Application of Porter's Five Forces Model To The U.S Auto Industry, economics homework help

Complete your Research Project 2 in a Word document, APA formatted, and then submit it in the Assignment section of the classroom by midnight, EST, Day 7.The instructions concerning this assignment as well as the grading rubric are reproduced below.In 2009 the American auto industry was in a dire economic state. Chrysler was in Chapter 11, GM was on the brink of bankruptcy, and Ford’s future was at best uncertain. The demise of the U.S. auto industry would have a devastating impact on our national economy and specifically the economies of Michigan and Ohio.Economists occasionally use Porter's five forces framework when making a qualitative evaluation of a firm's strategic position. According to Porter, his model should be used at the industry level, defined as a marketplace in which similar or closely related products or services are marketed. This research paper requires the application of Porter’s Five Forces Model to the auto industry.Porter's analytical framework consists of those forces that affect a producer’s ability to serve its customers and make a profit. A change in any of these five forces requires a re-assessment of the marketplace. The five forces include:1) The threat of substitute products: The existence of close substitute products (i.e., high elasticity of demand) increases the propensity of customers to switch to alternatives in response to price increases.2) The threat of the entry of new competitors: Unless there are significant barriers to entry, profitable markets that yield high returns will attract firms (i.e., perfect competition), effectively decreasing profitability.3) The intensity of competitive rivalry: As in the case of oligopoly markets, rivals may choose to compete aggressively, non-aggressively or in non-price dimensions.4) The bargaining power of customers: The ability of customers to put the firm under pressure due to availability of existing substitute products, buyer price sensitivity, uniqueness of the products, etc.5) The bargaining power of suppliers: The cost of factors of production (e.g. labor, raw materials, components, and services such as expertise) provided by suppliers can have a significant impact on a company's profitability. As such suppliers may refuse to work with the firm or charge excessively high prices for unique resources.ReferencesPorter, M.E. (1979) "How competitive forces shape strategy", Harvard Business Review, March/April 1979.Porter, M.E. (1980) "Competitive Strategy", The Free Press, New York, 1980.Porter, M.E. (1985) "Competitive Advantage", The Free Press, New York, 1985.Develop a detailed paper applying Porter’s Five Forces Model to the American automotive industry.Your paper needs to include at least three scholarly sources, i.e. peer reviewed articles. I strongly recommend the use of the APUS library for these sources, as most acceptable resources can only be found in protected databases.Your paper should be between 1750 and 2500 words, in APA format and structured as follows:1. Cover page with a running head2. Abstract3. Introduction to the Auto Industry3.1. Industry Definition3.2. Industry Profile3.3. Industry Structure3.4. Future Outlook4. Porter's Five Forces Strategy Analysis as it applies to the Auto Industry4.1. Bargaining Power of Buyers4.2. Bargaining Power of Suppliers4.3. Competitive Rivalry in the Industry4.4. Threat of New Entrants4.5. Threat of Substitutes5. Conclusion6. ReferencesECON 600 Research Project 2 RubricCriterionUnsatisfactorySatisfactoryExceptionalScore15%Identification of auto IndustryDid not fully identify the auto industry structure.0-5Identified the auto industry structure correctly.6-10In addition to meeting the requirements of satisfactory, provided an analysis of market structure requirements including number of firms, uniformity of products, ease of entry and exit.11-1515%Identification of Porter’s Five ForcesDid not identify all five forces.0-5Identified all five forces.6-10In addition to identifying all five forces provided the detail for relating them to the requirement of market structure.11-1525%Identification of Application of Porter’s Five Forces to auto industryDid not clearly identify an appropriate application of each concept identified in the scenario.0-10Clearly identified an appropriate application of each concept identified in the scenario.11-19In addition to meeting the requirements of satisfactory, for each concept identified, defined at least one future opportunity.20-2510%Demonstrate Critical Thought in Analyzing InformationDoes not demonstrate critical thought in the analysis of the information, or analysis is disjoint0-4Demonstrates critical thought in analyzing the information by presenting various perspectives on the concepts5-8In addition to meeting requirements of satisfactory, synthesizes information across concepts effectively.9-1015%Demonstrate Quality and Effectiveness in Written CommunicationWritten communication is ineffective, with numerous spelling and grammatical errors or poorly constructed sentences.0-4Written communication is effective.5-9In addition to meeting the requirements of satisfactory, the paper is engaging to the reader with concise and clear communication.10-1510%Adhere to APA Writing Style RequirementsNumerous errors in format, style, or reference citation0-3Few errors in format, style, or reference citation.4-7Virtually no errors in format, style, or reference citation.8-1010%Length RequirementOutside of specified range by more than 10%. 1-4Outside of specified range by 10% or less.5Within specified range.10Turnitin PercentageConformity Percentage greater than 35%, excluding bibliography.Grade discounted up to 50%.Conformity Percentage between 20% and 35%, excluding bibliography.Grade discounted up to 30%.Conformity Percentage smaller than 20%, excluding bibliography. Perfect.