Analysis

  1. 1. Automobile Industry <ul><ul><li>Group 3 </li></ul></ul><ul><ul><li>Matt Davis </li></ul></ul><ul><ul><li>Charlie Kim </li></ul></ul><ul><ul><li>Adam King </li></ul></ul><ul><ul><li>Brian Larson </li></ul></ul><ul><ul><li>Sean Redmond </li></ul></ul><ul><ul><li>Andy Schick </li></ul></ul>
  2. 2. S.W.O.T. Analysis <ul><li>Ford </li></ul><ul><li>General Motors </li></ul><ul><li>Daimler/Chrysler </li></ul>
  3. 3. Major Strengths
  4. 4. Ford Motor Company <ul><li>Diversity </li></ul><ul><ul><ul><li>Jaguar </li></ul></ul></ul><ul><ul><ul><li>Volvo </li></ul></ul></ul><ul><ul><ul><li>Mercury </li></ul></ul></ul><ul><ul><ul><li>Lincoln </li></ul></ul></ul><ul><ul><ul><li>Mazda </li></ul></ul></ul><ul><ul><ul><li>Land Rover </li></ul></ul></ul><ul><ul><li>Second Largest Automaker in the World </li></ul></ul><ul><ul><li>Owns Hertz Rent-A-Car </li></ul></ul><ul><ul><li>Ford Motor Credit </li></ul></ul>
  5. 5. Ford Strengths <ul><li>Supportive </li></ul><ul><ul><ul><li>Gave Generously after the September 11 Attacks </li></ul></ul></ul><ul><ul><ul><li>Give Generously to Help Fight Breast Cancer </li></ul></ul></ul><ul><ul><ul><li>Support Racing Teams </li></ul></ul></ul><ul><ul><ul><ul><li>NASCAR </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Formula One </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Etc. </li></ul></ul></ul></ul><ul><li>4 th on the Fortune 500 List (U.S. only) </li></ul><ul><li>4 th on the Global 500 List </li></ul><ul><li>39 th on the Best Companies for Minorities List </li></ul>
  6. 6. General Motors Company <ul><li>World’s Largest Auto Manufacturer </li></ul><ul><ul><ul><li>In 2000, Sales Exceeded $183 Billion Globally </li></ul></ul></ul><ul><ul><ul><li>Gaining $5 Billion in Profits </li></ul></ul></ul><ul><li>Manufacturing Facilities in Over 30 Countries </li></ul><ul><li>Sell Vehicles in Over 200 Countries </li></ul><ul><li>As of 1999, GM Held 15.1% of the Automobile Market </li></ul>
  7. 7. GM Strengths <ul><li>Diversity </li></ul><ul><ul><ul><li>Chevrolet, Pontiac, Buick, Oldsmobile, GMC, Cadillac, Saturn, Hummer, Saab </li></ul></ul></ul><ul><li>Dominance </li></ul><ul><ul><ul><li>3 rd on Fortune 500 List </li></ul></ul></ul><ul><ul><ul><li>3 rd on Global 500 List </li></ul></ul></ul><ul><li>Alliances with Suzuki and Isuzu Motor Companies </li></ul><ul><li>Technological Alliances with Toyota and Honda Motor Companies </li></ul><ul><li>Setting the Standard </li></ul>
  8. 8. Daimler/Chrysler <ul><li>Leaders in the Mini-Van Lines of Automobiles </li></ul><ul><ul><ul><li>Became More Sleek Looking with Time </li></ul></ul></ul><ul><li>Leaders in the Convertible Lines </li></ul><ul><ul><ul><li>Sebring </li></ul></ul></ul>
  9. 9. Major Weaknesses
  10. 10. Ford Motor Company <ul><li>Firestone Tire Recalls </li></ul><ul><ul><ul><li>Caused Stock Price to Suffer--$14.70, Lowest in Years </li></ul></ul></ul><ul><li>CEO Jacques Nasser and Chairman Bill Ford Jr. Cannot Get Along </li></ul><ul><ul><ul><li>This past Week, Bill Ford Took Over as CEO </li></ul></ul></ul><ul><li>Cash Reserves Have Sunk to $4.1 Billion </li></ul><ul><ul><ul><li>$13 Billion on Acquisitions </li></ul></ul></ul><ul><ul><ul><li>$3.5 Billion to Cover Tire Recalls </li></ul></ul></ul>
  11. 11. General Motors <ul><li>Recalls Have Hindered Growth </li></ul><ul><ul><ul><li>314,000 Mini-Vans made between 1997-2000 </li></ul></ul></ul><ul><ul><ul><li>Repair Power Sliding Doors </li></ul></ul></ul><ul><li>Maybe Too Diverse? </li></ul><ul><ul><ul><li>Might Lose Focus on Some Lines </li></ul></ul></ul>
  12. 12. Daimler/Chrysler <ul><li>Lack of Diversification </li></ul><ul><li>Feel the Need to Refurbish Older Lines to Stay Competitive </li></ul><ul><li>Smaller Share of the Market than Ford or GM </li></ul>
  13. 13. Opportunities
  14. 14. Ford Motor Company <ul><li>More Environmentally Friendly </li></ul><ul><ul><ul><li>Cleaner Engine Emissions </li></ul></ul></ul><ul><ul><ul><li>Working With Environmental Groups to Help Clean the Environment </li></ul></ul></ul><ul><ul><ul><li>Solar Power </li></ul></ul></ul><ul><li>Generosity </li></ul><ul><ul><ul><li>Giving to More Charities </li></ul></ul></ul>
