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Automobile Industry In Uk Essay

987 words - 4 pages

The automobile Industry in UK is best known for cars like Aston Martin, Bentley, Daimler, Jaguar, Land Rover, MG, Mini, Morgan and Rolls-Royce. The Volume car manufacturers with a major presence in the UK include Honda, Nissan and Toyota .
The history of UK automobile industry dates back to the 19th century. By the 1950s the UK was the second-largest manufacturer of cars in the world (after the United States) and the largest exporter. However, in subsequent decades the industry experienced considerably lower growth than competitor nations such as France, Germany and Japan. Many British Car Companies have been acquired by foreign companies including ...view middle of the document...

* Having a strong supply chain management.
* The low cost of its competitors.
* Over dependence on US and Europe Markets.
* The increasing demand and popularity in the developing countries.
* Advanced use of technology.
* Flexibility in development and manufacturing.
* The Economic downturn.
* Increasing Fuel cost.
* Emergence of new entrants.
* Increasing Raw Material costs.
PESTEL ANALYSIS: PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal analysis of macro environment of the organisation.
Political: The Laws and Regulations of the ruling government always impact any Industry. The laws basically hover around the environment norms which the Industry is expected to comply with. The taxes and the Foreign Policy also decide the success of the Industry in the Global Markets.
Economic: The economic meltdown globally, and the increasing cost of Raw material has impacted the Industry as a whole. It has impacted the profit margins of the Industry.
Social: Social factors include the changes in cultures and demo graphics globally apart from change in buying pattern and capacity of the consumer .There has been a drastic change in the buying pattern of the consumers due to recession in the mature markets. The consumers are looking for fuel efficient, low emission vehicles.
Technological: Use of new and sophisticated designs to improve the margins in the Industry .Modification or restriction in technology causing Environment pollution.
Environmental: Increased awareness among consumers regarding greenhouse effect, global warming has resulted in shift from consumer preference to fuel efficient, low emission vehicles. Strict adherence of EURO norms to curb pollution in developing countries.
Legal : Restriction and strict pollution norms.


Bargaining Power of Buyers: At the present time, the automobile buyers have the negotiating power. Buyers know how much the automakers want to keep the sales up in tough time .Therefore; can negotiate a better price and terms of payment. They are in position to get the latest model at the price of...

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