Analysis of the Relationship between Sales and Promotions in the Automotive Industry based on the Porter's Five Forces Model

Abstract

Increasing sales in the automotive industry is one of the most important issues that many companies are working on today. Many people believe that promotions can have a great impact, however, there is still a lack of uniform interpretation of the impact of promotions on sales in the automotive industry, as a sequence this paper would like to use the Porter's Five Forces Model to further analyze the relationship between the two, through the analysis of the impact of each of the five aspects. The research found that promotion can increase sales, in competitive rivalry by which it can reflect the advantage, but for the reduction of the bargaining power of the supplier's impact is very small and even bring more pressure to the enterprise. However, for the three aspects of the Porter's Five Forces Model, all of them play a positive role, as a result promotion is a very good method for increasing sales.