Among the customers who prefer Fiat Chrysler products includes middle-aged working women and young people, such as students who prefer smaller cars that are fuel efficient and cheaper to the pocket. Efficiency entices These groups of consumers. However, educational attainment does not play a significant part in the buying choices of Fiat consumers.
Fiat specializes in the niche of cars that are small, efficient, and low-cost in a country where people embrace fuel guzzlers. However, some consumers perceive the brand to have been tainted by the associations with other companies, such as Daimler. Fiat Chrysler can expect to venture into the production of intelligent cars and thus should increase its spending on R&D to better serve its customers.
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The economic environment is characterized by unemployment rates, gross domestic product of consumer countries, inflation rates, levels of disposable income, and interest rates. The societal factors include pollution levels and consumer demographics, for instance, age and population size, which will affect how consumers buy Fiat Chrysler products. The changes in the rate of new product development, shared technology and innovations through alliances as well as changes in automation affect the technological landscape of Fiat Chrysler’s business. The legal factors are antitrust laws, employment laws, and discrimination laws which affect how the company conducts its …show more content…
Ford has increased R&D as well as advanced powertrain production to venture into the small car market that is dominated by Fiat. The company has increased the production of fuel-efficient transmissions and trucks thus presenting a challenge and direct competition to Fiat Chrysler. Ford has a grip on the American market, which Fiat Chrysler has not fully penetrated due to branding problems.
Peugeot, on the other hand, focuses on the same fuel efficient and hybrid niche for passenger cars and light commercial vehicles as Fiat Chrysler and has cemented its customer base in the European market, a feat that Fiat Chrysler is yet to attain. The European market share for Peugeot stands at 17.4 percent compared to Fiat’s 6.5 percent.
Recommendations
Fiat Chrysler should invest heavily in research and development to stop lagging behind competitors in the market. The areas the company should concentrate on include; autonomous driving, hybrid technology, fuel economy, and an increase in profit margin. The company should also boost its global operations to rectify the shrinking sales volumes in South America, and increase presence in the Asian-Pacific region, where competitors have solidified their businesses. It should also formulate innovative strategies for the next five years to improve the quality of its products and
This paper will focus on the future of the U.S. Automobile industry as the United States recovers from the worst recession we have experienced in the past 75 years. I will provide information on the following topics pertaining to the U.S. automobile industry:
In the observation of Sergio Marchionne and the Chrysler group there were many things that needed to change within the organization to make it survive not only the recession but the future in a competitive leading edge automobile industry. There were a couple of observable artifacts, and a Hieracicial framework that may have led Chrysler into bankruptcy. It is still not clear if Chrysler has changed the Vision statement for the organization, but after a review it is clear that it is customer focused. I found it interesting that Mr. Marchionne did not purchase Chrysler, it was a Government agreed merger with Fiat (“Fiat, Chrysler and Sergio Marchionne,” n.d.) Sergio Marchionne was able to change the culture and combine two companies in two countries and managed to boost sales and profit. (Clothier, n.d.)
The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.
...th a growing proportion of elderly people. Global market dynamics and innovations in big data and social networking are transforming the business strategies of companies everywhere—and forcing them to rethink fundamental rules of engagement. For better or worse, the future entrepreneurs will have to surface as one the most disruptive forces. As big data pushes for alternative ways of working – proactive solutions that drive information must quickly figure out which new policies and tools can be utilized most effectively. This grants enormous opportunities for key technological breakthroughs that will be needed for the next generation of transport.
As the economic integration of Europe continues, it is likely that increasing international competition will affect firms in European industries. As other countries expand and have more trade worldwide, the more the European economy will be affected. The economy will tend to buy from outside of Europe due to taste and lower prices. There would be more firms to choose from decreasing Economies of scale are significant because motor vehicle manufacturing is an industry based on growth. Since the automotive industry being discussed is in Italy, it is based primarily around one company, Fiat. The majority of sales of automobiles in Italy are acquired by Fiat. The automotive industry constitutes a substantial part in the European economy because this industry makes up 10 percent of total manufacturing output.
I think that the target audience for these cars is the same. these cars are family cars. Both of the cars are designed to be comfortable and safe, they are not advertised to be fast sports cars. or stylish city cars; they are advertised as normal cars. In both of the adverts there is no real reference towards the performance of the car apart from in the Chrysler where there is a reference to the fuel.
