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Porters Five Forces - Essay Example

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I selected this segment because it is the number one source of revenue for the company. (United States Autos Report 2014)
1) Who are the primary suppliers (identify at least 2…
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Download file to see previous pages Johnson Controls supplies the Ford franchise with car batteries, electronics, seats and interiors. TRW is ranked higher than other peers in the industry including Johnson Control and it is due to this reason that TRW Automotive received two Ford World Excellence Awards. (United States Security Exchange, 2014)
3) Who are the major buyer groups of the product provided by the industry; what are their characteristics ( i.e. size of group, demographics, income level, etc.); are there many or few in each buyer group; who has power over whom?
4) The golden generation (55 to 64 year olds) had higher vehicle purchases than other age groups according to a recent survey by Michigan University. In 2011 alone, Ford Motors sold 23% of all its models to this age group, which was higher than all other industry players combined. This age group is estimated to be around 76 million and has passed 35 to 44 year old age group as the consumer leaders. (United States Security Exchange, 2014)
According to 2014 survey, the three main industry players are General Motors Company, Ford Motor and Toyota Motor. The total number of units sold by General Motors was 2.7 million; this represents 17.9% of the total market share. Ford Motors came second with 2.4 million units sold; representing 15.9% market share. Toyota came third with 2.2 million units sold in the US, representing 14.3% of the market share. (Business Monitor International, 2014)
Ford’s F-Series remains to be the best selling model in the US. However, there are domestic and international brands that are growing in popularity each year. Chrysler’s Jeep Cherokee reported 9% increase in sales, 1% shy of the F-series. Subaru has also seen its sales rise after it switched focus from china to the US. Other popular brands include Mercedes Benz and BMW. (Business Monitor International, ...Download file to see next pagesRead More
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