GMC Hummer External Environment

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GMC Hummer External Environment

Customers

There are two distinct groups of people who purchase Hummers: those who use it for practical purposes and those who drive the vehicle as a status symbol. The first group of people is those that drive the vehicle for more practical purposes. According to the article Hummer, the hummer was built based on the concept of a High Mobility Multipurpose Wheeled Vehicle (HMMWV or Hum-Vee). The HMMWV were military vehicles that provided aid to troops in rough terrain environments (2006, p.1). Therefore, a segment of the Hummer enthusiast population are the type of people that enjoy driving these vehicles off road, as well enjoy the power the vehicle provides to drive up steep hills, rough terrain obstacles, and even drive it through shallow water. The second group of people is those that drive the vehicle as a status symbol. Gross explains that after the attacks on the World Trade Centre, "Hummers became a cocky symbol of American greatness" (p. 1). The people who drove the Hummer were those that wanted to show there support for the troops in Iraq as well stimulate the economy (2006, p.1). However, people who do not purchase the Hummer in support of the war; purchase the Hummer for the status that the car gives off. For example, these people may want to show how successful they are, to show that they enjoy the finer things in life, to have one of the largest vehicles on the road, or enjoy the rugged look of the vehicle.

Competition

The Hummer has cornered themselves into a niche market from which the design has not yet been explored in the consumer automobile market. When we think about a vehicle that is both large and powerful, the first vehicle that most people think of is the Hummer. However, as the Hummer slowly enters the luxury SUV market with the introduction of the H3, the market becomes very fierce. Almost every major automaker has a SUV vehicle in the market; for example, Land Rovers whom are known for their world class luxury SUV's. As well, Jeep has become a competing force in the SUV market by offering rugged 4x4 vehicles at affordable prices.

Other competitors in the SUV market include Porsche Cayenne; BMW X5, X3; Lincoln Navigator; Acura RDX, MDX; Ford Escape, Explorer, Expedition, Edge; GMC Envoy, Yukon; Buick Rainier, Rendezvous; Cadillac Escalade, SRX; Chevrolet Equinox, HHR, Suburban, Tahoe,

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