Research

  • Category:
    Management
  • Document type:
    Article
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    791

3MANAGEMENT OF AUTOMOTIVE DESIGN AND DEVELOPMENT

Management of Automotive Design and Development

AUTOMOBILE

STRATEGY

  • Carbon fibre frame in i3

  • China Market specific long wheel base

  • Hydrogen car by 2020 (Baisya And Das, 2008)

  • Hydrogen powered cars

  • Frontal radar system

  • Lane detection camera

  • Fuel-cell car

  • Hydrogen powered car by 2020

  • High-tech perk display controlled by gestures

AUDI H-TRON QUATTRO

  • Hydrogen car production

  • Television screens

  • Lane navigation driver assist systems.

FORD AND MARCEDEZ BENZ

  • Hydrogen powered car production

PERCENTAGE REDUCTION IN CAR PRICE IN COMPANIES OVER YEARS (Shin, 2014)

Research

BRAND AVERAGE PERCENTAGE REDUCTION IN FUEL USE PER MILE (Bercker, 2012)

Research 1

Research 2

HYPOTHESIS:

INCREASED CAR EFFICIENCY LEADS TO INCREASED MARKET DEMAND AND INCREASED MARKET INFLUENCE.

This is a directional hypothesis drawn from the efficiency and comfort trend of automobile companies that result in variation of car demands, sales and market influence. From the comparative data collected, on average fuel consumption per mile of the three automobiles over years since 1990 to 2010, Toyota indicated a significantly high percentage reduction in fuel consumption than the rest which stand at 8.45% in 2010 as compared with 11% in the previous 10 years and 10.9% recorded for Mitsubishi in 2010. Equally on the market influence in Africa as per the year 2008, the highest was Toyota with 53 % rate hence signifying an increased market demand with a true correlation between automobile efficiency and the sales. That is the major reason most of the automobile companies are gearing their market strategies towards the establishment of new cars that are hydrogen powered and efficient in mileage per hour.

Another correlation in market influence is the average car price reduction and the market influence over the years. Toyota has achieved reduced market price by 1% in 4 years since 2008 to 2012 of its products while incorporating efficiency and the two factors are positively contributing to its market influence.

WEAKNESSES, UNKNOWNS AND RISKS IN THE HYPOTHESIS

The major weakness of the hypothesis is that it has an independent (effectiveness) variable that can be utilized by performing adjustments to evaluate its effect on the other dependent variable but which depends on personal opinion and views which consequently results in statistical biasness. Both of the variables; efficiency and price of cars are dependent on each other. There are too unknowns that can’t be ignored in the establishment of the hypothesis; the market influence comparison is made mainly in Africa and not the rest of the world. There is a probability the high market influence by Toyota in Africa is due to company market preference. The companies could prefer their major markets to be in other world parts whose data is not available. The risk of the hypothesis is that with increased company brand equity without increased efficiency may result its market influence and sales which causes a direct contradiction of this hypothesis (Epstein, 2011).

IMPACT ON BUSINNESS

Reliability in fuel efficiency of automotives reduced the cost of operation of the products attracting more consumers that leads to market expansion and immerse investment of the company to produce more sales.

Some branding strategies such as bribing for publicity and public lies on fuel consumption and automobile efficiency may lead to negative impacts on the marketability of the products as experienced by the Volkswagen and Mitsubishi respectively (Siegel, 2008).

PRELIMINARY RECOMMENDATIONS

  • Automobile companies should aim to increase car efficiency by adopting technologically viable strategies that reduce cost of car consumption while increasing car efficiency on speed and durability in order for them to attain the desired market influence and sales (Hess, 2007).

  • The materials used for the production of the automobiles to be made of high quality, reduced weight and easily repairable. Automotive repair expenses considerations are observed by consumers before making purchases. High quality reduces the rate of repairs and reduced weight increases ease and effectiveness of automobile navigation (Clarke, 2013).

  • Increase in car comfort by customizing automobiles according to consumer demands. Computerised cars with high efficiency and reduced market prices increase the market demand, equity and sales for the automobile production company. Customization such as fixing of radar systems for accident detection and prevention and camera detectors of lane drifting can be incorporated to increase company competitiveness.

Bibliography

Baisya, R. And Das, G. (2008). Aesthetics in Marketing. Los Angeles: Response Books.

Bercker, H.(2012) Corporate strategies of automotive manufacturers. Washington, D.C: The administration

Clarke, S. (2013). Trust and Power. Cambridge: Cambridge University Press

Epstein, S. (2011).The impact of competitive marketing strategies on market share leadership. Ottawa: National Library of Canada.

Hagerman, M. (2008). Automobile marketing strategies, pricing and product planning. Washington, D.C:The office.

Hess,A. (2007). A comparison of Automobile Demand Equations. Econometrica 45(3),p.683.

Shin,N.(2014) Strategies of generating e-business returns on investment. Hershey, PA: Idea Group.

Siegel,H.(2008). Automobile marketing strategies. Washington, D.C.: The Administration.