Global Competition In The Automobile Case Study

879 Words2 Pages
bulb-icon

Recommended: Global competition automobile

• Global competition in the industry
Global competition is changing the environment facing most companies today. As trade barriers fall and transaction costs decline, new global competitors are entering previously more isolated domestic markets. In response to this intensified competitive pressure, local companies are pushed to enhance performance by innovation and adopting process and product improvements.

The automotive industry is one to the largest and most important industries in the world. The Global competition in the automotive industry has similar concerns as in the United States. The automobile is one of the most highly recycled product with a 95% of retired cars entering the recycling system, and approximately 75% of each car …show more content…

Environmental factors such as fuel economy, fuel emission and clean air regulations are the main concerns of the public. To achieve this task, cost reduction remains very important in the automotive industry.

Environmental concerns are driving the automobile’s design and development to comply with governmental rules and regulations. These changes are forcing the manufactures to come up with fuel efficient alternatives and new emission controls with the objective or reducing the negative environmental impact that is damaging the environment.
General Motors the top leader in the motor vehicle industry turns all negative threats into a positive. General Motors has taken the lead in Hybrid cars, and the fuel cell prototype HydroGen3 which is being successfully completed in Europe. General Motors is now selling Hybrid cars in China and they hope to also lead in the future with hydrogen …show more content…

In 1965 Congress passed the Clean Air Act demanding 90% decrease of the automobile emission within the next six years. Manufactures now are looking into additional alternatives like Hydrogen. According to Daimler Chrysler, Hydrogen is the future for the automotive companies. Hydrogen is considered to be next breakthrough in fuel for all automobiles engines here in the United States and all over the world. By investing in research and development technology Daimler Chrysler will be able to revolutionize the automotive industry and remain on top of the automotive world. These changes and regulations comes with a cost, it will eventually affect the financial automotive industries who will pass the cost to the

Show More
Related

  • The Death of the Electric Car

    1085 Words  | 3 Pages

    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.

    Read More

  • Cummins: A Company with Emission Solutions and Innovation

    1919 Words  | 4 Pages

    Driven in large part by global initiatives and the potential for stringent regulations, the past decade or two has seen a marked increase in the importance of improvements with respect to environmental standards, including emissions and increases in fuel economy. In 2002, Cummins Emissions Solutions was launched after the need was identified for an emission solution that would help engines meet future regulations. In 2006, Cummins pioneered a hybrid diesel-electric bus which reduced fuel consumption and greenhouse gasses by more than 30 percent and me...

    Read More

  • Foreign Competition in the Automobile Industry

    1195 Words  | 3 Pages

    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.

    Read More

  • Hypercar: An Improved Tomorrow

    2351 Words  | 5 Pages

    The majority of people, especially in America, cannot go about their daily lives without a car. Automobiles have instilled themselves in peoples’ lives and shown their usefulness since their debut in 1769. Since then, humans have redesigned and refined the automobile thousands of times, each time making the vehicle more efficient and economical than before. Now as the world approaches an ethical decision to dwarf all others, many people look toward automotives for yet another change. The emergence of the hypercar due to ecological turmoil exemplifies the change the world has demanded. Hypercars alter everything people know about automotives, modern ecology, and fuel efficiency. Not only do hypercars offer a solution to many ecological problems humans are faced with now, they also represent the only logical area for the automotive industry, and by some stretch American society, to expand.

    Read More

  • The U.S. Automobile Industry

    2538 Words  | 6 Pages

    GM should continue to use its technological advantages to create innovative automobiles, but do so cautiously. GM should follow the direction of today’s environmentally conscious consumers who want less expensive, economical automobiles. GM should primarily utilize a cooperative game-theory approach in its sales and marketing strategies in order to stay in sync with the current automotive industry needs.

    Read More

  • Ford Motor Company

    3002 Words  | 7 Pages

    In the future the global car market is full of potential. There are currently 44 million vehicles and by the year 2002 experts estimate that number will grow to 64 million. That growth is not expected to be in the US, rather in countries such as: China, India, The Pacific Rim, South Africa, and South America. In America, a current trend is for the neighborhood car dealer to be purchased by a large manufacturer, such as GM, so cars can be sold through retail outlets. Other future endeavors include low emission cars, which are expected to provide expansions in sales. Some major automakers are investing in fuel cells, devices that convert liquid hydrogen into elec...

