Environmental Analysis of Automobile Industry - Desklib

Environmental
Analysis of Automobile
Industry

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Internal and external analysis of Aston Martin...........................................................................3
Critical evaluation of challenges in internal analysis..................................................................8
Critical evaluation of challenges in external analysis.................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global business environment considered to those elements which effects the organization
functions globally. It includes competitors, consumers, government regulations, suppliers and so
on. The organization which is selected for evaluating internal and external factors in this report is
Aston Martin. It is a multinational car producer company and their products are expensive in
nature (Abbas, 2020). The company was established in 1913 and is headquartered in United
Kingdom. The ultimate purpose of this company is to facilitate highly luxurious product to
customers. This report will prepared with the help of using PESTEL, SWOT, Value chain and
Porters five force model on company's competitive advantage in the market.
TASK
Internal and external analysis of Aston Martin
Internal analysis is a process which is utilized by Aston Martin for evaluating their
capabilities, assets, features, competencies and others. Aston Martin, it is one of those
organization who maintained their brand image between by facilitating comfort and high tech
automated features to customers.
SWOT Analysis -
It refers to strategic planning method which is utilized by company for handling difficult
situations easily within the organization (Alhamali, 2019). In context to Aston Martin,
management used this technique for finding their strength, weakness, opportunity and threat
which are described below-
Strength includes -
 Brand image – Aston Martin have high brand image between in market. Due to effective
brand reputation positive word of mouth are easily spread for their product in other
locations.
 Use of skilled workforce – Aston Martin is always using talented and knowledgable
employees in their work place for serve quality products to consumers. With help of
talented employees durability of their product increased for long time.
Weakness include -

 Limited range of products – Due to high price in their vehicle customers are limited in
numbers. Due to this the lower and upper segment customers are not able to afford these
products easily.
 Small selection range – In context to Aston Martin, management mostly focused on
those models which are single and fully loaded features. It leads to decrease and limits
the customer's choice.
Threat includes -
 Huge competition - Due to various competitors Aston Martin are facing specific
challenges for selling their product (Ari, Karatepe, Rezapouraghdamand Avci, 2020).
Competitors includes Jaguar, Porsche and others are providing the same specifications in
upper customer segments which create threat for them.
 Increasing in fuel cost – In present time the fuel prices are highly which creates threats
for company in their sale. Due to this it is necessary for Aston Martin that they must
design fuel efficient engine for increasing their average.
Opportunities includes -
 New target markets – It is a necessary for Aston Martin that management must focus on
all market segments not only upper class segments. It leads to enhance the profit and
good relations with users easily
 Technology – Technology played major role for attract the consumers effectively. Aston
Martin is used high innovative specifications in their product. This facility is effective for
increase their market share easily.
Value Chain Analysis -
It refers to the group of actions which is initiated by organization do develop value for its
customers. In this process departmental functions are carried through different stages by the
organization which leads to enhance their work efficiency. In context to Aston Martin,
management used this technique to provide high quality services and products to customers in
long run
Support activities -
 Firm infrastructure – Aston Martin established advanced infrastructure for run their
operational and departments functions smoothly. It includes assembly line and financial