SWOT Analysis of U.S. Automobile Industry Essay

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The automobile industry is one of the most significant sectors in the United States economy given the role cars and other automobiles play in the nations public transportation system. An important aspect of the U.S. automobile industry is the car services sector, which is crucial in the nation's public transportation. Apart from the role of cars in public transportation, they also act as status symbols for many Americans. The car services sector is affected by some internal and external market factors that affect the profitability and success of the different players in the industry. These factors can be effectively demonstrated through a SWOT analysis of the internal car services market.


The U.S. car services sector is characterized by several strengths that have played a major role in the overall growth and profitability of the overall American automobile industry. One of the strengths of this sector is increased demand for vehicles, especially value for money cars. Customers continue to look for fuel efficient and high mileage vehicles because of the preference for cars for commuting, which in turn increases demand for car services. Secondly, this sector generates economic growth since every car service use ultimately concludes with a financial transaction or other benefits to improve the quality of life (Bhasin, 2016).

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The third strength is that the car services sector is characterized by continuous technological advancement and product innovation to enhance the efficiency of automobiles.


One of the weaknesses of the car services market is the high bargaining power of customers given the shift from demand to supply market in the automobile industry over the last four decades. This significantly high bargaining power of customers is attributable to the intense competition in the car services market because of the long list of alternatives available to customers. The presence of many competitors implies that customers have the power to choose their preferences, which in turn increases their bargaining power. The second weakness of the car services market is controversies relating to technical capabilities of vehicles. In the past few years, vehicles have been characterized by technical dis-functionality and failure to abide by governmental rules relating to manufacturing, which generates numerous controversies. Third, the growth of the car services sector is inhibited by governmental regulations, especially excise duty and fuel prices policies.


Despite the weaknesses, the car services market has numerous opportunities including market expansion because of….....

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Bhasin, H. (2016, December 1). SWOT Analysis of Automobile Industry. Retrieved May 12, 2017, from http://www.marketing91.com/swot-analysis-of-automobile-industry/

Viereckl et al. (2016, September 28). Connected Car Report 2016: Opportunities, Risk, and Turmoil on the Road to Autonomous Vehicles. Retrieved May 12, 2017, from https://www.strategyand.pwc.com/reports/connected-car-2016-study

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