Bargaining Power of Supplier – Low

Bargaining power of Supplier – low

The suppliers of the automobile industry include many segments, for instant, seat, tires and original equipment manufactures. Due to the large number of suppliers industries of automaker exist and compete on a global basis. Automobile industry’s suppliers are more dependent and less powerful in the relationship with automaker. Automobile industry stands on a powerful position.

The competition between suppliers is high, so the automaker can easily to change their suppliers with the high quality one.

And Holden also produces many components by its own vehicle manufacture.

Thus, automobile industry bargaining power of supplier is low. Holden has many choices on deciding which supplier will provide high quality products.

Bargaining power of customer- High

In automobile industry, customers have large bargaining power. There are variable kinds of brands to choose. Customers make purchasing decisions according to the appearance, price, quality and functions. It is nearly impossible for one brand to provide one product, which all customers are satisfied with. Based on different lifestyles, different customers have different preference. Holden Co. must work hard on attracting customers, setting reputation and maintaining customer relationship.

Threat of substitutes:

The train is Australia's most popular public transport. Most of the regions have train stations where the train lines extending in all directions, and through various areas. So even people live in that place far from school or work in long distance place. People also can arrive on time, so long as people live near the train station. Australia's train network has several important transit points, such as the central station, there are dozens