Analysis of the Environment
The automotive industry is highly competitive and a significant contributor to the United State’s economy. It is a pillar in providing millions of jobs on a global scale and contributes almost 3% to global GDP. This industry in many countries also provides people with a higher standard of living because it enables mobility in a comfortable and safe manner. With increasing population globally, the consumer demand on vehicles is also on the rise. The industry demand can vary hugely year to year not only by population but depending on the increase price of gasoline and a possible weak U.S. economy. Economic conditions such as availability of credit and fuel or the cost of purchasing and operating trucks and cars is also a significant factor when considering demand. Because of these factors, …show more content…
With advancing technology and increased fuel prices, consumer demands towards environmentally friendly vehicles can increase. This is an advantage to Ford because their hybrid engines with ECO boost technology will become an attractive product to meet consumer demand. Introducing more strict emission standards by the government will also offer opportunities to automakers with ease for those already meeting standards with the development of more fuel efficient and green cars. Consumers become aware of the negative impact of fuel inefficient cars that send large quantities of CO2 into the environment. This is a huge advantage for Ford which invests large amounts of money to produce fuel-efficient engines and has had some success with its Ford Fiesta and Ford Focus ECOnetic models. There is also opportunity for automakers to enter into new markets by making strategic partnerships with other automotive firms. Alliances can make research and development costs decrease and offer a win-win opportunity for all parties by gaining some new
The automotive industry is highly competitive and a significant contributor to the United State’s economy. It is a pillar in providing millions of jobs on a global scale and contributes almost 3% to global GDP. This industry in many countries also provides people with a higher standard of living because it enables mobility in a comfortable and safe manner. With increasing population globally, the consumer demand on vehicles is also on the rise. The industry demand can vary hugely year to year not only by population but depending on the increase price of gasoline and a possible weak U.S. economy. Economic conditions such as availability of credit and fuel or the cost of purchasing and operating trucks and cars is also a significant factor when considering demand. Because of these factors, …show more content…
With advancing technology and increased fuel prices, consumer demands towards environmentally friendly vehicles can increase. This is an advantage to Ford because their hybrid engines with ECO boost technology will become an attractive product to meet consumer demand. Introducing more strict emission standards by the government will also offer opportunities to automakers with ease for those already meeting standards with the development of more fuel efficient and green cars. Consumers become aware of the negative impact of fuel inefficient cars that send large quantities of CO2 into the environment. This is a huge advantage for Ford which invests large amounts of money to produce fuel-efficient engines and has had some success with its Ford Fiesta and Ford Focus ECOnetic models. There is also opportunity for automakers to enter into new markets by making strategic partnerships with other automotive firms. Alliances can make research and development costs decrease and offer a win-win opportunity for all parties by gaining some new