Luxury Car Market

The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.

Even today Henry Ford’s strategies and beliefs are being reflected in the Ford’s corporate strategies. Main feature of all Ford’s brands is their reliability, high quality and innovativeness. After BMW, Ford is considered to be a renowned brand whose focus is on innovation and creativity. Along with cars its effort towards social responsibility also plays an important role in

The Chevy which is a colloquial term for Chevrolet is a division of general motors (GM) that are American manufacturers of vehicles. The Chevrolet motor car company was founded by Louis Chevrolet and William Durant. Mr. Durant used this car and acquired a stake that controlled General Motors after which there was a reverse merger. The Chevy vehicles are distributed in most markets globally carrying the maxim ‘A car for every purse.’ The essay below stipulates strategies that the Chevy upholds in the different markets in which their motor vehicles are sold (McDonald, 2002).

This paper will cover the comparison of two cars manufactured by two heavy weight American car companies. Based on the research that was done, it determined that the Ford Mustang wins in two of the three categories in which it was judged. This comparison will cover three separate categories: sales, performance, and pop culture. This has been a debate for over fifty years and will continue to be for the foreseeable future. Even after these two companies disappear there will still be debate on which is greater. All citations are from the manufacturer’s official page, major automotive magazines, and performance branches of each vehicle. I will not be including aftermarket vehicles designed outside of the company. Due to the subjective

Given the current economic climate, I think the automotive industry is going to be faced with a multitude of economic challenges in the next five years. As an oligopoly market, the auto industry is highly dependent on strategic decision-making, and the demand for dynamic innovation and supply at decreased-cost levels. Competition, possibilities of turning substitutes into compliments, and shifts toward higher demand in services are seemingly leading factors that face the current automotive industry in the immediate future. But first, we should not ignore the political forces at play within the market.

When this brand reputation is combined with low priced cars, the sales revenues of Ford are likely to increase. The new cars should be fuel efficient. There should be cost savings for the customer both when the cars are purchased and when the cars are used.

Cars have always been a big deal in the United States. Ever since Henry Ford invented his Model T in 1908, the automobile industry in the United Sates has continued to grow (“Henry Ford Changes the World,” 2005). While Ford was not the original inventor the automobile, he created the first automobiles that were affordable, easy to drive and maintain, which made it possible for everyday people to own cars. Ford’s assembly line building technique became the benchmark for all the big auto manufactures of that day (“Henry Ford Changes the World,” 2005). Ford, General Motors, and Chrysler soon became known as the “Big Three” American automobile companies (Foner & Garraty, 1991). While the automobile industry has immensely grown and changed from the early 1900’s to now, it continues to be at the forefront of industries creating environmental concerns worldwide. Issues currently being faced by the American Auto Industry include: having to handle tough global competition by foreign automakers, figuring out how to incorporate new technology to power vehicles (such as electric or ethanol run cars), and having to face new higher government and consumer quality and environmental standards.

The mission at Chrysler is to reduce the environmental footprint, focus on safety and the efficiency of the vehicle, and remain competitive in the industry (Mission, 2014). By utilizing the adhocracy framework, Chrysler is focused on the creation of vehicles that are good for the environment. Chrysler also relies on innovation to keep up with the changing safety regulations as well as making new smaller vehicles to meet consumer demands. In order for Mr. Marchionne to have a sustaining competitive edge he also has to look at the market framework to gauge the demands of their customers (Kreitner & Kinicki, 2013). With gas prices on the rise, Mr. Marchionne has to remain competitive by building smaller fuel efficient vehicle (Muller,

The United States Automotive industry has been dominated by five major auto manufacturers: GM, Toyota, Ford, Chrysler, and Honda. As globalization increases the domestic automotive market (GM, Ford, Chrysler) suffers from foreign competitors. Although with high entrance barriers the market suffers little to none from new entries. There are several reasons for this the largest being capital. It takes a lot of capital to obtain manufacturing plants, raw materials, as well as to hire and train employees. PASTEL Analysis

A thorough analysis of the external forces that shaped the global automotive industry in 2009 reveals how the rivalry between established car makers set the stage for some to successfully survive the global recession while others were forced to seek Chapter 11 bankruptcy. A closer consideration of the impact of consolidation, demand and supply, fixed costs, product differentiation, and exit barriers on rivalry within the industry reveals how new entrants and weaker competitors were able to take advantage of environmental opportunities during the recession and gain profit shares. These considerations illustrate the critical importance of analyzing the forces that shape competition in an industry and how such an analysis serves as the

Ford Motor company is one of the world's largest manufacturers of automobiles. Under the leadership of Henry ford, the company implemented the assembly line method of mass production and made the cars affordable for middle-class consumers. Ford Services, however, is Ford’s branch of Auto Service and repairs. Similarly to other companies, Ford Services, is involved in advertisements in an attempt to promote the strength of their tires and services. In one of their advertisements, they use fantasy, detailed graphics, bold texts, and the appeal to younger of audiences to show how powerful their tires can be.

One of the best ways of improving corporate image in the automobile industry is by ensuring that the industry satisfy the needs of consumers. These needs would include the utility derived from their product, the safety assurance of the brands and the overall best performance in the lifetime assessment as for the environmental effects. There is a global concern over the carbon dioxide emission in the Automobile industry and the consumers are now given a chance to adopt a lifestyle that is caring to the environment. The electric and Hybrid brands have promised to revolutionize and rival the traditional cars in their economy on fuel and their friendliness to the

In addition to their green initiatives, Ford is looking at other trends regarding consumer elasticity and behavior towards the automobile market. In addition to dealing with the shift in consumer short-term behavior (going from “I really want” to “I do not really need”), the automotive industry, along with all others are wondering what the long-term change will be in consumer behavior due to the recent recession. According to Barkley US, there will be significant long-term changes in consumer behavior. Most notably, the changes will be the consumer going back to a basics mentality, the use of technology and green strategy, and women influencing more purchase decisions. The biggest changes will take place in America and parts of Europe, where housing and stock market bubbles have imploded and unemployment has soared. Companies will also need to show they empathize with consumers’ new concerns. “There will need to be a move from passion to compassion in

The potential threat of new entrants is low as it costs high when it comes to producing a high performance car. The barriers to entry present a low threat to Porsche when it comes to a brand that could immediately match and threatens Porsche’s current brand and market share. The lack of research and development, the technology that was hone throughout the years for Porsche and the Brand recognition that was built throughout the years pose as a difficult and near impossible for any new brand to come into the market and have such an impact.

For a new entrant to develop a new product or design, they would have to first acquire the skills and knowledge to produce a good automobile engine. This will be very difficult to achieve as the learning curve to learn and eventually to produce even an existing engine design would be tough, painfully long and costly. Moreover, the existing play in the market would already have a huge advantage over the rest due to ready knowledge, skills and time.