Porteous 5 Forces
Question 1
The auto industry operates in an industry with a lot of service providers. Therefore, it means that there is a lot of competition, and customers have various options for choosing. It is advantageous to the car owners, making it hectic for new ventures like mine to thrive (ONEREN et al., 2017). Therefore, it is evident enough that the market force directing leadership is competition in this industry.
Question 2
The relative position of a company within its industry determines whether a company’s profitability is below or above the average enterprise. A sustainable competitive advantage is the underlying source of above average profitability in the long term. There are two specific competitive advantages that an organization can have: low cost or product differentiation.
An organization aims to be unique in its industry in a differentiating approach along several dimensions commonly appreciated by customers (ONEREN et al., 2017). It selects one or more attributes essential to many buyers in an industry and can only satisfy these requirements.
Differentiation gets honored with a premium price for its uniqueness. I will focus on differentiation and provide a customized exhaust system on the turbocharger and muffler. The two are for increasing engine power and reducing noise, respectively.
Question 3
Secondary data from other sources are available and may have already been used in past research, making more analysis more straightforward. It saves time and is economically viable (Bar et al.,2020). Popular secondary sources of information include censuses, government department information collected, organizational documents and websites, and data collected originally for other research purposes.
For my business, I will use company websites. I will focus on original car manufacturers and garages. The information acquired will use it to approach and appeal to potential customers promising a more improved product in noise and engine power.
References
Bar Zeev, Y., Berg, C., Abroms, L. C., & Levine, H. (2020). IQOS point-of-sale marketing strategies at a time of legislation transition in Israel. European Journal of Public Health, 30(Supplement_5), ckaa165-185.
ÖNEREN, M., ARAR, T., & YURDAKUL, G. (2017). Developing competitive strategies based on SWOT analysis in Porter’s five forces model by DANP. Journal Of Business Research-Turk, 9(2), 511-528.