Impact of the global economy and technological changes in the autos industry in Michigan
A global economy and technological changes are considered to be the two primary drivers of the competitive landscape that have a considerable impact on the auto industry, for example, in Michigan (Hitt, Ireland, & Hoskisson 8). The Michigan automotive market depends on both, how new technologies are spread and utilized, and how a global economy (services, products, and ideas are spread) are developed. In my opinion, a global economy is a more influential driver of the competitive landscape in the auto industry of Michigan because this type of industry depends on more such factors like tariffs, taxes, and costs necessary for auto usage (a part of a global economy driver) than on the technologies used in production.
Business failure
The main difference between I/O and resource-based models is that the former aims at identifying what is better for the company regarding several outside factors, and the latter focuses on the company’s unique capabilities and resources such as capital equipment, employees’ skills, finances, etc. (Hitt et al. 17). The resource-based model helps the company in the auto industry (e.g. Ford Motor) earn above-average returns better than the I/O model as it promotes the possibility of the following practices: identification of rare capabilities, comparison of the resources, and introduction of a new idea that attracts attention.
Analysis of the social/demographic, technological, economic, environmental/geographic, and political/legal/governmental segments to understand the general environment facing Union Pacific
- Demographic segment: the Union Pacific Railroad is a network that provides Americans of any age and ethnicity with the required services in several cities in Illinois and Louisiana.
- Technological segment: many technologies are used by UP to move trains, e.g. Distributed Power Units are used to operate a train from any of its parts and helps to reduce physical forces.
- Economic segment: in general, the income revenues of the company are about $5,000,000 quarterly. Still, in 2015, UP demonstrates considerable losses in interest rates because of the inabilities to gain control over all its accesses.
- Environmental/geographic segment: UP is going to spread its services around many other states of America.
- Political segment: UP is one of the organizations that violate the Federal Railroad Safety Act some times.
The Five Forces of Competition Model: Ford Motor
New entrants: A car industry requires considerable investments and abilities from new entrants, so, Ford Motor with its world brand name should not be afraid of new entrants due to its reputation.
Competing firms: Its main competitors are General Motors, Toyota, and Chrysler; however, the demand for cars is high, and Ford has all chances to take the leading position in a competition.
Substitute products: Ford Motor products may be substituted by trains, busses, or bicycles as another form of transport only because of the threat of global warming. Still, no real threat exists today.
Power of buyers: The company is affected by inflation and interest rates, still, their power remains to be significant for the industry.
Power of suppliers: This kind of power is not significant because the majority of components and details are produced by the company itself.
Considering all factors, Ford Motor is one of the most attractive representatives in the auto industry.
Identify three brands you believe have the strongest likelihood of remaining a source of advantage in the 21st Century and explain why
In the auto industry, such brands as Toyota, Chrysler, and Ford remain to be the strongest for a long period. They have already created good reputations and take the leading positions on the market today. The main effect of the Internet is the ability to share opinions and organize purchases worldwide using various forums and sites.
Analysis of the internal environment of the Ford Motor Company to determine that company’s strengths and weaknesses
Ford Motor (Michigan) is a company that provides about 200,000 employees with working places. It has good leaders, who demonstrate an excellent leadership style and the ability to follow the company’s slogan “Go Further”. This is the main powerful competitive factor of the company – the ability to identify the needs of customers with perfectly chosen words and explain to the workers how to provide the best services in regards to people’s expectations.
Work Cited
Hitt, Michael, Ireland, Duane, and Hoskisson, Robert. Strategic Management: Concepts and Cases: Competitiveness and Globalization. Mason, OH: South-Western Cengage Learning, 2013. Print.