Transcript S.W.O.T. Analysis - Thammasat University

Automobile Industry
Group 3
Matt Davis
Charlie Kim
Adam King
Brian Larson
Sean Redmond
Andy Schick
S.W.O.T. Analysis
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Ford
General Motors
Daimler/Chrysler
Major Strengths
Ford Motor Company
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Diversity
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Jaguar
Volvo
Mercury
Lincoln
Mazda
Land Rover
Second Largest Automaker in the World
Owns Hertz Rent-A-Car
Ford Motor Credit
Ford Strengths
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Supportive
Gave Generously after the September 11 Attacks
 Give Generously to Help Fight Breast Cancer
 Support Racing Teams
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NASCAR
Formula One
Etc.
4th on the Fortune 500 List (U.S. only)
4th on the Global 500 List
39th on the Best Companies for Minorities List
General Motors Company
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World’s Largest Auto Manufacturer
In 2000, Sales Exceeded $183 Billion Globally
 Gaining $5 Billion in Profits
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Manufacturing Facilities in Over 30 Countries
Sell Vehicles in Over 200 Countries
As of 1999, GM Held 15.1% of the Automobile
Market
GM Strengths
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Diversity
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Chevrolet, Pontiac, Buick, Oldsmobile, GMC, Cadillac,
Saturn, Hummer, Saab
Dominance
 3rd
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on Fortune 500 List
on Global 500 List
Alliances with Suzuki and Isuzu Motor Companies
Technological Alliances with Toyota and Honda Motor
Companies
Setting the Standard
Daimler/Chrysler
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Leaders in the Mini-Van Lines of Automobiles
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Became More Sleek Looking with Time
Leaders in the Convertible Lines
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Sebring
Major Weaknesses
Ford Motor Company
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Firestone Tire Recalls
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CEO Jacques Nasser and Chairman Bill Ford Jr.
Cannot Get Along
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Caused Stock Price to Suffer--$14.70, Lowest in Years
This past Week, Bill Ford Took Over as CEO
Cash Reserves Have Sunk to $4.1 Billion
$13 Billion on Acquisitions
 $3.5 Billion to Cover Tire Recalls
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General Motors
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Recalls Have Hindered Growth
314,000 Mini-Vans made between 1997-2000
 Repair Power Sliding Doors
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Maybe Too Diverse?
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Might Lose Focus on Some Lines
Daimler/Chrysler
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Lack of Diversification
Feel the Need to Refurbish Older Lines to Stay
Competitive
Smaller Share of the Market than Ford or GM
Opportunities
Ford Motor Company
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More Environmentally Friendly
Cleaner Engine Emissions
 Working With Environmental Groups to Help Clean the
Environment
 Solar Power
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Generosity
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Giving to More Charities
General Motors
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GMAC Financial Services
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Mortgage, Auto, and Business Financing
Electronic Business and Digital Technology
Direct TV
 OnStar System
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Becoming More Environmentally Friendly
Daimler/Chrysler
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State-of-the-Art Technology Center in Auburn Hills,
MI
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Hard at Work to Keep Chrysler Competitive
Need to Expand More Into Foreign Markets
Threats!!!!
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The threat are really the same across the board for the
automobile industry. Competition is huge, in this
industry, and nothing hurts a company more than
internal strife, as is the case with Ford Motor Company.
Also an impending recession does not smile upon any
industry in this day and age.
