Automobile Analysis and Strategies - Essay Example

AUTOMOBILE ANALYSIS AND STRATEGIES INTRODUCT ION The automobile industry is one of the most lucrative and productive sectors inany given economy. With vehicles being manufactured and purchased everyday, the income generated indeed very high. The progress realized in this field is no doubt something worth admiration. The future looks bright in relation to the new developments made in regard to cars capability, models, among other things. Companies are ensuring that their products are outstanding for that competitive appeal. The urge for firms to outdo each other is obvious and evident; the people involved in the different processes have therefore, the mandate to ensure that quality, standard, efficiency and excellence are maintained. There are several automobile companies spread all over the world, in different continents and in distinct countries. Some of them are; Japan, Germany, Italy, France and the United States. These are the heavyweights who work in conjunction with other firms and certified dealers in the developed and still developing countries. Their job hence entails the assembling of parts to come up with a finished product. Some known names include, Toyota, Isuzu, Mercedes, Chevrolet, Citroen, Chrysler, Hummer and many more. Globalization is taking a whole new twist in this field of automakers. It involves the actual consideration of worldwide matters into account before agreeing on their own analysis and strategies. MAIN CONTENT The firms involved have put extremely large amounts of capital into the business. This is because, it takes serious investment and taking risks in order to realize good and stable profit margins. Too much work is done to maintain brilliance in this very competitive industry. Good arguments have been tabulated concerning the industrial and market aspects of globalization. Any given manufacturer tries to triumph his competitor using any means possible. Tactics which are applied tend to directly be against the opponent. (Lynch, 2008). The policies formulated have the primary aim of attracting customers, depending on demand, taste, economical growth and preferences. Taking the likelihood of activist groups taking to the streets, it then becomes important for the personnel involved to take into account environmental changes that are might take shape following introduction of their vehicles. In this case analysis, I find it rather important to at look Toyota Company Limited and Volkswagen. Toyota is fast growing and spreading, in fact it's to find their car models in almost the whole world and Volkswagen for being an ancient company that is still taking new shapes in relation to current and latest automobile model. Toyota is always trying to cater for those requirements that suit people of all walks of life. Citing example on the ever unstable crude oil and the resultant product's prices, they create less fuel consuming engines to cater for that economical allowance. Another more evident strategy used to fit in to the system is the variety in strength and capacity that their model can comfortably cope and manage in due time or over range of a given period. Networking with other industries is also an important aspect in order to win that continuity and confidence in customers and clients. It is then definitely a task earn to publicity and goodwill depending on the prevailing market-competitor state. Certain factors have to be considered in order to realize the goals the automakers have in relation to the industry, not forgetting competitors are many. They involve advertisement, marketing, research, public relations, community relations, employee relations, budgeting, evaluations and monitoring of their projects (Corcoran, 2008). It goes to further digging to know who amongst their competitors has connections in the agencies or Companies and their interests. This multinational vehicle company has all this data at its fingertips just incase they need to shift gears which will facilitate their smartness. They are aware of stiff competition in the industry. By strategizing on their research findings they have taken over the world market by offering catchy yet competitive prices which their rival have not yet achieved or been able to due to their high cost of production. It would mean risking on their margins to please their consumers the hence topple this very fast growing automobile firm. It is a common thing to cite Toyota products in different parts of the world. Their headquarters seem to understand the exact meaning of customer satisfaction. It takes only simple analysis of a market's demand and the ability to fulfill them to create a foundation of grand sale. In Volkswagen strategies continue to be made, reformed and reviewed to ensure that they up to date and are fitting in the current demands of the market and industry. Being an old organization, it can be said to have survived times since its vehicles are in demand. This is made possible by ensuring new model packages. Globalization entails a lot of procedures and protocol signing by different parties. Political atmosphere plays an important role in determining the balance of the economy of any given country. In an unstable environment, the cost of living adversely affects business. The main period when this usually occurs or seems to is if polls are due or taking place. To conquer the market and industry automobile manufacturers work to exhaust their expectations early to avoid this global imbalance which regularly comes at least after five years. In order to comfortably match up to the current competition, it has caused Volkswagen a huge volume of investment. From the ancient beetle and official trademark associated with Volkswagen, the veterans have launched new models from time to time in order to maintain influence in the global market. The German origin company has indeed survived all through by basically ensuring they manufacture models that match with the era. Developments have been made just to make each new model a better pack. Such changes involve engine size motor vehicle ability and capacity. Even when challenges seem to likely be over powering, Volkswagen is still flying higher and higher. I believe this is made possible by prolonging their models into editions, example is the golf, the initial idea make