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Internal factors relating the marketing mix, and external factors of the environment that could have an influence on sales are described. With the right decisions there is no reason for GM not to become the automotive leader it once was. (Woo Jung Kim, 2007). Price is based on internal efficiency in order to have a margin that will sustain above average returns and cost to the customer so that customers will purchase your product/service. (Henry A., 2008). (Campbell, Stone house, Houston, 2007). This compares with an industry which is determined by supply conditions and based on production technology. In a bad economy: The interest rates will often be higher. This is an opportunity that will never be satisfied, meaning that every automobile company should always be attempting to develop the automotive world’s most popular vehicles, and as we know, what is in today will be out tomorrow. A continuous effort to lower costs relative to competitors is necessary in order to successfully be a cost leader. But recent fuel price steeply increased. If buyers are strong and there are close substitutes available for the product, the degree of competitive rivalry will be greater. Due to the industry’s consumption of products from many other manufacturing sectors, it is a major driver of the 11.5% manufacturing contribution to GDP. Though high levels of internal competition drove innovation in the past, new sources of competition have emerged and have increasingly influenced the development and design of vehicles. Though many factors influence fuel price changes, a few stand out as the most important considerations for retailers: the ones you can control. For instance trade barriers and incentives to the public to buy new cars. The company has taken a large hit in recent years and needs to find a way back to the top. It historically has contributed 3 –3.5 percent to theoverall Gross Domestic Product (GDP). This is not an example of the work produced by our Essay Writing Service. Car AI promises to revolutionize the automotive industry and, more importantly, the automobile. (Jeffrey S., 2003). (Woo Jung Kim, 2007). (http://www.csus.edu/indiv/k/kuhlej/182ch6/tsld002.htm). Primarily, there is a need of a more thoughtful understanding of Man himself because all human problems have their roots in our own nature as stated by (Simon, 1973). Informed by socio-technical studies of automobility, the paper emphasises the importance of recognising how decisions regarding material use are always shaped by more than simply cost considerations. Factors like falling stocks, lack of dividends, below par quality, employee lay-offs, bankruptcy, etc. Much of the success of Toyota and Chrysler in overtaking GM is attributed to their ability to leverage the creativity of their supplier base while keeping the cost of crossing company boundaries low. Implement strategies effectively requires the organization to be sufficiently flexible in its organizational design. Your ultimate goal should be to understand every customer individually; in that way, the fuel industry is no different than any other business. In our recent report on Consumer Trends for 2020 , Brandwatch surveyed 8,000 people around the world and studied social posts around key topics and industries to see what shifts we could see heading into a new year. No one wants to be seen driving an unattractive piece of junk because of what other people will think of him or her. In the automotive industry, growth of the economy is not only affected by the environmental issues of the products or services, but it also has an impact on the customer perceptions. Political factors may also include goods and services which the government wants to provide or be provided and those that the government does not want to be provided. *You can also browse our support articles here >. People very often have strong allegiances to particular brands that they may choose to purchase always. The many reasons to why I have chosen Sao Paulo and why it is suitable for a car Manufacturing site are: 1. Drawing on industry interviews, six interconnected socio-technical factors are identified that guide the vehicle design and manufacturing process. Registered Data Controller No: Z1821391. This paper investigates why material throughput remains high in the UK automotive industry when there are opportunities for material efficiency improvements. Economic factors include interest rates, disposable income, unemployment rates, retail price index (inflation), gross domestic product(GDP), and exchange rates. (http://www.greencar.com/articles/chevrolet-silverado-mild-hybrid-pickup-offers-fuel-savings.php), General Motors used the marketing and sales strategy from its Saturn division in the United States to produce and sell new Buicks in China that were manufactured by a 50/50 joint venture with Shanghai Automotive Industry Co. Such schemes from manufacturers often restrict buyback to its own models, with discounts on other brands usually a pittance. (Henry, 2008), A PEST analysis is a business measurement tool. You can view samples of our professional work here. (Stephen p., 2007), Firms compete on both price and non-price dimensions. Read the case study Globalisation and the car industry.. should be in, or wants to be in, and what it wants to do with those businesses. (3564words), Campbell D., Stonehouse G., Houston B., 2007, Business Strategy second edition, Needle D., 2000., Business in Context An introduction to business and its environment, Thomson Learning, 3rd edition, London, Jeffrey S., Caron H., 2008, 2004., Foundations in Strategic Management., Thomson Learning, USA, Henry A., 2008., Understanding Strategic Management., Oxford University Press Inc., New York, Tae Gu Lee., 2003., Business and Management., Muyokpub., Korea, Woo Jung Kim.,2007.,Automotive Industry Strategy.,Suhakpub., Korea, Jeffrey S., 2003., Strategic Management of Resources And Relationships; Concepts and cases., John Wiley & Sons, Inc., 605 Third Avenue, New York, 22.11.2005., Doubts remain over GM., retrieved on 29.04,2009 from http://news.bbc.co.uk/2/hi/business/4461168.stm, Retrieved on 29.04,2009 from http://www.gm.com/vehicles/services/, Retrieved on 29.04,2009 from http://www.greencar.com/articles/chevrolet-silverado-mild-hybrid-pickup-offers-fuel-savings.php, Retrieved on 29.04,2009 from http://cafe.daum.net/sewn/HKXp/61?docid=qV81|HKXp|61|20090227121252&q=Strategy%20innovation&srchid=CCBqV81|HKXp|61|20090227121252, HaSong.http://www.globalinsight.com/Scripts/registrationForm.cfm?ID=5&gclid=CKCZhdLn5pkCFZUvpAodnFAzQg, http://blog.daum.net/ilsan1004/17235465?srchid=BR1http%3A%2F%2Fblog.daum.net%2Filsan1004%2F17235465, Ji Hyun Cho., 10.03.2009., In future GM.,retrieved on 29.03.2009., From, http://bbs2.agora.media.daum.net/gaia/do/kin/read?bbsId=K150&articleId=524234, Retrieved on 25.04.2009 from http://findarticles.com/p/articles/mi_qa3913/is_200403/ai_n9404349/, Retrieved on 25.04.2009 from http://www.cutter.com/research/2004/edge040302.html, Retrieved on 29.04,2009 from http://en.wikipedia.org/wiki/Leadership, Retrieved on 30.04,2009 from http://www.wxyz.com/news/local/story/UPDATED-New-Leadership-at-GM/FdKJNIzyPE-48KPOWbikcQ.cspx. 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