Explain how the two industries are similar and different based on your Porter$$s Five Forces analyses. Porter$$s Five Forces

New Industry

Automotive Manufacturing Industry

Rivalry Among Existing Competitors

The rivalry among existing competitors in the new industry of electric vehicles is high and rapidly evolving.

High because there are many businesses that sell engines to the car manufacturing sector, making the automotive industry quite competitive.

Threats of New Entrants to the Market

The threats of new entrants in the new EV industry are medium. Due to potential price wars, increased competition, and increased customer switching costs.

High because there are many businesses that sell engines to the car manufacturing sector, making the automotive industry quite competitive.

Bargaining Power of Suppliers

Relatively high because the suppliers provide critical components that are essential to the production process, and there are no alternative sources of supply available.

High because it impacts the cost and ease of obtaining raw materials for automotive manufacturing significantly.

Threat of Substitute Products

The threat of substitute products is relatively high in the automobile industry due to the existence of several alternative modes of transportation.

Low because it's uncertain if producing these potential rival goods would be less expensive than producing the industry's current offerings.

Bargaining Power of Buyers

Moderate, because some large and important suppliers having significant power, while smaller and newer suppliers may have less power.

Medium because customers may not have much authority to independently negotiate reduced pricing if there aren't many of them.