was named, first generation, and then followed second, and the series is still in progress (CgsStrategies, 2008). Global market dynamics is not something to be ignored. In a universe full of competition, it cost any company quite a great deal of investment. Market dynamics play important major roles in the running of a firm. This process puts focus on commissioning policies brought forward by members of the association.The people given the mandate to write down their findings work under pressure and deadlines just like in any other business premise. So, what does this global market dynamic do Teams are constituted to get the job under way. Researchers try to understand the field/industry, the market trends and then channel the information to their colleagues. A survey is carried out on people, both male and female extending to their age brackets. The main purpose is to find out exactly how their product or services get reception. It also involves creating awareness about new inventions (Market Dynamics, 2008) There is a rapid increase in growth and development in the car industry manufacture. It is worth mentioning that the competition between global automobile manufacturers in terms of profits and placing on the foreign markets spread globally. Its all about learning how to reduce cost of production that will reflect admirable profit gains and margins when balances are calculated end the financial year. Global car manufacturers carry out investigations to ensure that they stay on top and put in the luxurious rankings. In order to achieve the latter, high standards of packages and their delivery is of essence. This is what makes customers purchase their cars. And as a result, the company's level of satisfaction is achieved. Just because a company's goal is realized, it does not mean that it should then relax. It is expected to increase the need to continue with the pace or even climb to higher standards. This information on future expectations can be obtained by inquiring opinions and suggestions from people with their car models, with the aim of finding out the reason why they prefer cars from that manufacturer. This can be realized by doing research through interviews, questionnaires among other methods. (Mintzberg, 2008). From the above argument, it is to true say that global market dynamics have indeed taken the desired turn. Since the year 2000, efforts launched have continued to be practical with focus being shifted to spans of, in the coming fifteen years or so...Everything is easier in this era of the World Wide Web. In fact, all the information about car dealers and their makers is readily available on the reliable internet. This has enabled the worthiness of E-commerce to be practiced and the fruits appreciated or rather enjoyed. This by the way is made possible by the numerous business opportunities and links available by just clicking enter on the web pages. (B bnet, 2008). In the case of GM that is General Motors, the management has ensured that they have branches in all parts of the world. They have networked, with dealers and their certified associates, to market their diverse range of cars. By doing so, they cut costs on setting up premises owned, run and managed by them. They have continued to invest on more production facilities setting them up in numerous numbers in all their market interest locations. General Motors does not just set up this arrangements like it might seem, no, it costs them deep and intense decision making that involves experts' and analysts' views and studies. Critically speaking, global market strategies have indeed evolved and it's due to this fact that every industry player is doing best to be part and parcel of. Strategic opportunities have been the attraction to general motors to enlarge their reach. Market attractiveness is another reason. Due to the undying commitment from its consumers, General Motors is becoming an admired Corporate. The old and new product development plan is something else that is pulling. Starting early 1999 to current time 2000'S, the global market dynamics are fast growing and it is therefore getting more and more important for automobile makers to work on their strategies. There are huge gains brought by this facilitation. General Motors is ranked among the worlds topmost, therefore it continues to develop and spread its wings overseas. It is also actively involved in different mergers which consist of multinational companies and auto dealers. Increased global trade has resulted to immense competition with every player trying best to be the most sort after. Due to this pressure that keeps on mounting as a result of market fluctuations and change in the supply of newer merchandize, it has forced the firm to dispatch large lots and the practice of mass production. (Mind branch, 2008) Success in the global market dynamics has even pushed to the extent that there has been need to form alliances. The key leagues include of course the major names, General Motors, Ford, and Daimler Chrysler among others. The consolidation of this motor industry is sparking heat with every split aiming to outdo the other in terms of production volumes, change in models and the basic and overall reason of investing, profits, recognition, and respect. To control the daily business, which takes place in these global alliances, General Motors is changing their strategies and approach to matters arising in regard to demands, latest fashion, economic consideration in comparison to what the potential competitors have in their list for offer. General Motors has realized the need to actually work towards minimizing production cost and at the same time maintain good prices on their vehicles. Studies on the market help in the real decision on the rate at which to retail their vehicles. Among factors that are considered include currency rates and fuel prices. Being a major firm in the motor vehicle industry, General Motors strategies on matters that ensure no emergency and abrupt global markets instability can send them back to the drawing board therefore it is due to this fact that has enabled them to achieve a majority of their goals. Maintaining a stable global market dynamics position entails excessive effort since the competition is very stiff with every firm wanting to be the most successful. It is therefore, very