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Assignment 2 - Essay Example

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Every industry was greatly affected by its downside, which is the depreciation of the value of currencies, as well as, its continuous instability. The automobile industry is one of the major…
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Download file to see previous pages A very good example for this is how manufacturers design the specification of the newer models that are launched in the market.
Another result of the global recession is the overwhelming increase of prices of materials used for production in the automobile manufacturing industry. Because of this, production cost for automobiles went up, which resulted to higher capital cost for automobiles. Consumers are not in the mood or rather refraining in engaging in big-ticket purchases, which resulted to low generation of revenue through sales (Crescenzi 2008 p.193).
Major automobile manufacturers are now focusing and concentrating in the features and benefits of each model. Since automobile sales have been decreasing drastically over the past year, this proves that the market has lost its capability to buy. And if they could, they become more cautious and concerned about the automobile’s features and the benefits they can get from the automobile. Considering that transportation is one of the most important aspects in everyday life, not only with businesses but households as well, the automobile industry has taken advantage of this aspect to generate demand of supply in the market. This is one strategy to somehow level the ratio of market demand against production and automobile sales.
The global recession’s effect in businesses and households is mainly on the income and revenue side. Since prices of petroleum products drastically went high numerous times in the world market these past few months, the need of maximizing revenue and funds against businesses and household expenditures for transportation and automobile maintenance was addressed by upgrading and innovating new automobile features. Engines that are low in maintenance and low fuel consumption had been a recent addition to the newer models that was launched in the market.
Non-price competition is a form of traditional automobile market competition that was further inspired by the decrease of ...Download file to see next pagesRead More
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