Saturn Case Analysis Saturn's sales are down, and market share needs to be increased. Also, the product line is too narrow. Current advertising is targeting the younger population, but the average age of a Saturn buyer is 43. Saturn's initial focus on employee relationships seems to be fading as demonstrated with the clash between GM designers in Europe and the U.S. on the L-Series car. In addition, overall styling of the vehicles needs to be addressed. Key drivers of change in the industry (e.g., driving forces): The trend in vehicles has moved towards larger sedans and SUV's, and the ones who are purchasing smaller vehicles are looking for cars more sporty than the models Saturn offers. Competitor Strength Assessment (Competitor strengths & weaknesses, primary strategies of each competitor (e.g. low cost leader, focused differentiation, prospector, reactor, etc.), Porter's 5-forces assessment): Hyundai- cost leadership strategy, breadth of product line is low Kia- cost leadership strategy, breadth of product line is low Ferrari- differentiation strategy, very high price, breadth of product line is low. Lamborghini- differentiation strategy, very high price, breadth of product line is low Porsche- differentiation strategy, high price, breadth of product line is low. Mercedes- differentiation strategy, high price, breadth of product line is moderate BMW- differentiation strategy, high price, breadth of product line is moderate, known for their cars being in the shop constantly and high maintenance bills. Toyota- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling. Ford- focused differentiation, medium pricing, breadth of product line is high. A strength is their pick-up truck market share, a weakness is perceived reliability and styling on some of the lines. GM- focused differentiation, medium pricing, breadth of product line is high. A strength is market share, and a weakness is styling and reliability and perceived quality. Honda- focused differentiation, medium pricing, breadth of product line is high. Strengths are quality, reliability, overall value, and styling. Nissan- focused differentiation, medium pricing, breadth of product line is high. A strength is styling, and a weakness is some Americans simply will not buy any car that is not American made; obviously this weakness applies to all imports, but is only listed once. Porter's Five Forces: 1. Intensity of rivalry among competitors- there is intense rivalry among the automobile industry. There is only a handful of companies in the world, and it is war to survive.
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Each and every one of them having the potential to discover new technology or create some new edgy design. So in the case of GM their popularity can essential be an industrial threat. There is a new influx of consumers that are looking for individuality, economy and trends. GM has been considered by many in the industry as “old-school” and with the rise of “new-school” they are going to have to be very pro-active about keeping up with the desires of these new consumers. Notably, Tesla has grabbed a large consumer base that is attracted to their non-aggressive sales approach and the idea of made-to-order vehicles. Markedly, Toyota and Hyundai are a large threat because they share target markets. In contrast, Honda has some self-induced threats because of their manufacturing preferences. Honda refuses to modernize its production lines in order to keep people employed, the result being increased labor costs which in turn means higher end prices for consumers. Honda can expect future threats from other manufacturers as they delve into more environmentally friendly vehicles. There is a big push around the world to lessen our carbon footprint and lower emission to reduce greenhouse effect. Honda has always been on the frontline of innovations in these areas so they will have to be steadfast in order to remain top of the class in the coming
According to Porter, the key factors rising rivalry among firms in an industry are equally-balanced competitors, market maturity, high exit barriers and high fixed costs. And all of these factors are there in teams in the National Basketball Association (NBA).
