1. WeaknessBentley
Diseconomies to scale
o Bentley is one of the most expensive car which is it on the category luxury
sport sedan. Not all the people able to buy Bentley car due to the higher price.
They produce a lot of car that involve more cost and expenses but the demand
for Bentley less than the output. These totally affect the economics of scale in
the car industry.
Not diversified
o Bentley car not diversify because it just for one group buyer only. Their target
for high income people only. They do not pay attention on the lower income so
only producing car with higher price with higher accessories. Example,
steering for Bentley it cost $150,000. So there is too much barriers to lower
income to buy Bentley model.
o Besides that, Bentley companies also not diversify country to distribute the car.
They only choose 58 countries to sell Bentley cars.
Poor supply chain
o For luxury car like Bentley there is too difficult to produce that car without
getting the high quality supply due to the high price for the car. Now there is
one issue where the boss for Bentley Motors has warned that Britain’s basic
supply chain to the automotive industry is “not good enough”. These issues
arise on Friday 22 August 2014
ineffective corporate culture
Dependence on supply
o Supply chain the most important thing to produced goods and services. So that
is happen on Bentley Cars which is they too dependence on supply because
there is only certain company that able to supply them the material for that car.
o Besides that, because of Bentley Car is the expensive car so they need to used
high quality material to make sure that they able to achieved their expected
performance.
Limited production
o Bentley only produces 2000-10000 cars every year. This because there is low
demand for this car.
Inefficient tax system
o Tax for Bentley very expensive compared than other car, especially in
Malaysia. Example, Bentley Flying Spur price RM1.8 million with the road tax
RM18, 000 annually.
2. THREAT
Competition
-Bentley motors is a best choices to challenges Rolls Royce (2014) about speed and
performance motor in adventure and etc. Nowadays people must preference for
environmentally friendly vehicles like Hybrid and Bentley. Example, Bentley as a
motorcar is famous for their large displacement engines. This performance can attract
people to using this technology because environmentally friendly.
-Other than that, Bentley also has own design and high privacy by Bentley motors.
Economic slowdown when in inflation
-Economic slowdown to our country because our country more import motorcars from
another country and not produce our own cars. We need to pay higher tax to
government because the tax of import. The more our import motorcars from another
country it’ll make our money to outflow to another country. And make a change in
value of money. This will make Bentley become limited edition.
External changes (government, taxes, etc.)
-Because Bentley is import motorcars. The governments will charger the highest tax
and insurance to owner cars. So customer must pay the highest tax. Cost of rebuild
back the cars. And obey the requirement of Malaysian rule in Department of
Transportation in Malaysia.
Lower cost competitors or imports
-Bentley motorcars have higher competitors with the local cars. Because the pricing of
cars. When import cars come to another country to other country it’ll become
expensive because the cost transportation of good and service. If compare with local
motorcars, local cars more cheaper than import so this give advantage to Bentley
production because has minimum customer just buying this products.
Product substitution(about cost and functions)
- In production substitution Bentley, most a challenges in debating over the car when
their sales the Bentley cars. Because Bentley has a limited edition in the world and not
all of customer can get this cars. This will make the price of cost Bentley will become
quite expensive for luxuries people in challenges in debating over the cars and they
have more disposable income towards their expenses.
BENTLY COMPETITION
1. Mercedes Benz
2. BMW
3. Rolls Royce(2014) about speed and performance