Industry analysis of the car industry

With more thanemployees, Toyota is a leading player in the global automotive industry. Various external factors influence Toyota and the global automotive industry. Political stability in most major markets opportunity Free trade agreements opportunity Governmental support for ecofriendly products opportunity The political stability of major markets is an opportunity for Toyota to grow with minimal political tension. Also, free trade agreements involving Japan and other countries where Toyota operates present opportunities for improved market penetration.

Industry analysis of the car industry

Business historian Michael A. Cusumano details the spectacular developments in Japanese productivity, quality, and process flexibility that have occurred over the past thirty years. His findings complement those of John F.

It also reflects how effectively they reduce the number of parts and semifinished goods; these add to operating costs and often cover up inefficient practices or process errors.

Industry analysis of the car industry

High productivity and other aspects of process efficiency, such as rapid inventory turnover, help solve a problem as old as mass production itself: Looking for the reasons Japanese companies have managed this problem so well, many authors cite the contributions of Japanese workers and Japanese culture.

However, the performance of Japanese firms in auto production depends not on the employment of Japanese workers but on Japanese innovations in technology and management. Perhaps the most important innovations challenged fundamental assumptions about mass production.

These consisted of revisions in American and European equipment, production techniques, and labor and supplier policies introduced primarily in the s and s, when total Japanese manufacturing volumes and volumes per model were extremely low by U.

This article is meant to promote that understanding by summarizing some of the major findings from a five-year study of the Japanese automobile industry focusing on Nissan and Toyota.

The concluding section of this article suggests what managers might learn by examining not only the nature of Japanese competition, but the potential role of manufacturing as a source of competitive advantage.

Historical Myths and Realities Automobile mass production began in the U. Some observers of Japan have assumed, as a result, that Japanese firms copied U. Indeed, various authors have suggested that superior performance in manufacturing is linked to the unique characteristics of Japanese employees.

However, if the performance of Japanese firms in the automobile industry depends primarily on the unique characteristics of Japanese employees in Japan, then one would expect Japanese auto plants in the U. This is not the case. Japanese-run automobile plants located in Tennessee NissanOhio Hondaand California the Toyota-GM NUMMI joint venture have demonstrated higher levels of productivity and quality, and nearly equivalent process flexibility the ability to assemble a number of distinct models on the same lines without reducing productivity or quality compared with U.

Those who preferred in-house experimentation created opportunities for learning, as well as innovation and improvement. During the s and s Nissan, Isuzu, Mitsubishi, and Hino assembled European and American vehicles under license, largely using conventional mass-production technology developed in the U.

These models accounted for 30 percent of Japanese car production from to Toyota adopted innovation in production management as an integral part of its competitive strategy and then spent the s and s making this strategy work.

Thus Toyota, and then other Japanese automakers, did not simply implement conventional mass-production processes more effectively; they made critical changes in U. Their creativity led to greater flexibility in equipment and labor, lower in-process inventories and higher overall turnover rates, more attention to process quality, and, ultimately, higher levels of productivity.

Furthermore, during the s and s, rather than copying U.The automobile industry is very important for Iran as it is the second largest industry after oil and gas and contributes around 10% of the GDP.

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The total domestic production in Iran is dominated by 2 manufacturers namely Iran Khodro and SAIPA, which account for more than 90% of .

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A Five Forces Analysis of the Automotive Industry The great recession had hurt the automobiles industry pretty badly where some of the most well known brands were on the verge of extinction.

Had not the government intervened it would have been quite difficult for these brands to survive. A PESTEL Analysis of the automotive/automobile industry. The global automobile industry is a multi billion industry with several large brands competing for market share.

Since its foundation in the 19th century, this sector has grown to become an important part of the world economy in terms of revenue.

UMTRI provides detailed knowledge and research on the economics of the global automotive industry. Researchers generate key trends and insights through econometric analyses that help define the competitive dynamics of the industry and forecast the adaptation of new automotive technologies.

Used Car Dealers - Comprehensive guide to industry information, research, and analysis including industry trends and statistics, market research and analysis, financial ratios and .

Statistics & Facts on the Global Automotive Industry | Statista