Related and Supporting Industries: With more than 7,500 small and medium sized companies, the Chinese automotive supplier market is still very fragmented ( China Association of Automobile Manufacturers (CAAM), 2007). About 70% of the world’s top 100 automotive suppliers have subsidiaries in China, with dispersed activities in this huge country, as most of the OEMs (Original Equipment Manufacturers) have developed their own supplier network around them (Kasperk, 2010, p. 7). Initially, as per governmental regulations market entrance for the foreign OEMs was only possible in joint venture agreements with Chinese partners, this helped the suppliers to considerably improve the quality of their products. Some of these suppliers have managed to attain a quality standard at par to German suppliers in product segments with low and medium technological sophistication. However, a majority of Chinese automobile suppliers still suffer from low R&D activities and low production volume due to small scale production (Kasperk, 2010, p. 7). Only a very few are able to offer complete modules or systems, most of them offer simple spare parts like tyres, fuel tanks and bearings (Kasperk, 2010, p. 7). Chinese automotive suppliers represent a market share of less than 10% when it comes to sophisticated product segmentation. The Chinese government is implementing concentration policies that help suppliers to develop complete module producers or system providers instead of only delivering ordinary spare parts. Also, a large number of Chinese suppliers are increasing their R&D spending and cooperating with universities. Even though the distance between Chinese and global suppliers with regard to technology and quality standards is quite substantial, C... ... middle of paper ... ...I Discussion Papers Innovation Systems and Policy Analysis. Hardin, G. (1968). "The Tragedy of Commons". Jimenez, J. P. (2012). Policy options for the promotion of electric vehicles: a review. Research Institute of Applied Economics. Kasperk, G. (2010). National Competitive Advantage of China in Electric Mobility: The Case of BYD. 2. Lin, Z. L. (2010). How do local governments implement policies of low carbon industry? A case study on the implementation of demonstration project for new energy vehicles. Boston. Martin Locstrom, T. C. (2009). The Electric Vehicle Industry in China and India:The Role of Governements for Industry Development. Tagscherer, U. (2012). Electric Mobility in China - A Policy review. Fraunhofer Institute for Systems and Innovation Research , 5. Wu, D. (2006). Analyzing China's Atomobile Industry Competitiveness Through Porter's Diamond Model.
Any time the company is looking into software project, there are areas associated with risk such as cost, time and relationship with suppliers. However, for Harley-Davidson, “collocation of suppliers with production facilities and their integration into company’s development process was the essential part of long-term relationship development”. Through a continued focus on collaboration and strong supplier relationships, the company could position itself to achieve strategic objectives and deliver cost and quality improvement over the long-term. Since, at that time company had no centralized system in place to handle relationship with suppliers and consequently, most of company’s time was spent on supplier management activities. For example, reviewing inventory, expediting and data entry. Furthermore, each supplier had different information systems for “Maintenance, Repair, and Operations (MRO), Original Equipment (OE), Parts and Accessories (P&A), and General Merchandising (GM) purchasing activities”. The systems, already provided by supplier, had to be further modified to meet individual need at each location, such as “the OE system at Harley-Davidson’s York, Pennsylvania site was different from the OE system in Kansas City”. However, due to long-standing tradition of gradual change implementation and focus on quality, quick transitions were unwelcome and did not come easy for the company. The size of the project determined how much risk was involved in terms of cost, time, and supplier relationships. The idea of switching to global purchasing system was seen as a threat not only in supplies and production flow interruption, but also in damaged dealer/customer relationships and lost sales. Furthermore, failure of the sy...
Increasing environmental awareness, coupled with a responsible American government and improved technology, have all contributed to the comeback of low-and zero-emissions vehicles in the US. It remains to be seen whether the automakers and oil companies will once again work to halt this progress, or embrace it as the technology of a more responsible future.
The Automotive, or electric car industry particularly, comprises all those companies and activities involved in the manufacture of electric motor vehicles (EV), including most components, such as engines, bodies and rechargeable batteries or another energy storage device. The industry’s principal products are passenger automobiles. Despite the fact that the first electric cars were produced in 1880s , the advances in internal combustion engines, especially the electric starter, soon diminished the relative advantages of the electric car and became the dominant design in the market. Due to this the EV was almost a forgotten industry staying in the early stage of development, conforming to less than 1% of the automotive stock
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer.
The future American commuter will undoubtedly have to transition from the use of fossil fuels to new alternatives due to the diminishing availability of the nation’s oil resources. How will America respond to this upcoming issue? It is difficult to predict which alternative fuel source America will ultimately choose, but with the premier of Nissan’s electric powered Leaf and other companies; such as Tesla Motors and Chevy, with their electric cars ready for market, the electric car may be winning the race to become the new standard for the gasoline alternative. Electric cars resolve long standing environmental issues, but it will need to maneuver around many roadblocks to become a marketable consideration for the general public. The cost of electric cars, currently on the market, makes them an impractical purchase for the average consumer. If cost is not the growing concern in today’s economy which prevents the consumer from considering this option; they may deny the technological advance due to battery storage capabilities and the inadequate infrastructure in place to refuel and provide for them.
