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iles, and computer chips. The study also mentioned that for each autoworker there are seven other 

jobs created in other industries.

2.3 Sociocultural

The consumer automotive market, especially the vehicles market, used to be dominated by men but nowadays is not true. 

Marketing strategies are also focusing on emotions. The presence of women in the market shall turn out as fallback to 

cushion declining sales

On the other hand, young consumers increase their spending power by working in a part-time job or by receiving larger 

allowance from their increasingly financially successful parents.

2.4 Technology

the internet has a great impact on every industry in the anywhere and has also affect the automobile industry. According 

to the J.D. Power and associates 2006 New Autoshopper.com Study, 59% of the buyers referred to the internet before making 

their purchases and out of that 59%, 85% of the serious buyers visit the manufactures website before going to the dealer 

for a test drive.

2.5 Environmental

On 30th November 2007, the business leaders of 150 global companies published a communiqué to world leaders calling 

for a comprehensive, legally binding United Nations framework to tackle climate change. In fact, there is a programme in 

which WWF and businesses collaborate to show Leadership in addressing climate change.

波特五力分析-3. Porter's Five Force Anaylsis

3.1 Threat of new entrants

The threat of new entrants is relatively low. This is mainly due to the fact that it will cost a new company a lot of 

investment cost and know how to enter the automotive market.

3.2 Threat of substitute products

Tthe coverage of destination is limited, besides, bus, metro, taxi are not products that can replace the vehicle. 

Therefore, the threat of substitute products is relatively low to moderate

3.3 Bargaining power of suppliers

Due to the fact that suppliers are united, they are a very strong threat in the automotive market, nevertheless, the 

United Auto Worker, the only supplier of labor, has exerted a great deal of the leverage over the benefits and wages 

provided by the big three, therefore we can conclude that the bargaining power of supplier is strong.

3.4 Bargaining power of buyers

As we look at consumer behavior when buying vehicles the conclusion can be made that their power is relatively low. Mainly 

the reason for this low power is because individual consumer has some power over price within a given dealership, but low 

power over manufacturers.

3.5 Competitive rivalry within the industry

Due to the fact that there is a intense completion going on in the auto industry the rivalry within the automotive market 

is high. There are a lot of choice and intense competition in internet sales that can damage a company when they don't 

keep up with their competitors. See appendix 1 for more information.

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