Environmental Analysis of Car Industry

This report provides an analysis of the environmental factors shaping the car manufacturing industry, including political, economic, social, technological, environmental, and legal factors. It also discusses the opportunities and challenges faced by companies in the industry and provides suggestions for taking competitive advantages.

Environmental analysis of an industry
assessment one

Table of Contents
Introduction....................................................................................................................................3
Task.................................................................................................................................................3
A Major factors that are shaping the business environment of car industry...............................3
B-Competitive analysis to identify challenges and opportunities including the suggestion how
companies within car industry can take competitive advantages................................................6
Conclusion......................................................................................................................................8
References.......................................................................................................................................9
Introduction
San Juan Mendez consist of various factors within the environment that has huge impact
on the companies profitability and their strategies. it is necessary for the companies to be aware

of those factors so they can take competitive advantages and assure their presence within the
market.
This report will cover business environment of the car manufacturing industry I need to
discuss about the changes in car manufacturing industry within five years. This report will also
critically assessment of the opportunities and challenges that business environment have and it
will discuss how company can take good position within the market and take competitive
advantages.
Task
A Major factors that are shaping the business environment of car industry
Car manufacturing industry of the United Kingdom has huge contribution in the economy
to grow. The automobile car industry of this country is the best known for their sports car and
premium car that includes the Bentley, Jaguar, Land Rover, mg, rolls Royce etc. Recent five
years this industry had developed so much and creating job opportunities and Bing huge taxes to
the UK company and growing rapidly Motor Vehicle Manufacturing in the UK. (2020). Any year 2018 the
UK automobile manufacturing sector had created their turn over around 82 billion pound and
generated 18.6 billion found in value to the UK in economy and produced around 1.5 million
passenger vehicle an 85 1000 commercial vehicles which is an Good growth. But after the
Coronavirus pandemic it has affected and make the industry five years low again. UK car
manufacturing fell 44% last year compared to the previous here. do the lockdown domestic
orders and export remain depressed and last one performance marked the sector second worst
since car plants restarted after the lockdown. The Financial Times went on the advice that just
51039 cars rolled off British production lines. the total fell from the 92153 in August 2019.
Meanwhile August output for the UK buyers fell around 58% which is just by the 7795 vehicles.
the numbers of car mode for the export fell around 41% which is around 73443 cars.
PESTEL analysis
Political factors
There are some political factors that have huge impact on the car manufacturing industry
of United Kingdom. It has affected the company within five years due to the Brexit
memorandum (Böckin and Tillman., 2019). Most of the UK autumn well company was having a

good market within the European mainland but after the Brexit memorandum, things have been
changed and companies are forced to decline their investment in European markets.
Economical factor
Economical factors Also have huge impact on the car manufacturing industry, it is
becausr the cost of raw material is increasing day by day and it is also affecting the final prices
of the cars And companies within this industry are not able to provide satisfaction on the basis
of car price. To their customers inflation in the country also affecting this industry becausr
people have less money to spend on purchasing vehicles.
Social factor
According to the social factors people look for the cars that are let better features unless
price (Kang and et.al., 2018). it is not possible for the car manufacturing industry to provide
product and services in less price with higher quality. within the five years car manufacturing
industry has totally changed that they are bringing more featured car for the customers to satisfy
the demand to reduce the cost of cars they are using less quality body material for the cars like
fiber.
Technological
Technology has been changed within the last five years and On the basis of technology
advantages UK car manufacturing industry has increased their growth and they are providing the
self driving vehicle technology that is helping to satisfy the customer need and companies are
also mostly focused on developing the electronic cards that are eco friendly and good for the
environment.
Environmental
In the last decade UK government has develop stick rules and forcing the companies to
look for the environmental issues SWOT and PESTEL analysis of the automobile industry.
(2020). Car manufacturing industry of the UK have take the competitive advantages by making
the electronic because that are eco friendly and it does not have any impact on the environment.
it is also helping them to meet their policies related to the environment and this new technology
trend is providing competitive advantages.

Legal
Legal system of the United Kingdom has huge impact on the car manufacturing industry.
There are some regulations related to the automobile safety, sticker emission regulations and
expanding the environmental regulations. Necessary for the all the companies to follow this all
rules and regulations.
SWOT Analyse
Strength
 Cost per mile will drop- Upcoming five years the cost her mind will be dropped
according to the car manufacturing industry exports, industry he's looking to develop the
make us that will be cost effective, technology less, long vehicle lives will be provided to
the customers.
 The recent five years car manufacturing industry of the United Kingdom has created trust
among the customers by providing the quality product and services to them.
Weakness
 The growth of the EVs And hybrid has profound implication on the traditional
aftermarket model ((Ulubeyli and Kazanci., 2018)). one of the leader from the United
Kingdom automobile industry Mike Woodward has been estimated that till the end of
2030, the size of this market will fall around 25% of its current level.
 Most of the car manufacturers within the UK are dependent on their home market as
compared to the others. it becomes their weakness becausr most of their cards ourselves
within the UK and they cannot be dependent on United Kingdom only.
Opportunity
 Companies within the automobile industry of UK can have a good opportunity to expand
their business within the new markets where they can take competitive advantages. some
of the emerging economies are Indonesia, China and India etc (Sun and et.al., 2019). That
can be a good opportunity for this industry to take competitive advantages.