With a gasoline-fueled vehicle, buying gas to operate your car is a never-ending process. With the high price change of gasoline and oil, operating a gasoline-fueled vehicle tends to be very costly. While there are some types of small gasoline vehicles that get much better gas mileage than larger vehicles, even the most powerful gasoline cars will normally desire a contribution every month. According to some experts the only way a mainstream market for green vehicles wills materlize is with a pronounced and prolonged rise in fuel prices. (Buss, 4)
Over the last 30 years the world has seen drastic changes in the Chinese way of making business. Nowadays, China has opened its businesses to the rest of the world, especially America and Europe (Teagarden & Cai, 2009). As a result, their economy has increased and the evolution of the companies have changed to be from closed doors to be international and multinational (Teagarden & Cai, 2009). This essay will analyze, first of all, how some Chinese companies have had success abroad, looking at the strategy that they applied to expand and to improve their products. Furthermore, this essay will show examples of successful Chinese firms, such as Lenovo and TCL Group, and how they achieve it.
Ford Motor Company's Global Electrification Strategy. Business Economics, 46(3), 167-170. doi:10.1057/be.2011.10. Knox, J. (2011). The 'Standard' of the 'Standard'.
The substantial increase in the demand for EV’s came just in time as we are slowly but surely running out of oil. Some estimate that by the year 2040, 35 percent of all vehicles will be electric (Sullins, 2017). An article from the U.S. Department of Energy stated that “Electric vehicles hold a lot of potential for helping the U.S. create a more sustainable future. If the U.S. transitioned all the light-duty vehicles to hybrids or plug-in electric vehicles, we could reduce our dependence on foreign oil by 30-60 percent, while lowering the carbon pollution from the transportation sector by as much as 20 percent (energy.gov, 2014). It’s obvious that gas-powered vehicles have harmed our planet with their emissions. Although EV’s cannot reverse that damage that has been done, they can eliminate, or at least slow down, the inevitable demise that our planet is headed towards. Along with the beneficial environmental factors that correspond with electric cars, there are also beneficial financial factors. The average American spends about $2,000 on gas annually. In the future, charging stations will charge roughly $12.00 for a full charge, which is about 300 miles. This means that the average American will save about $1,400 per year on these specific car
Products are not standardized and vary by country in terms of type, packaging and specification. This increases production time, production costs, lead tim...
Electric cars are becoming increasingly more necessary, and have more advantages than disadvantages. Electric cars help to decrease the noise, pollution as they are much quieter. They do not emit any (or much less) carbon emission than petrol cars. Electric vehicles are the greenest mode of transport in the personal transportation industry. For each litre of fuel used in an engine produces more than 2.5kg of CO2. CO2 will be produced by an electric car but still a very little amount. It is also possible to use renewable power or a green energy supplier in the electric car. Thus it would lead to less polluted and safe working environment for all of us. However, safety is a big concern with using vehicles. The fluids in the batteries actually take impact better than a fully made gas car because it is not that flammable. Petrol cars and diesel cars are more flammable than electric cars so they are greater of taking impact in the event of an accident. I think that this is a very good reason because fewer people would get injured or hurt. This would save money because electricity is cheaper than gas and electric cars are easy to operate. Also is very ECO –friendly which mean that it is cheaper to run and have to pay very little road tax. In a pure electric vehicle there’s nothing combustible and have far fewer moving parts than you would find in a petrol or diesel car.
The issue of electric cars has been arising nowadays. But many of us never really find a true example of the uses of electric cars in everyday life. From the article “Electrical Engineering”, an Australian built his own electric car from a second hand Porsche. The article proves that having a private electric car is no longer a dream. But do all people know the good things and the bad things about having a private electric car?
Vergragt, Philip J., and Halina Szejnwald Brown. "Sustainable Mobility: From Technological Innovation to Societal Learning." Journal of Cleaner Production 15.11-12 (2007): 1104-15. Web.
Moreover, China is the best example for how important is the government’s role in nations economy. Chinese government have created national team to focus on specific sectors such as electronics and automobile. (Sutherland,2003). As a result of this strategy, China became the biggest automobile manufacturer in the world by the end of 2012. Also, Chinese government is very successful to control financial markets and it owns 3 of top 10 banks in the world. On the other hand, in another growing state, India, government is applying different strategy rather than Chinese government that is based over encouraging foreign direct investments into the state by lowering tariffs. Eventually India has joined the top ten automobile manufacturers in the world and net profit of the companies has slightly increased by the end of this process (Sardy and Fetscherin, 2009)
The Capital investment, skilled and licensed labour force, technological advancements, working with good quality suppliers is considered big barriers of entry into this industry. The future requirement of electric cars and hybrid vehicles has opened this industry to some new entrants like Tesla.