important to appreciate the roles that these global dynamics play. The growth resultant is rapidly changing economical standing to higher levels. More employment opportunities are created where mergers are formed. Living standards are improving as a result of this facilitation of jobs locally and also overseas. Resources too get exploitation to maximum levels since capital to develop them is constantly available. Other relating links like roads and infrastructure are boosted to executive standards. Lastly, in tackling Daimler Chrysler ability to hit new marks and improvement on their products in perception by year 2010, the new Chief Executive Officer has a lot to achieve and effectively manage but it's not something to worry about since Chrysler has proved to be an outstanding automaker globally. With the ever brilliant unleashing of elegance models, it means their still more to come by year 2010. The firm is focusing working on new models but sill preserve and maintain their tradition of coming up with unique auto makes. The new management team led by Bob Nardelli is correcting the minor mistakes made earlier by his company and by using studies made on the industry; the team is yet to deliver. Chrysler has had numerous problems in its effort to stay put. In the year 2005, there were claims that followed serious allegations from their rivals that the firm was indeed copying model incentives appearance and even technological system. This suite led to court procedures that were against them. As a result of these adverse effects reflections were seen on their sales which stood at a drop that saw huge loses in their first quarter of financial year in 2005 (Mackintosh, 2005) Nardellis' ability to perform and leave Chrysler critics to doubt is quite possible. The approach given to ensure that the expectations are achieved is impressing. Apart from working to ensure customer satisfaction like developing youthful and more appealing auto makes, they are also applying new technology. Environmental compatibility, design and capability makeover is too being done. Using equipment that will improve on and off road safety precautions, comfortability, efficiency and economy is their latest plan (Simon, 2007). There is emphasis on the need to join partnerships with other alliances in the motor and affiliate industries. All this is being worked at to take Chrysler where they belong. In fact, Cerberus capital fears that they rapidly were loosing and continuing to, because of low interest rates and failure by its other players is considerably taking new shape showing positivity. This has booted their confidence to continue with investment in the automobile industry. Comparing their expectations, they believe that they will bounce back indeed given time (Reed, 2008). In my own perspective, Daimler can infact achieve all its goals if they follow their strategies to the latter. Following lessons learnt from their customers turn offs in their influential American market on their products, it is therefore very important for Bob to make sure that same mistakes do not occur often or will never ever in the future. Only time will tell if they are indeed on or off track. By clearly scrutinizing their trading records and working on their leakages they will prosper. Investment corporates should too involved themselves actively in firms where they put their money in order to know whether it's a worthy project either presently or in span of given time. CONCLUSION In conclusion, the automobile industry has proved its ability to fit and run in the system of the changing globalization. Though there might arise some difficulties here and there, devotion has shown its power to overcome them. Another great thing about the whole concept of the global market is the improvement in close and priceless relationship between countries and companies who form tiers with the different manufactures. This in turn has resulted to a change in lifestyle. There are so many positive and treasureable changes brought by globalization. Not only does it favor the big economized countries but it is also helping the still developing and the underdeveloped. There have been structural changes in the automobile firms, their customers and due to this, the companies are venturing on identifying new markets and opportunities. A product and model management strategy continues to enjoy more investment. The pricing of these products is made customer friendly to generate and build market relationships based on the long term. From the drastic market growth and expansion, there has arisen the need for financial considerations of the market's business by monitoring and evaluation of the participation volume. Though quite a lot has been target and part of it munched, there still remains a long way to go. This other bit can be chewed by accessing the market's atmosphere and maximizing on channels through which to acquire optimum benefits. It is also upon the basic role players to move that extra mile of understanding the market structure its inhabitants and the principles that govern them (Economist, 2008). As a matter of fact, competition is proved to be very consistent. Therefore acquiring skills in facing and dealing with expectations of the market and the changing environment is important. After active business transactions, the account of the trade is then planned for; this is where calculations on returns are tabled against expenditure. This report is crucial for investors to know whether their pot is enlarging since the balances represent a close picture of the real thing. REFERENCES Corcoran C. (2008). Long - Short Market Dynamics. NY:Wiley B bnet (2008). Business Service Industry. Last retrieved from the World Wide on 20/04/2008 at http://findarticles.com/p/articles/mi_m0EIN/is_2007_Jan_8/ai_n17095401 CgsStrategies.com (2008). SWOT Analysis, porters 5 forces. Last retrieved from the World Wide on 20/04/2008 at http://www.csgstrategies.com/five-forces-analysis.asp Daimler (2008). Technology and innovation. 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Last retrieved from the World Wide on 20/04/2008 at http://us.ft.com/ftgateway/superpage.ftcompany_modifier=Toyota+Motor+Corp&by=relevance&page=&criteria_name=text&criteria_value=%22Chrysler%22&related_id=&startMonth=&startDay=&startYear=&endMonth=&endDay=&endYear= Read More