SWOT Anaysis Reading 7

The US Auto Industry Environment : A SWOT Analysis

Strengths

a ) The US automobile industry includes the largest automakers in the world : General Motors Company as the largest and Ford Motor Company as the second largest (Davis , Kim , King , Larson , Redmond Schick , 2008 Other than having the world 's largest industry players , the US automobile industry also has the world 's pioneering automobile companies . This undoubtedly gives the industry in US an edge over the same industry of other countries in terms of world market leadership and model designs

b ) Being

among the battered industries , the US automobile industry has been rescued by the government with its bailout package . This move serves to show the government support that the industry enjoys as well as the industry 's material role in the country 's economy . Indeed , the US automobile industry has become a mammoth industry that the government cannot allow to fail . Having enjoyed many years of economic growth and profitable operations , the industry players have become major contributors to the country 's national product , exports and employment rate

Weaknesses

a ) However , the same bailout package brings in consequences that would serve to limit the freedom of the automakers . Hence , they would not anymore be free to launch new ventures or new products without government approval , which may take time to secure . Needless to say the procedures and policies that bailout beneficiaries are now subject to would have a toll on its operations

b ) High fixed cost...