TOWS Analysis of Automotive Industry

This report contains the TOWS analysis of the automotive industry with five forces model. It also explains the global marketing approaches with the connection to advancement in technology.

COURSEWORK

Table of Contents
INTRODUCTION...........................................................................................................................1
Industry overview........................................................................................................................1
TOWS analysis of automotive industry ....................................................................................1
Five forces analysis of an automotive industry ..........................................................................2
Global marketing approaches in the automotive industry and analyse with advancement of
technology...................................................................................................................................2
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
An industry refers to that sector that manufactures goods and services within an
economy. In automotive industry use of advanced technology is very important to increase the
market share and profitability. This report contains the TOWS analysis of the automotive
industry with five forces model. It also explains the global marketing approaches with the
connection to advancement in technology(Al Salmi and Hasnan, 2015).
Industry overview
In UK, automotive industry is famous for the sports car with premium pricing that
includes Aston martin, Daimler, jaguar, Bentley etc. This industry contains the £82 billion
revenue in the UK economy with around 1.5 million passenger vehicles and 85000 commercial
vehicles.
TOWS analysis of automotive industry
Automotive
industry
INTERNAL
ANALYSIS
STRENGTHS (S) WEAKNESSES (W)
 Evolving industry which represent the
economic growth.
 constant product innovation
 Bargaining power of
the customers
 government
regulations
OPPORTUNI
TIES (O)
 Fuel- efficient transport
 demand of green cars
 Changing lifestyle &
consumers groups.
THREATS
(T)
 Increase competition  Inactive economy.
It is highly effective for an automotive industry to evaluate the strength and weakness of
the industry for longer sustainability. There are several factors that the firm consider in this
which are as follows.
Strength/ opportunities (S/O) - In this, automotive industry represent the economic
growth of UK where people live their life in an unimaginable way. These strength is connect
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with opportunities that they provide the efficient fuel vehicles. Here the industry innovates new
products for the people demand of green cars. This will increase profits of the industry.
Strength/ Threats (S/T) – The major strength of automotive sector is continuously
innovation in the products but at same time it creates threats in this because many rival firms in
this industry also also innovate their products which increase competition.
Weaknesses/ opportunities- The major weaknesses in automotive industry is the
government regulations which affect the business in global terms. But at the same time it creates
an opportunity in this by providing the environmental friendly cars which attracts more people to
buy this at any cost(Anwar and Hasnu, 2016).
Weaknesses / threats (W/T) – Inactive economy of the UK creates more competition
with other nation automotive industry. This will reduce profits and efficiency of the firm.
Five forces analysis of an automotive industry
Porter's five force analysis is an essential term to recognise the problems and
opportunities in the market of UK that are explained below.
Threat of new entrant- In this stage enters a new brand is very difficult in automotive
industry because it requires lots of financial resources with more new advanced technology.
This factor is weak in this industry.
Bargaining power of suppliers- in automotive industry bargaining power of suppliers is
very weak because there are large number of buyers with very few purchaser. In this force
brands like Bentley, Aston martin hold immense clout because the inputs are available in ample
amount and buyer easily switch from one supplier.
Bargaining power of buyers- this force is moderately strong in automotive industry
because there are few buyers of the cars that contains premium pricing. Here, the customers are
able to switch their brand easily.
Threats of substitutes- several substitutes and alternative vehicles like taxis, buses etc.
but no one can give the comfort of owing an auto mobile does.
Competitive rivalry- In automotive industry there are many rivalry brands are availble in
the market like Bentley, Aston martin etc. where customers can easily switch the brands
according to their preferences. It will reduce the brand image(Mathooko and Ogutu, 2015).
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Global marketing approaches in the automotive industry and analyse with advancement of
technology
There are different types of marketing strategies that should follow in automotive
industry.
Search Engine Optimisation- the major and global marketing strategy of an automotive
industry is that its drive more organic traffic in their official website. In simple terms it means
showing up the industry in a very top on google and other search engines. In this feature industry
use efficient fuel transport this will attract more user but at the same time there are many rival
brand are available. To overcome this, industry user innovative technology to earns more profits.
Social media marketing- it is the most popular way to connect with wide range of people
in a very short period of time with less cost. Automotive industry used this by showing their
presence on Facebook, Instagram etc. to earn more market share. Because of changing lifestyle
of the people increase the use cars this will increase the profits of the company and there is no
fear of entry of new brand because they needs lots of investments in this. This information is
receive by using the social media. Advancement in technology is very much important like
hybrid cars etc. to attract more and more customers(Singh and Prasad, 2015).
CONCLUSION
From the above preceding information automotive industry plays an important role in
advancement of technology this will crates many opportunities and threats to the industry.
Hence, this report explains the TOWS to know the internal situation and analyse the porter's five
model to examine the competitors and customers who present in the market. Further more it
ensures the marketing strategy to increase the market share of the industry.
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REFERENCES
Books & Journal
Al Salmi, M.A.A. and Hasnan, N.B., 2015. SWOT and TOWS matrix e-Government analysis
review on Sultanate of Oman. International Journal of Learning and
Development. 5(4). pp.13-23.
Anwar, J. and Hasnu, S.A.F., 2016. Business strategy and firm performance: a multi-industry
analysis. Journal of Strategy and Management.
Mathooko, F.M. and Ogutu, M., 2015. Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities in
Kenya. International Journal of Educational Management.
Singh, A. and Prasad, S.M., 2015. Remediation of heavy metal contaminated ecosystem: an
overview on technology advancement. International Journal of Environmental Science
and Technology. 12(1). pp.353-366.
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