nd its impact on the Pakistani auto industry expressed. The key success factors that affect industry member's ability to prosper in the marketplace regarding resources, competencies, product attributes etc have been pointed out. In depth analysis of the political, economical, social,technological and legal conditionsof Pakistanwith reference to the automobile industry will help in crafting a better strategy for the expansion.
Automobile demand was strengthened by higher bank financing which shored up car sales despite the increase in prices during the first quarter of FY11.
Chapter 2: Background 背景
This chapter covers the background of the expansion possibilities in the auto industry of Pakistan.
As we are discussing the expansion possibilities; we will first have a look at the current situation of industry; where it is lagging and then what can be done for the future expansion.
DOMINANT ECONOMIC TRAITS IN AUTO INDUSTRY 汽车工业中的主导经济特征
Scope of the Rivalry: Suzuki is the biggest competitor holding 52% of the total market share. Following is Toyota with around 29% and then Honda with 10.4%. Other companies constitute rest of the market share. We can say that Suzuki is leading the industry and does not have a direct rivalry as market niche for Toyota and Honda is different.
Market Size: In 1998 - 500 Million Vehicles on the Road, 49 Million New Registrations.
Number of Competitors: The most dominant of the competitors are Suzuki, Indus motors for Toyota and Honda Atlas for Honda.
Prevalence of Backward Integration: Partially integrated industry.
Entry Barriers: Very High, Experience Curve, sizable economies of scale, brand loyalty, large capital requirements, access to distribution channels.
Exit Barriers: High Fixed Costs, Specialized Plants and machinery to some degree, Shared facilities
Pace of Technology: Obsolescence is not really an issue because of resale value and functionality.
Product and Customer Characteristics: Segmented by Social Status and Value Orientation. Most manufacturers have broad product lines.
DRIVERS OF CHANGE IN THE AUTO-INDUSTRY 汽车工业变化的驱动因素
Driver
Industry Effect
Slow Industry Growth
More Consolidation, Larger firms in better position to reduce costs in production, purchasing, and product development costs
Increasing Globalization
Requires an infrastructure to manufacture and distribute vehicles internationally.
Technological Change
Encouraging more cooperative agreements
Suppliers Larger Role
Suppliers account for 69% of entire value. Working in parallel with suppliers helps to reduce time to market.
Increasing Government Regulation
Concerns regarding safety, emissions, fuel efficiency.
Increasing emphases on reducing Costs
Mature market requires new features, but at the same time manufacturers must be concerned about costs
KEY SUCCESS FACTORS IN AUTO INDUSTRY 汽车产业的关键成功因素
The key success factors of any industry are indicators or milestones that measure your business achievements and help determine how well you are progressing towards your goals and objectives.
Without determining your key success factors, you run the risk of needing to make expensive changes of direction later on as you have not aligned your objectives to the success of your business.
Following are the KSFs
