ACCT 356 Assignment 1

Question 3 (30 marks)

Lesson 2, Note 5 presents an interactive tool (http://ath8.fb.athabascau.ca/course/ACCT356/Fig2-1/) that can help you assess the five forces for any industry.Using this tool and Internet research, analyze the five forces in the high-end car manufacturing industry (such as BMW, Mercedes, Infiniti, Porsche, etc.) to identify how each of Porter's Five Forces affects the level of competitive intensity in the industry. If you follow the questions in this interactive tool for each force in your analysis, it will help to direct your discussion and draw conclusions. For any external research, you should provide at least one outside source of information in your analysis.

Required:

a)In paragraph form, describe how each of the five forces impacts the level of competiveness in the high-end car manufacturing industry. (20 marks)

b)Complete the following chart to summarize the strength of each force and provide recommendations to luxury car companies to reduce the effect of the force. (10 marks)

Competitive Strength Suggestions to Help Mitigate Force

Force 1= weak

2= moderately weak

3=moderate

4=moderately strong

5=strong

Threat of New Entrants

Power of Buyers

Power of Suppliers

Power of Substitutes

Internal Rivalry