2- Describe the five forces for the industry that your company operates in and rate each
as High, Medium or Low and explain your choice (perhaps use a 3 column table for
this). Is the industry profitable?
3-What is the competitive strategy that your company follows? How does it address the
threats from the five forces?
4- Describe the primary activities in the company value chain. What are some business
processes? You will select one structured and one dynamic process for your project so
start thinking about which ones to pick
Marketing Strategy
A Toyota and Mazda dealership serving the Green Brook, NJ area is Crystal Mazda. We sell
both new and used vehicles, give a variety of financing and leasing options, perform
mechanical and body repairs, and stock a full line of genuine Toyota and Mazda parts and
accessories. In addition, we provide our clients with a wide variety of discounts and sales.
David Smith, who oversees MIS, has consented to be interviewed. For the past five years, he
has been putting in time at Crystal Mazda. David oversees all aspects of IT for the business,
from developing strategies for implementing new information systems and technologies to
ensuring the optimal performance of existing infrastructure.
The auto industry is one that Crystal Mazda services. There are a lot of firms contending in a
market that is both highly innovative and strictly regulated. In my opinion, these are the top
five forces influencing the auto business today:
Strong Sense of Rivalry
The automotive industry features high levels of competitive rivalry because of the large
number of rivals and the presence of a small number of dominant actors. If a company wants
to increase its share of the market, it must find methods to differentiate itself from rivals
through the introduction of novel products and services.
Strong Ability to Buy
Customers in the car industry are notoriously well-informed and picky. Furthermore, the
business is dominated by a small number of firms. As a result, customers can exert
considerable influence over their service providers and negotiate favorable terms and
conditions.
Supplier Influence: Moderate
Suppliers in the automotive industry have relatively little influence over their individual
markets due to the abundance of suppliers and the adaptability of most buyers in the industry.
As a consequence, sellers can't bully buyers into accepting their terms of service in terms of
price and other factors.
Medium Risk of Substitution
The auto business is not at great risk of being disrupted by other industries because there are
no direct substitutes for cars. Consequently, customers are hampered in their ability to make
well-informed purchases.
Competitor Threat Level: Low
Since the automotive industry is highly regulated and has high initial entry expenses, there is
little competition from new entrants. The expenses make it difficult for new entrants to the
market to establish themselves and fight effectively. The car industry is highly innovative and
competitive. Crystal Mazda's strategy to remain head and shoulders above rivals is to provide
customers with nothing but the best. To maintain a competitive advantage, the company has
poured resources into developing innovative technologies through extensive R&D. This
approach helps the company avoid falling behind the competition and provides a means of
setting itself apart from the crowd while also mitigating the effects of the five trends that
threaten the car industry.
Design and engineering, production, marketing and sales, after-sale support, and supply chain
management are the cornerstones of any successful business. These activities depend on
business procedures like product design and engineering. Information about customers,
inventory, production schedules, and marketing initiatives are just some of the many
company operations made easier by these systems.
To stay ahead of the competition, Crystal Mazda has implemented several novel technologies.
The business will be able to standardize its processes and provide superior support to its
customers thanks to these tools. The incorporation of high technologies is also being
considered by the company as a means to further improve operations and gain a competitive
edge.
Conclusion
Crystal Mazda has a well-thought-out strategy to continue its reign atop the ever-changing
and cutthroat automobile market. By implementing the aforementioned measures, Crystal
Mazda is able to respond to shifts in the market, differentiate itself from the competition, and
lessen the impact of the aforementioned five competing factors.