british automobile industry

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British Automobile Industry

Presented By-

Group-IIDavid Ong

Eunice Yun li

Hitesh Aggarwal

Luke Wilson

Sanjeev Agarwal

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Contents

Introduction

Market Status

Porter’s 5-Forces

Company Analysis

Conclusions

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What do you guys think of when you think ‘British Cars‘?

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Aston Martin

Aston Martin was founded in 1913 by Lionel Martin and Robert Bamford.

They produced their first car in 1915 but production could not start because of the outbreak of World War 1

After World War 1 the company was refunded and started producing cars, competing in races and breaking world speed records.

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Jaguar

Luxury and executive motor cars Headquaters in Coventry, England and now

operated as part of the Jaguar Land Rover business owned by Tata Motors of india.

History: It was founded by Sir William Lyons in 1922 and was named the Swallow Sidecar Company, making motorcycle side cars before switching to passenger cars.

The Name was changed to Jaguar after world war 2 due to unfavorable connotations of the SS initials.

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Jaguar hits it Big!

Jaguar really made its name in the 1950‘s with a series of elegantly-styled sports cars and luxury saloons.

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Lotus

Lotus Cars is a British manufacturer. It is currently owned by Proton. (a malaysian

car maker) Company was formed in 1952 by Colin

Chapman

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Bentley

Bentley is a british manufacturer of automobiles and was founded on 18 January 1919 by Walter Owen Bentley.

Master Walter Owen Bentley was well known for his range of rotary aero-engines in World War 1.

Since 1998, the company has been owned by Volkwagen Group of Germany.

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Profit Sales Market Shares

British Automobile Market

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Profit

£45,900,000,000.00

£55,500,000,000.00

£0.00

£20,000,000,000.00

£40,000,000,000.00

£60,000,000,000.00

2007 2008

Underlying profit, cash performance and order book

Underlying profit, cashperformance and orderbook

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Sales

Sales

£7,435,000,000,000

£9,082,000,000,000

£0

£2,000,000,000,000

£4,000,000,000,000

£6,000,000,000,000

£8,000,000,000,000

£10,000,000,000,000

2007 2008

Sales

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Sales Profit

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Sales

Sales of Bentley

2003, 1000

2004, 65002005, 8500 2006, 9000 2007, 10014

0

5000

10000

15000

Sales of Bentley

Sales of Bentley 1000 6500 8500 9000 10014

2003 2004 2005 2006 2007

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Increase in Sales

17% in UK 4% in North America 7% in Europe 18% in Asia pacific 93% in China

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Profit

2007, Lotus lost 4.88 million ponds 2008, Lotus’ profit is 2 million ponds

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British Car Market

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UK Motor Vehicle Production Cars and Commercial vehicles (1,000 units)

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The Current Status

UK produced 1,649,515 vehicles in 2008 12th of global output league 2.4% of global output in 2008, 8.8% of Europe,

down from 9.6% in 2000

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Economic contribution

12% of UK manufactured exports, 77% of the cars and 61% of the commercial vehicles were exported.

10.2 billion ponds value added in 2007. 5.9% UK manufacturing employment

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Porter’s 5 Forces

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Threat of New Entrants

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Power of Suppliers

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Power of Buyers

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Threats From Substitutes

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Internal Competition

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DB9

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V12 Vantage

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DBS

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Aston Martin

Vision To design sports cars that have a distinctive

and individual character, building it to the highest standard. Making exhilarating cars to drive and to own.

Common Goal and Spirit To build the most prestigious sports car

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Aston Martin Awards

Concorso d’Eleganza Design Award, 2009

Super brands – Coolest Brand in Britain 2008,2007,2006

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Aston Martin

Tailor-made, superlative standards of workmanship

Highly skilled workforce of 1800 employees together with the most advanced facilities

Only 16,000 cars produced within 96 years

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Aston Martin Dealership

Wide and fast expanding global dealership network

126 dealers in 27 countries

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Aston Martin in Movies

Long association between Aston Martin and James Bond which began on screen with the silver DB5

Featured its cars in very few other films, such as the Persuaders and The Italian Job

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Aston Martin Racing

Large presence in Motorsports Possess champion race teams that participate

in GT Championships in Britain, Belgium, Europe, America, Australia…

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SWOT Analysis

Strengths

• Well established

• Iconic branding

• Forefront of super car design and innovation

Weaknesses

• Very small market

• Reduced spending during financial crisis

Opportunities

• Expanding high-class markets in Asia

Threats

• Faces strong competitors like Ferrari, Porsche and Lamborghini

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Conclusions

Dependence on inward Investors

Saturated marketLow level of R&D

Reduced labor productivity

Non-existence of a ‘British car industry’!

Loss in scale(Mirror Image of what it used to be)

The Story Today

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Recommendations

1

Investments in R&D and developing new product lines subject to the money available with them

2

Exploring new markets like the emerging economies in Asia and reduce focus on exports to saturated markets

3

1. Improve inward investment opportunities

2. Strengthen credibility & certainty

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谢谢 !Dhanyava!

Danke!