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Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
Automobil Analysis
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Automobil Analysis

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  • 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. S.W.O.T. Analysis <ul><li>Ford </li></ul><ul><li>General Motors </li></ul><ul><li>Daimler/Chrysler </li></ul>
  • 3. Major Strengths
  • 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. 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. 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. 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. 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. Major Weaknesses
  • 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. 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. 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. Opportunities
  • 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. 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. 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. 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. 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. Toyota Weaknesses <ul><li>Poor Website </li></ul>
  • 20. Toyota Opportunities <ul><li>Hybrid Engines </li></ul><ul><li>Matrix </li></ul>
  • 21. Toyota Threats <ul><li>Consumer Confidence </li></ul>
  • 22. Honda Strengths <ul><li>Used Cars </li></ul><ul><li>Honda Insight </li></ul><ul><li>Popularity </li></ul>
  • 23. Honda Weaknesses <ul><li>Europe </li></ul><ul><li>Passport </li></ul>
  • 24. Honda Opportunities <ul><li>Alliances </li></ul><ul><li>Fuel Efficiency </li></ul>
  • 25. Honda Threats <ul><li>Second Movers </li></ul>
  • 26. Nissan Strengths <ul><li>Teams </li></ul><ul><li>Revival Plan </li></ul>
  • 27. Nissan Weaknesses <ul><li>Low Market Capitalization </li></ul><ul><li>Renault </li></ul>
  • 28. Nissan Opportunities <ul><li>Revival Plan </li></ul>
  • 29. Nissan Threats <ul><li>Low Market Share </li></ul><ul><li>Losing Company </li></ul>
  • 30. Porter's Five Forces in the Automobile Industry Charlie Kim
  • 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. 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. 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. 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. 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. 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. 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. Financial Comparison <ul><li>Highlights </li></ul><ul><ul><li>Strengths </li></ul></ul><ul><ul><li>Weaknesses </li></ul></ul>
  • 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. <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. <ul><li>Technological Segment </li></ul><ul><ul><li>Environment </li></ul></ul><ul><ul><li>Aluminum </li></ul></ul>
  • 42. <ul><li>Global Segment </li></ul>
  • 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. 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. 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. 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. Political/Legal Segment <ul><li>Global Agreement on Vehicle Regulations </li></ul><ul><li>Trade barriers </li></ul>
  • 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. 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. 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. 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. 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. 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>

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