Threat of new entrances
One of the barriers is that the market is very competitive so if you want to enter on theautomobile market you must bring new added value because there is a vast range of types of vehicles. Furthermore, the costs of installation are high because they need tohave their own dealers and plants. The transport from plants to dealers is another cost which can represent a barrier. Also the norms of security are different in somecountries and that implies companies have to invest to match the norms.
Determinants of buyers power
The buyers’ power is high because consumers have a largerange of choice when they want to select a car to purchase.
Determinants power of suppliers
The suppliers’ power is weak because they are linked to theautomobile companies who work in just-in-time so they are subjected to the automobile companies. Also they are implanted nearly of it.
Threat of Substitute productsPeople have a substitute product, this is the public transportation. For many people this kind of transportation is more efficient because sometimes the cost of one routewith public transportation is less than a route with a car. Also a car represents a constraint, for example, you must find a car park to put your car in large towns.Rivalry among existing firm
The automobile market is one of the most competitive markets in the world, in addition, there are many companies try to reducetheir costs by moving to low cost countries such as Eastern Europe and Asia countries, and try to find new market, so the competitive rivalry is high in the long run.