Big Drive Auto Case Analysis

1500 Words 6 Pages
Register to read the introduction… “GDP gaps inflationary pressures and cannot be sustained indefinitely” (McConnell, p. 526). Therefore, if GDP and pricing is not controlled the aggregate demand for Big Drive Auto goods and services will increase faster than the supply, causing prices to go higher. In order for Big Drive Auto to provide customers the perks, discounts, and high-level of customer satisfaction it is imperative to monitor GDP for clear indication of recession or inflation. Monitoring U.S. GDP will provide a calculation of net exports, consumer consumption, and government outlays. Following the economic levels of GDP is a vital tool in providing Big Drive Auto an economic future and assurance to exhibit pricing strategy and policy recommendations. [pic] Pricing is a major component to marketing, realizing profits, and the gaining of market share. The pricing strategy Alpha recommends would position Big Drive Auto to any drastic GDP changes. Implementing the pricing strategy structure will enable Big Drive Auto to survive in any economic cycle. These series of steps are interrelated to determine an efficient pricing strategy dependent on GDP levels: • Estimate the demand …show more content…
The credit market is a general term for the huge marketplace where all credit securities are traded. According to Investopedia, “Credit Markets are broad markets for companies looking to raise funds through debt issuance. The credit market encompasses investment-grade bonds and junk bonds, as well as short-term commercial paper” (Barnes, 2010). With the interest rate at a low for Big Drive Auto; the company can focus on a strategic plan implementation to maintain their competitive edge in the industry. The mentality of the average customer of Big Drive Auto is to spend less and get the best quality. In a final recommendation of the business decisions for Big Drive Auto will be based in the areas of trade and specialization. Technological influences aide in providing different advantages in trade and specialization. Big Drive Auto uses the Internet as a worldwide communication network which publicizes and advertises the company’s specials, services, and vehicles for sale. “When consumers arrive at a dealership, they know exactly what they want and they’re looking to get the best deal” (Viswanathan, Kuruzovich, Gosain, & Agarwal,

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