AUTO INDUSTRY

Auto Industry



Auto industry

Introduction

The global auto industry is huge, with high sales and high competitive intensity. Increasingly, automakers are working to develop a wide range of vehicles to appeal to every customer. The automobile industry in United States is highly competitive and hence the organizations are required to embrace meticulous strategies to keep up in business. Five of the major competitors in the automobile industry of United States are Toyota, General Motors (G.M), Ford, Daimler Chrysler and Honda. To be at the forefront of the competition, these five firms have embraced strategies, which are similar in nature, aimed at giving them competitive advantage.

Toyota's lean production methods and fast time to market have aided the firm in quickly developing car models focused on different market segments. Toyota's first effort to win the important market segment of buyers in their twenties was unsuccessful; their fuel-efficient Echo subcompact was marred by unattractive styling. The firm quickly changed its approach, introducing Matrix, with sporty hatchback styling and electronic music capability, in 2002. Toyota is also known for its ability to segment markets, such as offering six different SUV models in varying price ranges. The Japanese automaker balances the number of products against cost constraints, and it also closely monitors the actions of its competitors, especially in emerging market segments.

General Motors

General Motors has been through some difficult times in the past decade and it seems as if they have learned some hard lessons. On the basis of these lessons, the organization has started to adopt a strategy of restoring profitability by redesigned products, aggressive marketing, decentralized style of management and a profit rather than a market share goal. One of the major strengths that General Motors possess is the global awareness and presence all over the globe. This strong global presence enables General Motors to integrate its operations so that each manufacturer can concentrate on its core competencies.

Ford adopted a low cost strategy aimed at reducing cost of production by cutting all excess costs in all segments of its operations. The strategy aims at eliminating all excessive costs. The company under this strategy adopted a one line manufacturing process where cars are developed entirely in one process rather than having different engineering sections concentrating on different segments of the production process. The management sees such efforts as helping reduce costs by helping the company become leaner yet maintaining quality.

Daimler Chrysler

The DaimlerChrysler umbrella covers many well-known brands such as Dodge, Chrysler, Mercedes Benz, and Jeep. This means DaimlerChrysler has strong brands that are recognizable in almost every part of the world. Within these brands DaimlerChrysler also has wide variety of automobile products that span all price ranges and model types, from economy cars to luxury models. In the arena of American car makers the Chrysler brand stands out as a leading innovator in vehicle design. Chrysler is well known for category breaking models such as the PT Cruiser and Plymouth Prowler. DaimlerChrysler is currently a leader in hydrogen fuel cell ...