    Read More

  • Fuel Economy in American Automobiles

    1366 Words  | 3 Pages

    Fuel efficiency in automobiles has become a topic of much discussion in recent years in the United States. This is due largely to the environmental devastation that fuel emissions cause, but it is also sparked by the rising fuel costs. Making cars with high fuel efficiency not only saves consumers money, but also will drastically reduce the pollution that is caused by emissions. Today automakers are putting a tremendous amount of effort into making their cars more fuel efficient, both to meet government regulations and to make their car more appealing to the consumer.

    Read More

  • Differentiation Strategies Used by BMW

    556 Words  | 2 Pages

    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.

    Read More

  • Persuasive Essay On Electric Cars

    1187 Words  | 3 Pages

    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)

    Read More

  • Economics of the Automobile Industry

    2412 Words  | 5 Pages

    A vehicle is one of the biggest purchases a person will ever make. Over the years, the prices of an automobile have increased due to the rise of inflation. Due to a price index, the price of an automobile changes over a certain period of time. Economists compare averages of automobiles to calculate the cost of each vehicle that presents itself on a car lot. When all of the above is calculated within the purchase of an automobile, it affects every area of making the automobile to selling the automobile. All of these factors are impacted together for the automobile industry as a whole.

    Read More

  • Automotive Industry Analysis

    794 Words  | 2 Pages

    The automotive industry is one of the most important sectors of the economy for every country in the world. It involves a large number of corporations and institutions engaged in the manufacturing process of motor vehicles including designing, developing, manufacturing, marketing, and selling. It contributes to the global economic growth by generating a significant return and creating a ripple effect on supporting the supply chain as well as providing job opportunities for the skilled workers (ACEA, 2016).

    Read More

  • Impact Of Climate Change On Automotive Business

    1049 Words  | 3 Pages

    Almost all car makers around the world are responding to this issue and have begin their research to reduce the risk of climate change. The steps that the car manufacturers have to take to deal with this situation are to reduce the amount of CO2 emissions and waste produced by both of their manufacturing factories and vehicle by implementing new measures in their factories and by looking at using renewable fuels that produce cleaner emission.

    Read More

  • Auto Ford Motor Company Case Analysis

    911 Words  | 2 Pages

    The automobile industry is a pillar of global economy. Globally automotive contributes roughly 3 % of all GDP output. It historically has contributed 3.0 – 3.5 % to the overall GDP in the US. The share is even higher in the emerging markets, with the rates in china and India at 7 % and rising. China produces the highest number of automobiles followed by US and Japan (oica.net, 2015). The industry supports direct employment of 9 million people to build 60 million vehicles and parts that go into them (oica.net, 2015). Many other industries such as steel, iron, glass, aluminium, textiles etc. are associated with the automotive industry and resulting in more than 50 million jobs owed to the auto

    Read More

  • Globalization and Technology

    1460 Words  | 3 Pages

    Currently in the global environment, there is a strong sense of competition that must be achieved through better performance, almost all firms are competing in international markets due to the reduction in barriers for capital and tariffs. With the new changes in both communication and technology, the consequences faced are that production processes are no longer within national boundaries but spread across (Debrah & Smith, 2002).

    Read More

  • Transportation: The Side Effects Of Transportation And The Environment

    723 Words  | 2 Pages

    It is clear that the US consumption of polluting substances like lead, platinum and rubber has dropped due to improvements in the environmental friendliness of auto manufacturing, since these materials have been in use for cars since the 1950s. By replacing materials with those of a lower density has also made an important impact on fuel economy. Studies show that making 10% reduction in mass yields 5% improvement in fuel economy. Indeed, the US automakers in the last 25 years have responded to the government regulations Corporate Average Fuel Economy by changing materials to lighter ones like aluminum and plastics. Newer developments using other components like Magnesium, polymer composites, and ceramics also are helping to make further improvements to fuel

    Read More

More about Global Competition In The Automobile Case Study

Open Document