While the political climate is not nearly as turbulent and disruptive as the auto industry, the fact remains that this industry that thrives on disposable income and the availability of easy credit, both of which are constrained by current economic conditions.
Opportunity and Threat Analysis
The greatest opportunity for the industry today is in creating more energy-efficient, highly customizable cars that also meet the needs of car buyers who want eco-friendly engines that have very small carbon footprints (Oliver, Lee, 2010). The broader trend of mass customization, where consumers are dictating their own brands or personas by their purchases, has invaded auto marketing and car buying. To make this selling strategy effective however, the supply chains of auto manufacturers must be synchronized to build-to-order requirements. The entire value chain of the industry is going through a shift due to this requirement today.
The greatest threat to the industry is consumer confidence coupled with too much dependence on foreign oil by westernized nations. The lack of consumer confidence is hurting sales today and has begun to change long-term behavior with regard to auto purchases. The threat of oil prices however is a much longer-term threat that is estimated to reach its apex in another 70 -- 80 years. Forward-thinking auto companies are using these facts as a catalyst for innovation and the creation of entirely new vehicle and engine designs. The threats of gasoline prices over the long-term are real, and it is very fortuitous for the industry that consumers are now more focused on the environment than on driving a huge vehicle that guzzles gas for the sake of status.
Recommendations
The auto industry needs to re-think its role in consumers' lives and redesign its entire value chain accordingly. The focus on smaller, more easily custom-configured cars through the build-to-order process needs to become a priority as is the need to invent entirely new engines and technologies to minimize environmental impact of their operation. Cars are very much of a status symbol; it is the second largest purchase many people make with the exception of their homes. The focus on making the car more of a statement of environmental awareness is already happening, as many celebrities only drive the popular hybrid models, with the Toyota Prius being their favorite.
The marketing of cars will go through a massive shift over the next five as consumer behavior and purchasing patterns continue to solidify. No longer...
U.S. Automotive Industry Chosen industry: automotive industry is the focus of this analysis. More emphasizes are made on the large -- scale automobile manufacturers. This is because of the inherently interesting industry as a result it being competitive and projected to go through a major restructuring due to globalization in the near days to come. The issue of decreasing oil reserves is the other reason that is going to trigger this
Use of single version of the truth and single information Balanced set of strategic metrics (Financial and non-financial). New methods of cost accounting (ABC, Target Costing). Internal vs. External Focus (Benchmarking and Self-Assessment). Process Management and Measures (value delivery). Stakeholder value measures Uniform set of measures Causal relationships between measures across all levels. Source: Lieberman; (1994; et.al.). Automotive Industry Analysis Entering 2007 it is clear that Japanese firms, lead by Toyota, will be at parity with and potentially surpass the
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