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Report on Growth of the Global Automotive Sector

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Added on  2020-02-05

Report on Growth of the Global Automotive Sector

   Added on 2020-02-05

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Introduction:The report assesses the internal and external environment analysis of an automotive company,Land Rover. It is a leading car manufactures in the United Kingdom and exports its vehicles in178 countries across the world. The report discusses growth of the global automotive sector andmarket shares, growth and revenues gained by the company. What competitive advantage LandRover achieved over its competitors and global customer base of the company is also determinedand stated in the report. Though the company is leading car manufacturers but there are certainissues with which company has been dealing from long period. Certain issues discussed in thisreport are related to reliability of Land Rover’s vehicles, its fuel efficiency and fuel economy andafter sales services of Land Rover. Customers are finding it difficult to maintain the LandRover’s vehicles after its warranty period. Report also provides the recommendations to mitigatethese issues. The external environment of the company is analyzed through PESTLE, and fiveforces analysis. Overview:The global automotive industry is experiencing boost from last two decades. It has been growingcontinuously. Industry incorporated new technological advancement and innovations and newmarkets have opened, according to the emerging trends (Jones, Smith and Hudson, 1999). Whileconsidering the changes in the past paced environment and consistent innovative advancement,automotive business model and the industry is subjected to rapid growth, disruption and change.
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The chart shows active and excited buyouts of global automotive companies. At the starting of21st century, Automotive Industry has come up to be an active sector. Let us talk about one of theleading automotive organization which is being discussed in this report in Land Rover. It is oneof the leading British car manufacturing companies. Headquarter of Land Rover is situated in theUK, and employed around 25,000 to 26,000 employees. The vehicles of the company aremanufactured across five different sites, and company further sells those vehicles into 178countries across the world. Land Rover is highest value exporter in the UK, because around 80%of its vehicles being sold abroad (Walters, 2007). Growth:The following chart shows growth rate of the Land Rover from Financial Year 2011 to FinancialYear 2016. The growth rate will be noticed through the annual global sales revenue of the LandRover. The sales revenues are shown in million British Pounds. There was continued growth inrevenue over this period and an increase of over 12 billion GBP between 2011 and 2016(Hollebeek, 2016).
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20112012201320142015201605,00010,00015,00020,00025,00023,456Annual Sales revenue Growth of Land RoverRevenuesinmillionBritishPoundsFigure: Annual Sales revenue growth of Land RoverThis statistic shows the monthly United Kingdom (UK) market share values for Jaguar LandRover between January 2014 and June 2016. Jaguar Land Rover is a subsidiary of Volkswagen.Of the two sub-brands, Land Rover had the higher market share while Jaguar consistently heldless than one percent of the new car market, apart from in July 2015 when Jaguar's market sharereachet a peak of 1.34 percent.Market Share:The annual market share value of Land Rover between FY 2014 to FY 2016 is 25.13%, 31.36 %,36.45% respectively. Land Rover is a subsidiary company of Volkswagen and it has two sub-brand, Land Rover and Jaguar. Land Rover experience continuous high shares in market whileJaguar held less than one percent in UK’s new car market. Environmental AnalysisFive Forces Analysis
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