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The Global Car Industry - an Analysis of Macro Environment, from the Case Study by Nick Potter
As far as mobility barriers are concerned, it may consist of reputation, product range and brand perception between these two segmentations. To extend this in detail, if Fiat tries to enter the strategic group of GM, it would need to improve its reputation for quality, service and reliability by enhancing its manufacturing skills. This is essential since it currently the lacks of manufacturing skills which has tampered its reputation on these aspects. In addition, it will need to position itself differently by creating some product differential to a certain extent. Another barrier for Fiat is distribution, for it mainly focuses on domestic market. If it wants to move to segment 5, it may develop its distribution channel to expand its business outside of domestic market, which could help improve its brand perception to medium level.
An analysis of the macro environment of the global car industry poses many challenges. Hence, a segment wise analysis helps to understand the nature and impact of the various forces. The industry is a major contributor to any country's economic activity. The analysis reveals that the most important forces impacting the industry are technological and political. Hence, it is necessary to take the effects of these two forces into consideration, while formulating any strategy in this industry.
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