Industry Analysis & Industry Trends
Different parts of the Automotive industry have undergone a variety of changes in fortune over the past five years. While the entire industry felt the shock of the global financial crisis, its aftermath has involved the manufacturing side breaking down while the wholesale and retail arms accelerate ahead. The global financial crisis shattered new car sales, negatively affecting all industries up the automotive supply chain, but benefiting repair and maintenance operators as consumers held on to ageing vehicles. A recovery in new car sales has driven revenue growth of an estimated 2.0% annualised over the five years through 2013-14, to reach $181.1 billion. Growth of 0.6% is projected for the current year... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry vary significantly depending on the type of firm. Manufacturers (of vehicles and parts) have very high barriers to entry. Car producers require a very significant level of investment into large-scale production and machinery to support this. They also need to invest into costly R&D projects. New entrants could struggle to carry out such a level of investment and have trouble having access to the latest technology. Component manufacturers require strong relationships and contracts with car producers, something that a new entrant will not have.
Retailers have medium barriers to entry. Their main hurdle is being able to enter into franchises with manufacturers to carry brands that consumers want to buy... purchase to read more