 Invest in the hybrid an electronic vehicle can we go to possibility for the UK automobile
industry and they were able to come up with the new technology and trends that will
provide a huge growth in their car selling.
Thread
 Increasing the Labour rates within the United Kingdom is creating thread upon the car
manufacturing industry. employees are demanding high wages for their work which
become threat for this industry.
 Competition within the you can industry is very high
B-Competitive analysis to identify challenges and opportunities including the suggestion how
companies within car industry can take competitive advantages
Companies within the car manufacturing industry can have huge competitive advantages.
it is necessary for them to identify the opportunities and overcome from the challenges, for that
they have to identify what challenges they are facing in industry and how much competition is
there within automobile industry of United Kingdom.
Porters 5 forces
Threat for new entrants
New entrants have the high barrier to take entry within the autumn wine industry of the
United Kingdom. There are very few players are companies are capable to take entry within the
automobile industry because it requires higher capital investment to set up the manufacturing
facilities, distribution networks an many other services. It is challenging for the new entries to
take competitive advantages because there are already a huge companies who are having large
market share within the United Kingdom.
Competition from substitutes
The threat of the separatist on the other hand does not exist, increasing the prices of fuel
within the United Kingdom is pushing some urban drivers to use the public transportation, which
is creating a threat upon companies within automobile industry (Sueyoshi, and Wang., 2018).

most of the owners of vehicles still agree that the convenience of using personal weakness
offsets increase in fuel prices so they prefer public transportation more than personal vehicles.
Bargaining power of suppliers
The bargaining power of the supplier is low on the car manufacturing industry because
There are many suppliers who are selling their pro material to the car manufacturing companies,
companies have more options to go with the suppliers and they look for the lowest building
suppliers to add some value in their vehicles. bargaining power of the supply is low so It gives
power to the companies within the industry to negotiate with the suppliers and give them
affordable deal. it isn't good opportunity for the companies to take competitive advantages within
the market.
Bargaining power of buyers
Bargaining power of the Customer is low becausr customers always go with the quality
products and features within the vehicles. this remove the threat from the automobile industry
because they are able to sell their product and prices according to them but they have to aware
that product prices should be affordable for the customers because they are also having many
other forces and this power can become threat for them. new computers have opportunity to take
competitor advantages because they can sell their product and prices by providing the quality
services and product.
Revelry Among competitors
With the rise of foreign competitors within the five years have created huge threat upon
the UK Automobile industry. Industry has become much more intense on the global level and
forms compete on the prices and known prices dimensions (Aung., 2017). Do serious
competition began to emerge in the last five decades with the flood of new vehicles and design
and hybrid vehicles. Some of the global competitors like Tesla and many more other companies
have created huge market shares including the UK. that is creating thread upon the other
companies within the United Kingdom. it can be challenging for the knew farms within the
automobile industry of UK to show their presence within the market.
The product like cycle

The product life cycle he’s associated with the marketing and management decision
within the business. It can be a useful strategies for the automobile industry firms to decrease
their product cost and create opportunity and it also includes challenges and risk. Here are five
stages of the product life cycle.
Developing
Developing is the first stage and it is often refers to the Valley of death. cost of the
product are accumulating with no corresponding revenue. it is necessary for the car
manufacturers within the automobile industry of UK to take time and effort an investment within
their product to make and develop product more effective and successful within the market.
Introduction
Introduction is the second stage where car manufacturers have to develop a market for the
product and build awareness among the customers who can buy their product (Moretti, and
Caro., 2017). here companies have to spend on their advertisement and car marketing by
showing the design to the customers. It will be helpful for the company to create opportunity to
get new customers who can buy their products.
Growth
The growth stage came when the product has been accepted by the customers and
companies are able to increase their market share. it is necessary for the car manufacturers within
the UK industry too measure their growth through the tools and techniques like key indicator
performance.
Maturity
This is a stage where companies products needs changes and development to make them
more attractive, it is the stage where competition increase is another competitors try to steal the
market shares.
Decline
The decline stage of the product life cycle is associated with decreasing revenue due to
the market saturation, high competition and changing customer needs, here companies have

several options that include discontinue the product, another business and sell the manufacturing
rights to the other companies and adding new features.
Conclusion
As per the report has been covered business environment of the car manufacturing
industry. This report has been discussed about the changes in car manufacturing industry of the
United Kingdom within five years. It also has been critically assessment of the opportunities
and challenges that business environment have and it has been discussed how company can take
good position within the market and take competitive advantages.
References
Books and Journals
Böckin, D. and Tillman, A. M., 2019. Environmental assessment of additive manufacturing in
the automotive industry. Journal of Cleaner Production. 226. pp.977-987.
Kang, Y. Q., and et.al., 2018. Environmental assessment and investment strategy for China's
manufacturing industry: A non-radial DEA based analysis. Journal of Cleaner
Production. 175. pp.501-511.
Ulubeyli, S. and Kazanci, O., 2018. Holistic sustainability assessment of green building industry
in Turkey. Journal of Cleaner Production. 202. pp.197-212.
Sun, W., and et.al., 2019. Environmental impact assessment of wastewater discharge with multi-
pollutants from iron and steel industry. Journal of environmental management. 245.
pp.210-215.
Sueyoshi, T. and Wang, D., 2018. DEA environmental assessment on US petroleum industry:
Non-radial approach with translation invariance in time horizon. Energy Economics. 72.
pp.276-289.

Aung, T. S., 2017. Evaluation of the environmental impact assessment system and
implementation in Myanmar: Its significance in oil and gas industry. Environmental
Impact Assessment Review. 66. pp.24-32.
Moretti, L. and Caro, S., 2017. Critical analysis of the life cycle assessment of the Italian cement
industry. Journal of Cleaner Production. 152. pp.198-210.
Online
Motor Vehicle Manufacturing in the UK. (2020) online available through.<
https://www.ibisworld.com/united-kingdom/market-research-reports/motor-vehicle-manufacturing-industry/>
SWOT and PESTEL analysis of the automobile industry. (2020) online available through.
https://www.ukessays.com/essays/marketing/swot-and-pestel-analysis-of-the-automobile-
industry-marketing-essay.php