With the transition to sustainable mobility and the increasing electronic content per vehicle, the traditional composition of the automotive industry has a new DNA. Here tech companies or startups with a faster go-to-market strategy and risk-taking ability have forced a rethink! It has resulted in more established players sticking true to their core DNA yet exploring newer avenues for growth. Many have succeeded with this exploration amounting to handsome returns up from nil. Let's take a look at the factors that have influenced competition. Apt to lean on Porter's Five Forces framework known to mankind as a useful tool for understanding industry dynamics.
Threat of new entrants
Arguably, the established brands in the automotive industry have a loyal customer base. This requires new entrants to invest significantly in marketing and promotion to build trust and loyalty. While existing companies often benefit from economies of scale, enjoying cost advantages that new entrants find hard to match. This is also a capital-intensive industry. The automotive industry is known to require substantial capital for Research and Development (R&D) and manufacturing. The high initial investment acts as a barrier for new entrants.
Bargaining Power of Buyers
It is understood that to reduce the power of buyers, companies must focus on higher product differentiation. Made up of unique features, quality, and brand image, it is believed to make customers less price-sensitive. Opening the channels of communication and letting it trickle down means that customers get a sense of empowerment. Empowering consumers with more information can reduce their dependence on a specific supplier, giving them more bargaining power. In the age of Google reviews, transparency and online reviews are known to play a crucial role here.
Bargaining power of suppliers
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
ZF LIFETEC ELECTROMECHANICAL SEAT BELT RETRACTOR
ZF LIFETEC has unveiled its advanced e. Locking seat belt technology. Claimed to be a major innovation in occupant safety tailored for semi-autonomous and future autonomous vehicles.
THE UNION HEALTH MINISTRY IS MONITORING HMPV CIRCULATION
India's ICMR has detected two cases of Human Metapneumovirus (HMPV) in Karnataka through routine respiratory illness surveillance.
EBERSPAECHER'S VISION FOR INDIA'S EVOLVING BUS AND COACH SEGMENT
Eberspaecher's strategy to become a key player in India's HVAC and climate control sector, driven by sustainable solutions is outlined in an exclusive interview with KP Singh, Managing Director of Eberspaecher India, writes Upendra Kasbekar.
INDIA'S MOBILITY LANDSCAPE
J P Nair, Managing Director, VIS Group, shares insights with Richa Tyagi, on the evolution of the TrafficInfraTech Expo, highlighting its role in revolutionising India's mobility landscape.
BRAKE WEAR TESTING: CORRELATION BETWEEN VEHICLE AND DYNAMOMETER TESTING (PART 1 OUT OF 3)
This research focuses on reducing the mileage of open-road brake tests by simulating brake patterns on dynamometers, writes Fabio Squadrani, Senior Manager, Braking Systems in Applus IDIADA.
AUTO GLASS SPECIALIST
Fuyao Group is a specialised glass supplier for the automotive industry. As a major supplier to leading manufacturers, the company is driving new trends in the sector, writes Ashish Bhatia.
BATTERY SWAP INFRASTRUCTURE IN INDIA
As India's EV ecosystem evolves, battery swap infrastructure is emerging as a crucial component for efficient and rapid charging, writes Upendra Kasbekar.
DRIVING INDIA TOWARDS A SAFER AND MORE SUSTAINABLE FUTURE
The Scrappage Policy is a golden opportunity to reshape the future of India's commercial vehicle industry, writes Satyakam Arya Managing Director & CEO, of Daimler India Commercial Vehicles.
THINKING MOBILITY DESIGN
Design Thinking is not new but it's the growing adoption that's encouraging. The World University of Design is a testimony having emerged as India's premier design-focused university, writes Richa Tyagi.
GEN ALPHA IS RETHINKING AUTOMOTIVE
The practical science orientation at schools has helped build a student pool that is more in sync with the real world. The bunch of Gen Alpha is rethinking automotive application, writes Ashish Bhatia.
