This is a radically new car and market share approach is valuable even if the effect of seasonal change in volume is ignored for the time being. Each model will react in a unique way to overall market demand depending on the stage of its lifecycle, customer segment, its status in the market and the basic relative success or failure of each segment, model or derivative. Is the economy improving and are we out of recession? What type of car financing is available on the market and at the dealership (Personal Contract Purchase PCP or other) and what is the interest rate for car financing? Good financial deals are a primary factor driving new car sales.
S – Strengths General Motors Company’s strengths include strong brand image, a focus on safety and advanced technology, innovation in automated driving and a strong presence in the global market. GM is recognized worldwide for its major brand vehicles – Chevrolet, Cadillac, GMC and Buick. This diverse portfolio of vehicles appeals to a variety of customers and addresses a wide-range of needs for consumers. GM maintains a strong focus on its customers by investing billions of dollars in research and development. This research deals with vehicle emissions control, fuel economy, alternative fuels, safety and automated driving.
As of 2014, around 260 million vehicles have been registered in the U.S. There is a demand shift from passenger cards to larger vehicles. Sales appear to be solid. The average transaction price of vehicles have hit an all-time high of $35,870 for new vehicles, preferable SUVs and crossovers. There is a competitive structure and a high rivalry between the assemblers.
Although not a short history, electric vehicles are now being applied to the most modern technology, so that the battery is not too large, but can move long, accelerate quickly. It is more expensive than traditional cars because the size of the market is not big enough to make the product cheaper. An output on a production line is not as large as a gasoline car, which results in higher production costs on the electric tram head, from which the price to the consumer is also higher. In addition to tires or lights. You will find it difficult to repair your own car and the cost of repairing it is expensive.
3.Company Strategy For a company like Tesla, or any other company, having a defined and attainable strategy for the future can determine its success or its failure. Tesla’s strategy has been to emulate typical technological-technological products life cycles and initially enter automotive market with an expensive, high-end product targeted at affluent buyers. As the company, its products, and costumer’s acceptance matured, it is moving into a larger, more competitive markets at lower price points. Musk constantly maintained from then beginning that “Tesla’s long term strategic goal was to create affordable mass market electric vehicles” (Fehrenbacker). One innovative element of Tesla’s strategy is its distribution methods.
Economical Factors • Over the years, the automobile industry has been increasing the price of the cars due to inflation. There have been infrastructural developments in the industry and prices have been increasing as the customers want new cars whether the price of petrol increases or not, customers will look for new cars in the market. The new cars are more fuel efficient which attracts the customers. This was one of the reason for customers to buy Skoda. • The automobile industry is very much concerned with the country’s economy.
Did you know that in the near future, it is possible that cars could drive themselves? Driverless cars are now beginning to become reality with many big companies starting to test them out on the streets. Driverless cars are cars that drive themselves without needing a person to drive it. They are run by a computer system that analyzes everything needed when driving like, the weather conditions, other vehicles, stoplights and many more. Driverless cars could be on the market in 2019, this could change the lives of many by affecting where people would prefer to live, while also saving their money.
Strengths • Positive image of the company • easy brand image of being cost effective • strategies which have let to 90% fleet usage • Positive influence of CEO • Competition is worried Weakness • Heavy reliance on one supplier • Financially vulnerable • Small marketing budget • Founder has left day to day management of the company • Services not available in some major locations Opportunities • Cost of car ownership is rising • Viral marketing campaigns • Expansion of brand image by possible merger of esayJet and easyCar to easyGo • Expansion to Asian and American markets • Obtain cost effective and fuel efficient cars Threats • Competition may come up with budget rental lines • Policies can lead to legal actions • Rising fuel costs • Hunter
2. Export hub for Small Utility vehicles- India is emerging as an export hub for sports utility vehicles. The global automobile majors are looking to leverage India’s cost-competitive manufacturing practices and are assessing opportunities to export SUVs to Europe, South Africa and Southeast Asia. India can emerge as a supply hub to feed the world demand for SUVs. 3.
An increase in the disposable income of the consumer implying an increase in his purchasing power of the consumer, would cause a rightward shift in the demand curve. In recent time we have seen that due to increase in the Income of the general public, there has been a shift from the Lower CC-segment cars to the Upper CC-segment cars. So, with higher income and a 3. CONSUMER EXPECTATIONS The future expectations of the consumers range from common belief to individual belief that the price will rise or the supply would decrease or there might be a stockout. In either case, people purchase more or less automobiles.