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241According to Griffin and Shen 2013 the automotive industry generated an annual domestic revenue of 2 3 trillion USD and annual global revenues of 9 trillion USD As of the December 2017 the industry employed over 2 9 million people in areas such as manufacturing and retail trade National Employment and Seasonally Adjusted Table The following five industry forces within the automotive industry are the most important factors that executives should consider 1 Bargaining power of buyers As buyers get more sensitive to prices they would switch to any other brand that would offer greater value for the money they are willing to spend 2 Bargaining power of suppliers nowadays car manufacturers are becoming system integrators thus relying heavily on their suppliers 3 Rivalry between established competitors competition is fierce and car makers should pay great attention to their competitors 4 Threat of entry The costs of entering the market is very high which would create a barrier to new entry 5 Threat of substitutes Other available transportations don't impose a great threat to the car s market since they are not as convenient as cars
Accessed 14 Jan 2018 KPMG 2018 Global Automotive Executive Survey 2017 online Available at https home kpmg com xx en home insights 2017 01 global automotive executive survey 2017 html Accessed 14 Jan 2018 Mohr D Müller N Krieg A Gao P Kaas H Krieger A and Hensley R 2013 The road to 2020 and beyond What's driving the global automotive industry online Available at https www mckinsey com industries automotive and assembly our insights the road to 2020 and beyond what's driving the global automotive industry Accessed 14 Jan 2018 National Employment n d Retrieved January 12 2018 from https www bls gov iag tgs iagauto htm emp_national Steinbuch 2018 7 Reasons Why Tesla Has Been So Successful online Available at https steinbuch wordpress com 2015 01 22 7 reasons why tesla has been so successful Accessed 14 Jan 2018 Szymkowski S 2018 Tesla Model S durability cars with 250K and 300K miles still humming along happily online Green Car Reports Available at https www greencarreports com news 1112465_tesla model s durability cars with 250k and 300k miles still humming along happily Accessed 14 Jan 2018
