The supplier power in the industry is considered to be moderate as the companies try to maintain a very low level of reliance of the suppliers on the industry. Companies like Honda and Toyota manage their portfolio in such a manner that no supplier has more than 5 percent pf the purchases.
There is not ease of entry into the automobile industry as the level of technology, skilled human resource and capital investment required to enter the market is very high. Moreover large barriers have been set by the current players in the global automobile market to prevent new automobile manufactures from entering then market. These protectionism strategies being used by the companies include copyrights, patents and licenses for the technology being used for manufacturing motor vehicles. Aside from this the government has also issues laws which relate to regulation of emissions, controls in terms of service quality and product standards as well as specification of vehicles and engine application in geographic regions which adds further barriers to entry for new market entrants.
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