Porter's five forces can be used to analyze competition in the auto industry by examining the following aspects: 1) Competitive rivalry: This looks at the number and capability of competitors in the market. Many competitors offering undifferentiated products will reduce market attractiveness. 2) Threat of new entrants: The easier it is for new companies to enter the industry, the more an established company's position could be significantly weakened. 3) Bargaining power of suppliers: This force analyzes how easy it is for suppliers to drive up prices. 4) Bargaining power of customers: This force looks at the power of consumers to put the firm under pressure and it also affects the customer's sensitivity to price changes. 5) Threat of substitute products: The availability of a product that the consumer can purchase instead of the industry’s product can reduce the attractiveness of the sector.
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