Environmental Analysis of Automobile Industry

Assessment 1 Environmental
Analysis of Automobile
Industry

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Porter’s five forces......................................................................................................................3
SWOT analysis...........................................................................................................................4
Pestle analysis.............................................................................................................................5
Porter's Value..............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Environmental analysis is said as the process which helps in the examination of the all
the components which are either internal or external that has the influence on the organizational
performance. For this project the chosen organization is Aston Martin is British Independent
Auto mobile manufacturing company which makes luxury sports cars. In this project the internal
and external analysis of the organization is done through models like SWOT, PESTLE, Value
Chain and also the competitive advantage their core values.
MAIN BODY
Porter’s five forces
Porter’s fiver forces a model that provides the different insights into the opportunity and
threats to the organizations corporate strategy. It helps in understanding the internal environment
which related to the competition of the organization. This model talks about the five different
competitive forces which are as follows,
Supplier bargaining power:
The UK auto mobile industry is considered to be divided into the different component
and is helpful for manufacturing segment. For Aston Martin there are 2600 different components
which manufacturers in UK. Their contribution in the production of the auto mobile is over £4.5
billion. Thus, the bargaining power of the suppliers is not very strong as there are so many of
them.
Competition:
There has been an increase in the new sports car organizations which have increased the
bargaining capacity of the customers. As the more companies have started to build cars which
are ultra-high end vehicles Aston Martin as a car manufacturing company has to face
competition which has resulted in the decrease of their profits (Yang, 2019). In the UK market
there are other brands which are above this company in dominating the market.
Threat of Substitute :
This organization has successfully placed itself in the luxury car segment which is not a
necessity for most of the customers. As this product is uxorious therefore the customers that want
to buy the cars of Aston Martin will only buy the products of this company. Still this company