Ford Hybrid Case Essay

1811 Words Jul 18th, 2016 8 Pages
EXERCISES

(1) Summarize and justify alternative scenarios (i.e., compelling stories about the future) ranging from pessimistic to optimistic with regard to market performance of hybrid cars.

- Electronic Fuel Injection: This scenario is an optimistic scenario for hybrid cars adoption. In this scenario 100% of the market will eventually adopt the hybrid car. This scenario predicts that the growth will start out slow, until there is a breakthrough in technologies that make the hybrid car even more efficient and affordable to the struggling class. When the breakthrough occurs there will be an accelerated growth and eventually the hybrid car will become the norm with 100% of the market will be adopting the car.
- Solar Energy: This
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market from 2007 through 2016 for each scenario you develop, along with a justification and explanation for your forecasts. (In applying the Bass model, note that market penetration data for the four analog products mentioned in the case, namely, ABS, EFI, Solar, and Diesel cars, were all reckoned in terms of the percentage of the target market that adopted the product. Thus the maximum market potential can at most be equal to 100).

Basic parameters:

-Total market penetration was based off the JD Power and Associates survey saying that 57% of consumers that are in the market for a new car will be considering a hybrid. We felt that this number of potential consumers seemed about right as the trend in rising gas prices and other savings from hybrids is increasing yearly. With this percentage of consumers being on the fence between a hybrid or regular car, it makes it more likely for us because if we are pro-active and do everything right then we can capture those people.

- For the market penetration before period 1, we saw that hybrids have already been in use and are already selling pretty well. We felt that the JD Power and Associates 1.5% of total cars sold are hybrids. This served us a starting period based on the past data they collected. There were not that many early adopters, as this percentage reflects.

- The market growth rate is going to to be 2%, because of the increasing rate of adoption and government regulations for automotive…

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