Question

Most firms face external environments that are highly turbulent, complex and global. How do managers in boundary–spanning positions obtain information to analyze global industry/ market changes and trends? Give example of any one industry/market i.e. global auto industry. ( Not less than 1000 words )

Guide Lines

• Porters’ diamond theory
• Competitiveness of nation diamond theory
• Competitiveness of industry 5 forces
• Give both diagrams and then explain
• Give examples based on hospitality industry, comparison will give you how competitive they are

Answer 1

Analysis of environment is a strategic tool, we can easily identify all internal and external elements through this process. This analysis helps to assess the level of threat and opportunities. Here we are taking example of auto industry MARUTI SUZUKI.

We will explain this example with the help of Porter's 5 forces model for industry competitiveness.

Maruti Suzuki is the one of the leading car manufacturing organisation which have many competitor. In 1982, Government of India enters into joint venture with Japan's company Suzuki motors corporation.

RIVALRY WITH THE INDUSTRY

1. New multinational competitors may be neters in the market

2. Increase in competition in selective market segment.

THREATS

1. Need more financial strenght and working capital as it needs enginea and high building capacity.

2. More players are enters in Market and more players are yet to come.

MARKET STRENGHTH OF SUPPLIER

1. Large number of components suppliers are available which gives strength to organisation

2. Improvement in models and variants of their cars.

MARKET STRENGTH OF CONSUMERS

1. Large numbee of consumen awareness

2. Prices of cars matters among the customers

THREATS FROM SUBSTITUTE

1. Preference from consumers are changing (mini cars are used instaed of mid size cars)

2. Launching of sports car in same prices increased competition

3. Lacking in competitive advantage.

Major Competitors

1. Honda

2. Hyundai

3.TATA

4. Ford