Assignment 2: Application of Porter’s Five Force Strategy to the U.S. Auto Industry
Porter’s five force strategy is a framework for making a qualitative evaluation of a firm’s strategic position which according to Porter should be used at the industry level, a marketplace in which closely related substitutable products or services are sold. Porter’s analytical framework consists of those forces that affect a producer’s ability to serve its customers and its profitability. A change in any of these five forces requires a re-assessment of the marketplace.
According to this model, success in a business is primary based on managers knowledge of competition in the industry, customers, suppliers, potential entrants, and substitute products. The extended rivalry that results from all five forces defines an industry’s structure and shapes the nature of competitive interaction within an industry.
This research paper must be documented in Microsoft Word, APA formatted, and includes at least three scholarly peer reviewed articles. I strongly recommend the use of the APUS library since the most acceptable resources can only be found in protected database.
The paper is required to be about 10 double spaced pages and submitted in the Assignment section of the classroom by midnight, EST, Day 7. Upon submission, your paper automatically will be submitted to “Turnitin.com” for plagiarism review. Your paper must be structured as
1.Cover page with a running head,
2. Abstract
3. The U.S. Auto Industry
3.1. U.S. Auto Industry Definition
3.2. U.S. Auto Industry Market Structure
3.3. U.S. Industry Future Outlook
4. Application and Analysis of Porter’s Five Forces Strategy to the U.S. auto industry
4.1. Bargaining Power of Buyers
4.2. Bargaining Power of Suppliers
4.3. Competitive Rivalry in the Industry
4.4. Threat of New Entrants
4.5. Threat of Substitutes
5. Conclusion
6. References
Burke, A., van Stel, A., & Thurik, R. (2010). Blue ocean vs. five forces. Harvard Business Review, 88(5), 28-29.
Dobbs, M. (2014). Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), 32-45.
Cole, Fulton, and Akridge. Industry Analysis: The Five Forces
https://www.extension.purdue.edu/extmedia/ec/ec-722.pdf
Ireland, R. D., Hoskisson, R. and Hitt, M. (2008). Understanding business strategy: Concepts and cases. Cengage Learning.
Porter, M.E. (March–April 1979) How Competitive Forces Shape Strategy, Harvard Business Review.
Porter, M.E. (January 2008) The Five Competitive Forces That Shape Strategy, Harvard Business Review.
