Macro environment includes a variety of political, social, technological, economic, and demographical components, which have an external impact on businesses. Thus, the main aim of this paper is to explore an article about how rivals factor of the macro environment affects BMW, Toyota Motor Corporation and the whole car manufacturing industry.

The chosen article focuses on rival factor, which is one of the core macro-environmental components. Few days ago, BMW and Toyota Motor Corporation decided to form an alliance to challenge global rivals due to extremely tough competition in the industry (Hetzner, 2012).

The news in this article is relevant to both companies, BMW and Toyota, since they are involved in cooperation with their direct competitors. The agreement might result in successful partnership between the two leading companies. The cars they are going to produce together will have the benefit of reduced weight thanks to BMW. Additionally, Toyota Motor Corporation can offer strong innovations base it has in manufacturing electric cars (Hetzner, 2012). As a result, the car producers can introduce more efficient cars to the market and increase their profits.

Moreover, the collaboration between BMW and Toyota Motor Corporation can be an external threat for other car manufacturers. The companies can improve their positions in the market and outrival other competitors thanks to the deal.

Car manufacturing sector is highly developed and influential. Changes in the segment do not only affect the companies, which participate in it. In fact, they have a large impact on the national economies, international trade, and national income indexes. Hence, the news is essential for the governments of Japan, Germany and other countries, which economies strongly depend on car manufacturing industry. There is a clear possibility of some countries’ national income decrease caused by intensification of German and Japanese car producing. 

Therefore, the information in this article is of a particular interest for car producers and national governments since it can result in market share and income changes. 

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