Environmental Challenges Facing the Auto Industry in America
The automobile industry in America has seen tremendous growth and unmatched success since the inception of manufacturing vehicles. There has been over the past few decade’s moments of extreme decline followed by recovery. These declines have been due to specific environmental forces that put strains on the economic success of the industry. Henry Ford founded the Ford motor company in 1906. The pride and joy of his innovations was his beloved Model T which was put into production in 1908. The Model T was the most revolutionary invention of that era. That vehicle transformed human means of transportation forever. The sale price of the vehicle dropped drastically as Ford introduced the assembly line form of production. With lower costs, the vehicle became affordable by most middle class citizens. In the years the followed, Ford found itself struggling in a market they created. They suddenly had competition. Unfortunately, CEO Henry Ford had no intention of changing what he thought was the best, most reliable vehicle ever created, the Model T. In 1912, Ford and his family went on a European vacation. Upon their return, Ford’s employees had made a modification to his treasured T. They essentially made a “low-slung” version of …show more content…
The Model T was the first real option given to consumers, but like any other product, consumers become bored easily. They begin to search for something newer, better, faster, etc. Who better to tell a consumer what is newer, better or faster than advertisements? One of the biggest impacts by competition on any business is the company’s spend on advertisement. Making a customer feel like they are being underserved by their current vehicle creates dissatisfaction. This leads to an attempt by the consumer to be happier. One thing leads to another and the competition is one customer
The automobile industry in America has seen tremendous growth and unmatched success since the inception of manufacturing vehicles. There has been over the past few decade’s moments of extreme decline followed by recovery. These declines have been due to specific environmental forces that put strains on the economic success of the industry. Henry Ford founded the Ford motor company in 1906. The pride and joy of his innovations was his beloved Model T which was put into production in 1908. The Model T was the most revolutionary invention of that era. That vehicle transformed human means of transportation forever. The sale price of the vehicle dropped drastically as Ford introduced the assembly line form of production. With lower costs, the vehicle became affordable by most middle class citizens. In the years the followed, Ford found itself struggling in a market they created. They suddenly had competition. Unfortunately, CEO Henry Ford had no intention of changing what he thought was the best, most reliable vehicle ever created, the Model T. In 1912, Ford and his family went on a European vacation. Upon their return, Ford’s employees had made a modification to his treasured T. They essentially made a “low-slung” version of …show more content…
The Model T was the first real option given to consumers, but like any other product, consumers become bored easily. They begin to search for something newer, better, faster, etc. Who better to tell a consumer what is newer, better or faster than advertisements? One of the biggest impacts by competition on any business is the company’s spend on advertisement. Making a customer feel like they are being underserved by their current vehicle creates dissatisfaction. This leads to an attempt by the consumer to be happier. One thing leads to another and the competition is one customer