Toyota Strengths
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Partnerships
EPA Global 500 Award
#1 of Japanese Producers
SUVs
Toyota Weaknesses
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Poor Website
Toyota Opportunities
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Hybrid Engines
Matrix
Toyota Threats
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Consumer Confidence
Honda Strengths
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Used Cars
Honda Insight
Popularity
Honda Weaknesses
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Europe
Passport
Honda Opportunities
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Alliances
Fuel Efficiency
Honda Threats
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Second Movers
Nissan Strengths
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Teams
Revival Plan
Nissan Weaknesses
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Low Market Capitalization
Renault
Nissan Opportunities
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Revival Plan
Nissan Threats
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Low Market Share
Losing Company
Porter's Five Forces in
the Automobile
Industry
Charlie Kim
Five Forces Within Auto Industry
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Threat of New Entrants
Bargaining Power of suppliers
Bargaining power of buyers
Threat of substitute products
Rivalry among competing firms
Threat of New Entrants
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Slow sluggish state of economy
Personal consumption declined from 4.5 to 2.9%
 Productivity decreased in manufacturing level
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Automotive sector has no space for new
entrants
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Small demand base and wide choice
High Fixed cost and constant R&D
Bargaining Power of Buyers and
Suppliers
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Automakers design and assemble, suppliers have
little responsibility
Trust has been scarred by Ford-Firestone problem.
 Essentially little power is given to suppliers
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Japanese emphasize trust in suppliers allowing
for collaborative design efforts
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Corporate culture allows for such an arrangement to
work
Bargaining Power of Buyers
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Customers take over management of world’s car
business.
Over capacity - wider choice – zero switching cost
 More discerning customers
 Dealer Freedom
 Better-quality products
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Consumers take advantage of current quality in product
Threat of substitute products
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Natural gas
Electricity
Ethanol
Vegetable oil
Sunlight
Water
Intensity of Rivalry among
Competitors
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Gas crisis during 1980’s and 90’s
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Foreign Trade increased intensity of rivalry
Export becomes essential to expanding and
competing
Financial Comparision
Price Mkt Cap P/E
F
DCX
GM
HMC
NSANY
TM
Industry
S&P500
16.21
35.4
41.84
73.87
9.01
49.32
29.4b
35.5b
23.01b
35.99b
17.9b
91.2b
49.73
NM
28.88
15.45
7.31
17.07
37.31
29.79
P/Sale
s
0.19
0.28
0.14
0.64
0.4
0.88
0.27
3.68
ROE
4.08%
-4.47%
2.61%
12.05%
43.51%
9.69%
0.93%
17.73%
Financial Comparison
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Highlights
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Strengths
Weaknesses
General Environment
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Demographic Segment
Population
 Age
 Internet
 Income Distribution
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Sociocultural Segment
Jobs
 Women in the Workforce
 Consumers
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Technological Segment
Environment
 Aluminum
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Global Segment
Economic Segment
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Very International, with the main places being
United States, Europe, and Japan
Historically auto stocks move with direction of
North American sales cycle
Until September U.S. retail car and light truck
sales declined in nine of last ten months.
U.S. Economy
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Struggling in recent months
Going to have to spend its way out of sharp
downturn
Congress considering temporary tax rebates and
accelerate planned permanent cuts
Japan
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Verging on deep recession
Predict tax revenue shortfall of $1.1 trillion yen
this year.
Livestock industry seeking $104 b yen in aid for
losses from Mad Cow in September
Germany
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Economic growth increase moderately
Inflation will fall
Overspending on health and sharp economic
slowdown raise deficit
Political/Legal Segment
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Global Agreement on Vehicle Regulations
Trade barriers
General Motors
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Claim to be the pacesetter for the automotive
industry
Has the largest share of the world’s vehicle
market at 15.1%
Offer a variety of services including GMAC
Strive for technological innovations such as the
Onstar system
Ford
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Passion for better ideas
Pushing the limits of technology and design
Striving to make the world a better place
Concerned with environment and developing
more efficient automobiles
Built Ford tough
Daimler Chrysler
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Striving to become the number one automobile
manufacturer in the world
Formed various partnerships to enhance access
to various global markets
Premium priced product
Leader in innovative designs and styles
Honda
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Manufacturers of a wide range of products
Industry leader in fuel-efficiency and low
emission technology
Maintains values of a small company despite
competing in a global market
Nissan
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Slogan of “thinking ahead”
Offer a sport edition for every model of car
they produce
Development of ecologically minded
transportation
Believe that design is the most vital contact they
have with their customers
Toyota
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Slogan is “get the feeling”
Devoted to the customer and excel in customer
service
Local outreach programs
High standards for dependability