Porter’s 5 Forces

For those of you that have followed us over the years, particularly the last couple of years, you’ve heard us discuss our opinion about a structural shift in the auto industry that is occurring. Essentially, we think the concentrated vendor base (that once exerted a significant influence over a fragmented distribution base) is now reversing, with the vendor base (due to foreign competition) fragmenting, while the distribution base is consolidating. In our opinion, because the business is highly people intensive, the product is a “big” ticket where emotions often play a bigger factor than price, and stat ...