External Environment Analysis of Car Motor Vehicle Industry 2022

Running head: EXTERNAL ENVIRONMENT ANALYSIS OF CAR MOTOR VEHICLE
INDUSTRY
External Environment Analysis of Car Motor Vehicle Industry
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1EXTERNAL ENVIRONMENT ANALYSIS OF CAR MOTOR VEHICLE INDUSTRY
Table of Contents
1. Introduction..................................................................................................................................2
2. History of World Automotive Industry.......................................................................................2
3. Five Forces Model of Global New Car Motor Vehicle Industry.................................................3
4. Preference of Car Manufacturers to Import Rather than Manufacturing in Australia.................5
5. Conclusion...................................................................................................................................6
References........................................................................................................................................7

2EXTERNAL ENVIRONMENT ANALYSIS OF CAR MOTOR VEHICLE INDUSTRY
1. Introduction
External business environment analysis takes into consideration evaluation of macro-
environmental analysis that can facilitate in development of strategies in driving organisational
growth. Industry environment analysis includes developing set of contingencies that has a direct
impact on the company’s strategic response (Blázquez and González-Díaz 2016). The objective
of the report is to analyse the external environment through conducting five forces analysis,
evaluating background of the global automotive industry and then explaining the reasons for
which he car manufacturers prefer to import rather than manufacturing within Australia.
2. History of World Automotive Industry
The global automotive industry was established in the year 1860 with including hundreds
of manufacturers and during the time of great depression the world had more than 32,028,500
automobiles in use. The global automotive industry includes the organizations and the related
activities associated with the manufacturing of motor vehicles encompassing components such as
fuel, batteries and tyres (Bloomfield 2017). Over the years, world’s automobile industry’s major
products are passenger automobiles along with light trucks that encompass vans along with
sports utility vehicles. Commercial vehicles such as delivery trucks are important within the
automotive industry but are considered secondary. The automobile industry has dominated the
world and is growing at a steady rate of 20% (Bolton, Murray and Fluker 2017). The global
automobile companies revolutionaries over the years with observing great prosperity within the
European automobile industry with production of cars from by Henry Ford and his model T cars.
Mass production of cars in the industry resulted in production of cheapest vehicles that can be
affordable for the American and European citizens. In the early 1900s several automobile