Question 1: Using Porter's five forces and PEST framework analyze the main forces that have an impact on profitability in the electric car industry Porter's Five Forces Threat of New Entrants: The threat of new entrants in the electric car industry is moderate. This is because there is a great compromise between the cost and performance of electric vehicles. For instance, major manufacturers such as BMW, Toyota, Ford, and General motors have all produced electric cars whose cost cheap, but their performance is very low. A fully electric car with advanced qualities such as long mirage and high speed is not easy to make. Therefore, any potential new entrant will face these challenges because even the established manufacturers are yet to find solutions to the obstacles. Moreover, new entrants will be overwhelmed unless they find innovative solutions. Those well established in the market, such as Tesla, enjoy the benefit from economies of scale which the new entrants will not match. Bargaining Power of Buyers: This is a strong force for the electric vehicles industry. The main reason is because there are no significant costs for switching from one brand to another. Due to this absence of costs, the bargaining power of the buyer increases considerably. Another issue is price sensitivity which affects the purchase intention. Currently, electric cars are relatively expensive compared to their fuel-based counterparts. Other factors that contribute to the bargaining power include the ability to go for substitutes and the level of product differentiation among the various manufacturers. Rivalry among Existing Firms: This factor in Porter's Five Forces is very intensive because of the competition that exists among the various brands. For instance, Mercedes-Benz, Nissan, Jaguar, Porsche, Volkswagen, BMW, and GM have all committed funds to the