Generally, big companies advance their knowledge of market, stay close to their customers, and prefer to develop existing technology gradually. Nevertheless, they experience difficulties with capitalizing on the potential efficiency, cost-savings, or new marketing opportunities created by low-margin disruptive technologies. Therefore, by doing so, companies provide an opportunity to “disruptive innovations” at the bottom of the market (Danneels 2004). It allows a whole new population of consumers at the bottom of a market access to a product or service that was historically only accessible to consumers with a lot of money or a lot of skill. Generally, products based on disruptive technologies are typically cheaper, simpler, smaller, and, frequently, more convenient to use (Yu& Hang 2008).
This industry also needs a very huge investment in Research and Development (R&D) so that the company could develop new innovative products at lower and competitive prices to survive in the market. Nowadays the industry puts more emphasis on the prices because now the customers have become more price sensitive. So Dell has advantage in this area as Dell has lower prices and is among the few companies that dominate the computer hardware industry but the new entrants will have a higher price and they will not have a technologically innovative product. Dell is already a brand and any new company will have to first deal with brand loyal customers so they will have also work heavily on their advertising and marketing. Therefore it is not very easy for a new company to enter into this industry; therefore Dell is having advantage here.
Numerous went out and bought a hybrid car because of the car’s fuel mileage in the hopes of saving money. The hybrid car proved itself to be worth the investment. A worthy investment in a car is based on a couple factors. The price that a car is purchased at is extremely important. The purchase price of a car can vary, depending on a magnitude of factors.
Some countries have imposed a luxury-tax on cars valued over a certain amount. Some countries also have a tax on imported cars, which main purpose is often to protect own industries. This creates a significant barrier to the industry as more governments are reducing taxes for environmentally friendly vehicles, which is a major competitor to the industry. Competitive Globalisation Drivers The main components in this category include: • High level of exports and imports • Competitors from other countries • Transferrable competitive advantage • The interdependence of countries Luxury-car manufacturers are constantly attempting to reinvent and diversify themselves in order to remain competitive in the market place. They are also often setting up manufacturing sites different from assembly sites in order to more easily access different markets and more cost-effectively distribute their products.
The bargaining power of the suppliers in the luxury industry is moderate. Even though these companies have economies of scale emanating from their global operations, most of them use the focused differentiation strategy on the basis of quality. This gives their suppliers some leverage over them because finding suppliers of premium materials in the quantities which these companies procure is not easy. Noteworthy, these companies must consider the time they spend in building their relationships with their suppliers. The bargaining power of the buyers is also moderate.
This availability of multiple brands and many models increases the choice available to the consumer but also makes the decision process more complex. Brands also have a symbolic value which helps the people to choose the best product according to their need and satisfaction. Usually people do not buy certain brands just for design and requirement, but also in an attempt to enhance their self-esteem in the society. Brands play a very important role in the consumer decision making processes. It is really important for companies to find out customer’s decision making process and identify the conditions, which customers apply while making decision (Cravens and piercy, 2003).
Hybrid motor vehicle, technology trends in the automotive industry Introduction to Hybrid Car Technology One of the fastest growing markets with regard to automotive industry is the advent of hybrid car technology. The reason for the increased interest in this market, is the cost of running fuelled driven automotive. This makes consumers constantly looking for cheaper running alternatives. Over the past decade automotive firms across the world have invested large amount of time and money into the development of more fuel-efficient hybrid cars. When addressing our research problem of how automotive companies use IT trends in gaining a bigger market share in the industry; one of the answers could be to invest in new technology, such as hybrid motor vehicles.
This is key to any firm. As mentioned in the essay, one of the reasons customer-centric firms successful is because they cater to the demands of customers. They prioritise what matters. They do not need to subsidise their products in order to boost sales in comparison to a product-centric firm who may need to introduce a sale in order to shift their goods. Customer trust and loyalty gained through the market structure reduces the marketing costs of such firm.
Because of the geographical distance, the competition is not so high. Threat of new entrants and substitutes: For starting such super store, it does not require a huge capital but needs a skilled and efficient management team. So, there is big treat of new entrants and substitutes. Bargaining power of buyers: Today, buyer exercises high power in case of every product in the competitive markets. So, the products of Agora have a number of alternatives in the markets.
They are Hyundai Motor 's "Santro", Daewoo Motors "Matiz" and Fiat India "Uno". There was an impact on value affectability as individuals are prepared to pay more for fuel proficient autos. • In request to concentrate on the universal auto market they have to have world class principles. They ought to be sufficiently capable like dealing with the inventory network so that they could incorporate items and administrations both upstream and downstream They ought to be capable deal with their partnerships in a fitting manner to broaden their business sector all inclusive without much utilizing its assets. • The most difficult part is uniting the segments and incorporating it with the assembling operations since the vast majority of the automakers are getting rid of their business of gathering