  15. 15. General Motors <ul><li>GMAC Financial Services </li></ul><ul><ul><ul><li>Mortgage, Auto, and Business Financing </li></ul></ul></ul><ul><li>Electronic Business and Digital Technology </li></ul><ul><ul><ul><li>Direct TV </li></ul></ul></ul><ul><ul><ul><li>OnStar System </li></ul></ul></ul><ul><li>Becoming More Environmentally Friendly </li></ul>
  16. 16. Daimler/Chrysler <ul><li>State-of-the-Art Technology Center in Auburn Hills, MI </li></ul><ul><ul><ul><li>Hard at Work to Keep Chrysler Competitive </li></ul></ul></ul><ul><li>Need to Expand More Into Foreign Markets </li></ul>
  17. 17. Threats!!!! <ul><li>The threat are really the same across the board for the automobile industry. Competition is huge, in this industry, and nothing hurts a company more than internal strife, as is the case with Ford Motor Company. Also an impending recession does not smile upon any industry in this day and age. </li></ul>
  18. 18. Toyota Strengths <ul><li>Partnerships </li></ul><ul><li>EPA Global 500 Award </li></ul><ul><li>#1 of Japanese Producers </li></ul><ul><li>SUVs </li></ul>
  19. 19. Toyota Weaknesses <ul><li>Poor Website </li></ul>
  20. 20. Toyota Opportunities <ul><li>Hybrid Engines </li></ul><ul><li>Matrix </li></ul>
  21. 21. Toyota Threats <ul><li>Consumer Confidence </li></ul>
  22. 22. Honda Strengths <ul><li>Used Cars </li></ul><ul><li>Honda Insight </li></ul><ul><li>Popularity </li></ul>
  23. 23. Honda Weaknesses <ul><li>Europe </li></ul><ul><li>Passport </li></ul>
  24. 24. Honda Opportunities <ul><li>Alliances </li></ul><ul><li>Fuel Efficiency </li></ul>
  25. 25. Honda Threats <ul><li>Second Movers </li></ul>
  26. 26. Nissan Strengths <ul><li>Teams </li></ul><ul><li>Revival Plan </li></ul>
  27. 27. Nissan Weaknesses <ul><li>Low Market Capitalization </li></ul><ul><li>Renault </li></ul>
  28. 28. Nissan Opportunities <ul><li>Revival Plan </li></ul>
  29. 29. Nissan Threats <ul><li>Low Market Share </li></ul><ul><li>Losing Company </li></ul>
  30. 30. Porter's Five Forces in the Automobile Industry Charlie Kim
  31. 31. Five Forces Within Auto Industry <ul><li>Threat of New Entrants </li></ul><ul><li>Bargaining Power of suppliers </li></ul><ul><li>Bargaining power of buyers </li></ul><ul><li>Threat of substitute products </li></ul><ul><li>Rivalry among competing firms </li></ul>
  32. 32. Threat of New Entrants <ul><li>Slow sluggish state of economy </li></ul><ul><ul><li>Personal consumption declined from 4.5 to 2.9% </li></ul></ul><ul><ul><li>Productivity decreased in manufacturing level </li></ul></ul><ul><li>Automotive sector has no space for new entrants </li></ul><ul><ul><li>Small demand base and wide choice </li></ul></ul><ul><li>High Fixed cost and constant R&D </li></ul>
  33. 33. Bargaining Power of Buyers and Suppliers <ul><li>Automakers design and assemble, suppliers have little responsibility </li></ul><ul><ul><li>Trust has been scarred by Ford-Firestone problem. </li></ul></ul><ul><ul><li>Essentially little power is given to suppliers </li></ul></ul><ul><li>Japanese emphasize trust in suppliers allowing for collaborative design efforts </li></ul><ul><ul><li>Corporate culture allows for such an arrangement to work </li></ul></ul>
  34. 34. Bargaining Power of Buyers <ul><li>Customers take over management of world’s car business. </li></ul><ul><ul><li>Over capacity - wider choice – zero switching cost </li></ul></ul><ul><ul><li>More discerning customers </li></ul></ul><ul><ul><li>Dealer Freedom </li></ul></ul><ul><ul><li>Better-quality products </li></ul></ul><ul><ul><ul><li>Consumers take advantage of current quality in product </li></ul></ul></ul>
  35. 35. Threat of substitute products <ul><li>Natural gas </li></ul><ul><li>Electricity </li></ul><ul><li>Ethanol </li></ul><ul><li>Vegetable oil </li></ul><ul><li>Sunlight </li></ul><ul><li>Water </li></ul>