In a capitalistic country with a free market, foreign competition is expected. This is no exception for the automobile industry where America competes with its various rivals. Competition from elsewhere encompasses that from Italy, Germany, and of course, the renowned Japan. The Japanese vehicle industry is especially competitive; according to the Automotive News Data Center, five out of the ten best selling vehicles of the year are Japanese vehicles. This data applies to the U.S. market over the first 9 months of the year. Expectedly, the automobile industry is an important and significant market. Motor vehicles are a major form of transportation as many people in the U.S. own at least one car.
Ford Motor Company has been and till the date is known as the king of innovations in the automobile industry. Their research & development department and innovation of interchangeable parts in moving assembly lines resulted in extraordinary global extension for them. They are an old heritage who ruled and still doing impressive jobs in the global automobile market. Some prestigious motor brands are also owned by Ford.
Many economic factors exist that impact the development of Ford Motor Company's strategic plan and it’s no small task to project how some of these factors might change as the strategy is being realized. Consider the prospect of expansion into a new market like China or Mexico. Economic changes like currency devaluation will make Ford’s product more expensive to their target market potentially reducing overall sales revenue. Oil prices as we’ve seen in the U.S. economy can also play a big factor as large vehicles become less desirable and more fuel efficient compact cars gain market share.
Another strategy used by BMW to differentiate itself from other automakers in the market is the proactive usage of technology and innovativeness in the development of products. From the early 1990’s, BMW has been on the forefront of incorporating technology in its designs in line with the technological advances of the modern world. This has led to the creation of inventive products. The uniqueness of these auto products put BMW in a position of advantage. The development of the hydrogen car as early as 2000 was an indicator of the company’s innovative strategy. In addition, the company also presents itself as environment friendly creating a whole range of vehicles in this category. This is a differentiation strategy meant to boost the company’s image and reputation amongst customers. In addition, this gives the environment conscious customers a variety of products to choose from giving BMW an upper hand in the industry.
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
BMW- differentiation strategy, high price, breadth of product line is moderate, known for their cars being in the shop constantly and high maintenance bills.
Ford motor company offers a wealth of variety to the automotive consumer. As they start their second century of business, they are now in a position to appeal to the widest range of potential customers. Each of their automotive brands has a unique personality and holds a distinct place in the ford motor company family.
The global company Mercedes-Benz is considered one of the most successful and well-known automotive companies worldwide. Since 1886, the company’s founders Gottlieb Daimler and Carl Benz made history with the invention of the automobile, including the Daimler Group, which is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles globally (Daimler, 2013). Their main focus is innovation, safety, technology, style, brand image, expansion, and superior automobiles by offering the best of the best to consumers worldwide. The brand’s philosophy is to continuously create radically new products to advance the cause of human mobility. It is also the number one luxury brand in the United States and Germany while continuously expanding in China and Russia as well (Interbrand, 2013). Mercedes-Benz has a great selection on divisions such as cars, trucks, vans, buses, and financial services offered to any consumer or business. Their global reach has increased tremendously by including production facilities in 17 countries on five continents and having 93 locations worldwide. As a pioneer of automotive engineering, their strategy is to continue the same pioneer role with the ongoing development of mobility, especially in the areas of safety and sustainability (Daimler, 2013). It is very essential for the company to focus on consumers’ needs and their highly well known brand in a competitive global economy. That is why the company Mercedes-Benz releases a brand new model every year to stay on top of its competitors by improving previous models. Some strategies practiced are global marketing, global product development, global product pricing, global advertising, global distribution, an...
Market Segmentation, Positioning and targeting for BMW 1.1 Introduction This report aims to examine the market segmentation, positioning and targeting of BMW (automobile company). BMW will be examined giving information about the company and where it is now and any recommendations that we feel are appropriate. 1.2 BMW Company Profile BMW was formed in 1917, from the merger of two small aero engine makers. Their famous blue and white symbol stems from the colours of the Bavarian Luftwaffe and is said to resemble the view of the one of their plane through a propeller. BMW is renowned for its sporty, sophisticated & luxury image which has been built up since the 1970's with many motor sport victories ranging from Touring Car to Formula 1.