Application of Porter's Five Force Strategy to the U.S. Auto Industry

The Auto industry in the U. S. has been a symbol of the strength and innovation of the American economy for over a century. In analyzing the competitive environment of this industry, this article adopts Porter’s Five Forces framework to enrich its analysis. Thus, the analysis is useful because it defines the industry, looks at the market structure, and considers the industry’s possibl development. These include buyer power, supplier power, competition intensity, new entrants’ threats, and substitute threats. This integrated research paper in its examination points out the key strategic issues and prospects of the US auto industry, including shifting consumer demands and innovative solutions. This research gives a deep analysis of the forces influencing the industry and guides stakeholders on the direction to take.