Chevrolet, has always been at the forefront of innovation. According to Newcomb (2016), Chevrolet, recently created the Autonomous and Technology Vehicle Development Team, which is tasked with mapping out an engineering strategy as well as seeking partnerships and investments to make GM a leader in self-driving innovation (p.1). Chevrolet, has some of the world’s most loyal customers, I have a 1988 Chevy Caprice that has not run in five years, but, I just can’t seem to let it go. Customers are loyal to brands, which, according to Crosby & Johnson (2001), “elicit emotional attachment from customers. When interacting with the company, customers and prospects may have feelings of safety, pride, excitement, comfort, confidence, caring, or trust. These interactions activate feelings and build strong brand commitment” (p.2). That being said, I guess I can’t get rid of my Chevy because of my emotional attachment to
It seems like most cars on the road today are Fords. No matter the shape nor model the iconic blue logo always Seems to stand out. Ford began in 1890 when its legendary founder Henry Ford built the first ever Quadricycle. In 1903 Ford Motor company becomes incorporated, and in 1908 Ford introduces the first ever Model T. Fast forward to present day and Ford is still making innovative additions to their vehicles especially when it comes to technology. Over the past 126 years Ford Motor Company has been both successful and profitable. They attribute their success to their work in local communities as well as their ability to Franchise their brand throughout the nation. These aspects and more are what has made Ford such an outstanding and
...ded its highest sports car sales in the company's 75-year history. By maintaining these qualities and trends, Ford Motor Company continues to improve, transform and grow keeping ahead of today's vehicle market. Ford continues to research public trends and to expand and improve accordingly. An excellent example of how Ford performed a customer needs analysis and manufactured an automobile following all of today's trends, is the Ford Focus. (See appendix with regards to the comparison of the Ford Focus and the Honda Civic.) Ford's research led them to expect that men will be nearly a half-inch taller and women a quarter-inch taller in 2000 than they were in 1990. Following these guidelines, they provided extra roominess and comfort in the Focus that future customers require. "Buying a small car doesn't have to mean making compromises – in comfort, roominess, appearance, driving character, safety or value. Focus combines these elements so there are no compromises." (Jim O'Connor, Ford Vice President and Ford Division President.) The Ford Motor Company will continue to be one of the leading car and truck manufactures in the world by enforcing these trends. FOR NOW. FOREVER.
Porsche came out with the models of 914 and 944 because they take the consumers with lower income into account during the recession of 1970s. They redesign, reposition and reprice the vehicles so that it is allow the consumers to purchase the product for the purpose of social class, family needs or status. With this, Porsche still able to create loyal customers even if the economic situation did affected their business when they have considered their customers’ personal income, savings and interest
Again, because Ford is so diversified across its product and brand base, it is rarely impacted by demographic and social trends. Nevertheless, some trends may impact Ford’s sales mix. For example, as gas prices continue to increase worldwide, consumers are switching from gas guzzling trucks and SUVs to more compact vehicles such as the Ford Focus, Mondeo and Export. And, as the American and European populations continue to age older consumers are buying more traditional models such as the Sabre and the Taurus. But because the company’s product mix is both broad and deep, the company can capture sales lost in one segment by increasing marketing and sales efforts in another. The flexibility of modern production lines also allows the company to rapidly switch from one model to another in order to quickly meet changing consumer demand patterns.
There are many different automobile companies providing buyers with many styles of cars, trucks, SUVs, and motorcycles. Toronto Star January 14, 2005 present ways to approach the automotive buying process. There are many different surveys, crash reports, and rating systems comparing different companies and their vehicles. Things you should look for when reading these published articles are who conducted the study? Who paid for it? Who gains from it? Who loses? These are all things to keep eye on as some automotive companies will run their own surveys making their products seem overpowering against the competition. Some prove their products are safer then the competition where the competition has been proven time and time again to make that survey seem inaccurate.
Getting a car is an intricate process as there are so many factors to consider. Factors that can be daunting if proper research of the vehicle are not done. Everyone wants to make the most of what they pay for and wants to make sure that his or her car is of the best quality. There are a quite few makes of cars available with quality guaranteed but two of the major would be the American and Japanese made cars. Both are excellent car builders and provide good fuel efficiency vehicles that are cost efficient. However, there are some facts and details that can influence buyers to choose one make over the other, this includes: performance, reliability, and resale value.
Business experts have long debated whether GM’s Saturn Corporation was a success or failure in the automotive world. Today, many of the methodologies that the “Different Kind of Company” employed live on in other brands. One of notable areas that Saturn excelled was customer service. Until the waning years of its existence, Saturn was a perennial top 10 leader in customer service ratings. For example, Saturn finished first in 2002 among a sea of luxury and near luxury automobiles largely due to the dealership experience, according to J.D. Power.
With today’s society being the new age of social media, Mercedes Benz has now reached a new high demographically. Websites such as Facebook, YouTube, twitter, and Instagram has jumped on the advertisement bandwagon. Mercedes Benz is now connecting with amazon also to create a whole new experience for the future. Their strategy is to aim for younger buyers through social and digital media influences. Its prestige and revolutionary approach is an example of how their marketing strategy has been very successful. The technology, safety, performance, and interior set its brand far away from other vehicles. Dating back to 1886 Mercedes Benz has a history of making history. Its motor trend has expanded from several different classes and the consumers love them all. These vehicles were designed to be very distinguished with high quality all across the