Presenter Syndicate 54 Gareth Evans

1. discusses the main technique used to analyze competition in an industry the five forces model 2. describes the concept of strategic groups and implications for industry analysis 3. discusses how industries evolve over time, with reference to the industry life cycle model 4. shows how trends in the macro-environment can shape the nature of competition in an industry.

General Motors Company is one of the worlds largest auto makers and traces its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling. GMs largest national market is China, followed by the United States, Brazil, the United Kingdom, Germany, Canada and Russia

1. Apply the five forces model to the industry in which your company is based. What does this model tell you about the nature of competition in the industry? 2. Are any changes taking place in the macro-environment that might have an impact, positive or negative, on the industry in which your company is based? If so, what are these changes, and how might they affect the industry? 3. Identify any strategic groups that might exist in the industry. How does the intensity of competition differ across these strategic groups? 4. In what stage of its life cycle is the industry in which your company is based? What are the implications of this for the intensity of competition both now and in the future?

1. What is the most popular new vehicle in Australia in 2010/11? What is its % market share?

What is the second most popular vehicle? Market Share? How many European cars in the top 8 models? Name them.

Aust. Vehicle sales (no.) 2010 78 267 2011 77 424 Change from previous year (%) Trend -9.7% Seasonally Adjusted11.5 %

SALES BY TYPE OF VEHICLE Trend - When comparing national trend estimates for June 2011 with May 2011, sales of Passenger, Sports utility and Other vehicles decreased by 1.4%, 1.6% and 2.1% respectively.

1990 14 Million 2000 17.8Million 2004 17.2 Million 2006 17 Million 2007 16.5 Million 2008 13.4 million 2009 10.6 Million 2011 ?? Note this includes increases in cheaper builds in China and India.

Competition is intense and getting stronger with break up of industry in SUV, saloon and hybrid vehicles and emerging Asian models. Environmental damage is considered a major risk to industry expansion. Oil shortages and the increase in petrol prices Search for clean vehicles Decline in Fleet markets during recessions

Truck, SUV and family cars. competition equally balanced across industry

Western vehicle market is about to enter decline stage from mature Industry ( saturation) and as extrernal environmental pressures increase e.g national economic stagnation, emerging producers serving own markets in India and China.

Hill and Jones (2010) GM website Australian Bureau of Statistics ( ABS)(2011) US Census Bureau Abstract (2011) Australian Financial Review 04/08/11