The automotive industry faces relatively low barriers to entry but moderate threats from substitutes. Supplier power is increasing from traditionally low levels as suppliers grow larger. Buyer power is moderate to high as customers have many options and low switching costs. Competition among existing players is intense, despite market concentration, as emerging markets grow and customers demand more options. OEMs are addressing regulatory requirements by shifting product mixes, using more modular platforms, and increasing electronic content in vehicles. Retail activities are also changing as customers do more research and want more involvement in purchasing decisions.

4. Source: Noealt Corporate Services

6. Source: www.edmunds.com

7. Source: www.statista.com

8. Threat of new entrants:
Relatively low
- High barriers to entry (capital for production and
distribution)
- Existing players exploit economies of scale and scope
Threat of Substitutes:
Moderate
- Many indirect substitutes but non of them provides the same
level of confort of a car.
-The higher the cost of operating a vehicle the more a
costumer will search for alternative transportation methods.
Bargaining Power of Suppliers:
Low/Increasing
-Traditionally very low power of suppliers due to the large
numbers , but in last years this power is increasing.
-Suppliers are becoming bigger and more specialized.
Bargaining Power of Buyers:
Moderate/High
-Costumers choose considering price, quality, appaerance,
environmental effects and the brand.
- Many models and brands offering similar products at similar
prices : low switching cost
- Individuals buyers can non affect the price
Competition among existing players:
Despite being a concentratre industry, the competition is
intense. Emerging markets are playing an important role.The
industry is no longer the playground for the big 3 (Chrysler, Ford ,
GM)
Competition is intensified by Maturity of developed markets,
diversity of companies in term of culture and strategies and low
switching cost for costumers.

9. Flexybility
Operational
Efficiency
Distribution
Network Brand Loyalty
Focused
Strategy
Liquidity
Compliance with
regulatory
requirements

12. Source: www.statista.org

13. Source: Adapted from PWC, 2015 Auto Industry trends

18. Increasing Electronic Content:
Electronic contents and software
accounts for the 35% of total cost of
a car and accounts for the 90 % of
new features and
innovation.Telematics features, also
present a chance to build a closer
relationship with customers and
increase margins
Platform Modularization:
OEMs are increasing model choice
and reducing vehicle architecture,
common components can be
produced in larger scale and are less
expensive

19. Changing product-mix to address
regulatory requirements:
Corporate Average Fuel Economy
(CAFE) regulations are more
expensive for OEMs to comply with,
requiring higher volume to amortize
increasing costs. Regulators also
requires higher safety standards
Changing of Retail Activities:
Customers have access to more and
better information hence are more
involved in the purchase decision ,
inculding financin and insurance.
Customers requires quick
transactions and to be involved in the
choice of features and model’s
characteristics.

22. Ratios Industry Average
5Years sales growth 5,11%
P/E 12,70
DividendYeld 2%
Current Ratio 1,30
Quick Ratio 1,10
Total debt to Equity 1,46
Gross Profit Margin 22,60%
EBITD Margin 10,30%
Net Profit Margin 4,86%
ROE 12,7%
ROI 6,80%
ROA 3,50%