Essay on Competitive Advantage Within the Automotive Industry

2627 Words Apr 14th, 2012 11 Pages
Competitive Advantage Within The Automotive Industry

Abstract
Within the automobile industry, it is vital that companies adequately compete for consumer sales. With the industry struggling due to the current economic conditions, as well as a push for environmental sustainability, companies have to come up with new competitive strategies. There are 6 major ways that a company can give themselves an advantage over others. They are cost, quality, service, brand, innovation, and convenience. (McCrimmon, 2008) Three automotive companies are compared in terms of their strategies to compete against one another. Ford’s main strategy is on product development and efficient leadership. They use a low-cost strategy to help give a pricing
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Test-driving vehicles allows consumers to first hand compare different products and models with one another and get a feel for the quality of the products that they are purchasing.
Once products are on the market, it is important for a company to maintain its standards, especially once they are set. This forces a company to meet customer demands and surpass expectations.(Lloyds TSB, 2009)
Companies honor quality by providing warranties on their products for a certain amount of time in case there is a flaw within the products. This provides customer confidence within the company in case there is a flaw with the product.

Service
Customer service is a very popular way for companies to compete against one another, especially if the companies offer very similar products or services. Therefore, it is important to maintain excellent customer service. Employees need to go out of there way to make a customer happy, because if the customers are not happy, then they are most likely to take their business somewhere else.
When competing, the company needs to be easy to do business with. There are four major areas that are important to remember when dealing with customer service. Companies need to be accessible to consumers, prompt in order to set standards, use simple systems such as easy outlined automated phone systems…

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