Porter's Five Forces Analysis - China

Porter's Five Forces evaluates the competitiveness and attractiveness of a given industry in a certain market. China is an interesting market to analyze for any industry, especially the automobile industry. China is experiencing tremendous growth, and in 2009 more cars were sold in China than in the US.

To see a P5F analysis of the auto industry in the US, click here.

Like many of the massive financial institutions in the US that collapsed in the Fall of 2008, General Motors is said to be "too big to fail". However, declining sales and profits have lead to talk of the US government bailing out General Motors. This is in addition the the colossal $25 billion loan the US Congress gave the Big Three, GM, Chrysler, and Ford. Now, the Big Three are asking for $50 billion.

The automotive industry is experiencing significant economic shocks from the recent financial crisis. This is especially true in the US with the Big Three. A declining quality of American cars coupled with a lack of credit in the US put considerable drag on the car industry.