  36. 36. Intensity of Rivalry among Competitors <ul><li>Gas crisis during 1980’s and 90’s </li></ul><ul><ul><li>Foreign Trade increased intensity of rivalry </li></ul></ul><ul><li>Export becomes essential to expanding and competing </li></ul>
  37. 37. Financial Comparision 17.73% 3.68 29.79 S&P500 0.93% 0.27 37.31 Industry 9.69% 0.88 17.07 91.2b 49.32 TM 43.51% 0.4 7.31 17.9b 9.01 NSANY 12.05% 0.64 15.45 35.99b 73.87 HMC 2.61% 0.14 28.88 23.01b 41.84 GM -4.47% 0.28 NM 35.5b 35.4 DCX 4.08% 0.19 49.73 29.4b 16.21 F ROE P/Sales P/E Mkt Cap Price
  38. 38. Financial Comparison <ul><li>Highlights </li></ul><ul><ul><li>Strengths </li></ul></ul><ul><ul><li>Weaknesses </li></ul></ul>
  39. 39. General Environment <ul><li>Demographic Segment </li></ul><ul><ul><li>Population </li></ul></ul><ul><ul><li>Age </li></ul></ul><ul><ul><li>Internet </li></ul></ul><ul><ul><li>Income Distribution </li></ul></ul>
  40. 40. <ul><li>Sociocultural Segment </li></ul><ul><ul><li>Jobs </li></ul></ul><ul><ul><li>Women in the Workforce </li></ul></ul><ul><ul><li>Consumers </li></ul></ul>
  41. 41. <ul><li>Technological Segment </li></ul><ul><ul><li>Environment </li></ul></ul><ul><ul><li>Aluminum </li></ul></ul>
  42. 42. <ul><li>Global Segment </li></ul>
  43. 43. Economic Segment <ul><li>Very International, with the main places being United States, Europe, and Japan </li></ul><ul><li>Historically auto stocks move with direction of North American sales cycle </li></ul><ul><li>Until September U.S. retail car and light truck sales declined in nine of last ten months. </li></ul>
  44. 44. U.S. Economy <ul><li>Struggling in recent months </li></ul><ul><li>Going to have to spend its way out of sharp downturn </li></ul><ul><li>Congress considering temporary tax rebates and accelerate planned permanent cuts </li></ul>
  45. 45. Japan <ul><li>Verging on deep recession </li></ul><ul><li>Predict tax revenue shortfall of $1.1 trillion yen this year. </li></ul><ul><li>Livestock industry seeking $104 b yen in aid for losses from Mad Cow in September </li></ul>
  46. 46. Germany <ul><li>Economic growth increase moderately </li></ul><ul><li>Inflation will fall </li></ul><ul><li>Overspending on health and sharp economic slowdown raise deficit </li></ul>
  47. 47. Political/Legal Segment <ul><li>Global Agreement on Vehicle Regulations </li></ul><ul><li>Trade barriers </li></ul>
  48. 48. General Motors <ul><li>Claim to be the pacesetter for the automotive industry </li></ul><ul><li>Has the largest share of the world’s vehicle market at 15.1% </li></ul><ul><li>Offer a variety of services including GMAC </li></ul><ul><li>Strive for technological innovations such as the Onstar system </li></ul>
  49. 49. Ford <ul><li>Passion for better ideas </li></ul><ul><li>Pushing the limits of technology and design </li></ul><ul><li>Striving to make the world a better place </li></ul><ul><li>Concerned with environment and developing more efficient automobiles </li></ul><ul><li>Built Ford tough </li></ul>
  50. 50. Daimler Chrysler <ul><li>Striving to become the number one automobile manufacturer in the world </li></ul><ul><li>Formed various partnerships to enhance access to various global markets </li></ul><ul><li>Premium priced product </li></ul><ul><li>Leader in innovative designs and styles </li></ul>
  51. 51. Honda <ul><li>Manufacturers of a wide range of products </li></ul><ul><li>Industry leader in fuel-efficiency and low emission technology </li></ul><ul><li>Maintains values of a small company despite competing in a global market </li></ul>
  52. 52. Nissan <ul><li>Slogan of “thinking ahead” </li></ul><ul><li>Offer a sport edition for every model of car they produce </li></ul><ul><li>Development of ecologically minded transportation </li></ul><ul><li>Believe that design is the most vital contact they have with their customers </li></ul>
  53. 53. Toyota <ul><li>Slogan is “get the feeling” </li></ul><ul><li>Devoted to the customer and excel in customer service </li></ul><ul><li>Local outreach programs </li></ul><ul><li>High standards for dependability </li></ul>

×