Automotive Industry Assessing the Social essay

Download this essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from essay:

While the political climate is not nearly as turbulent and disruptive as the auto industry, the fact remains that this industry that thrives on disposable income and the availability of easy credit, both of which are constrained by current economic conditions.

Opportunity and Threat Analysis

The greatest opportunity for the industry today is in creating more energy-efficient, highly customizable cars that also meet the needs of car buyers who want eco-friendly engines that have very small carbon footprints (Oliver, Lee, 2010). The broader trend of mass customization, where consumers are dictating their own brands or personas by their purchases, has invaded auto marketing and car buying. To make this selling strategy effective however, the supply chains of auto manufacturers must be synchronized to build-to-order requirements. The entire value chain of the industry is going through a shift due to this requirement today.

The greatest threat to the industry is consumer confidence coupled with too much dependence on foreign oil by westernized nations. The lack of consumer confidence is hurting sales today and has begun to change long-term behavior with regard to auto purchases. The threat of oil prices however is a much longer-term threat that is estimated to reach its apex in another 70 -- 80 years. Forward-thinking auto companies are using these facts as a catalyst for innovation and the creation of entirely new vehicle and engine designs. The threats of gasoline prices over the long-term are real, and it is very fortuitous for the industry that consumers are now more focused on the environment than on driving a huge vehicle that guzzles gas for the sake of status.


The auto industry needs to re-think its role in consumers' lives and redesign its entire value chain accordingly. The focus on smaller, more easily custom-configured cars through the build-to-order process needs to become a priority as is the need to invent entirely new engines and technologies to minimize environmental impact of their operation. Cars are very much of a status symbol; it is the second largest purchase many people make with the exception of their homes. The focus on making the car more of a statement of environmental awareness is already happening, as many celebrities only drive the popular hybrid models, with the Toyota Prius being their favorite.

The marketing of cars will go through a massive shift over the next five as consumer behavior and purchasing patterns continue to solidify. No longer will cars be sold based on the technical merits alone or just their aesthetics; cars will be increasingly sold for the environmental contribution they make will giving customers the chance to make a statement of what their values are. If the auto industry can redesign itself and in so doing architect its direction on these factors, it will continue to grow. The need for massive change to the value chain, from supplier enablement and knowledge sharing to the customization process and selling all are changing at a very rapid pace today and will into the future.


Bernoff, J., & Li, C.. (2008). Harnessing the Power of the Oh-So-Social Web. MIT Sloan Management Review, 49(3), 36-42.

Bilek, G. (2010). The Value of Information Sharing in a Build-to-Order Supply Chain. The Business Review, Cambridge, 15(1), 131-136.

Jeffrey H. Dyer, & Nile W. Hatch. (2004). Using Supplier Networks to Learn Faster. MIT Sloan Management Review, 45(3), 57-63.

Jeffrey H. Dyer, & Kentaro Nobeoka. (2000). Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal: Special Issue: Strategic Networks, 21(3), 345-367.

Gaylord, S.. (2010). From Windfall to Curse? Oil and Industrialization in Venezuela, 1920 to the Present, Latin American Politics and Society, 52(3), 176-179.

Henriksen, B., & Rolstadas, A.. (2010). Knowledge and manufacturing strategy-how different manufacturing paradigms have different requirements to knowledge. Examples from the automotive industry. International Journal of Production Research, 48(8), 2413.

Herrmann, A., Henneberg, S., & Landwehr, J.. (2010). Squaring customer demands, brand strength, and production requirements: A case example of an integrated product and branding strategy. Total Quality Management & Business Excellence, 21(10), 1017.

Ili, S., Albers, A., & Miller, S. (2010). Open innovation in the automotive industry. R & D. Management, 40(3), 246.

Joongsan Oh, & Seung-Kyu Rhee. (2010). Influences of supplier capabilities and collaboration in new car development on competitive advantage of carmakers. Management Decision, 48(5), 756-774.

Jason D. Oliver, & Seung-Hee Lee. (2010). Hybrid car purchase intentions: a cross-cultural…[continue]

Cite This Essay:

"Automotive Industry Assessing The Social " (2010, September 29) Retrieved October 23, 2016, from

"Automotive Industry Assessing The Social " 29 September 2010. Web.23 October. 2016. <>

"Automotive Industry Assessing The Social ", 29 September 2010, Accessed.23 October. 2016,

Other Documents Pertaining To This Topic

  • U S Automotive Industry Chosen Industry Automotive Industry

    U.S. Automotive Industry Chosen industry: automotive industry is the focus of this analysis. More emphasizes are made on the large -- scale automobile manufacturers. This is because of the inherently interesting industry as a result it being competitive and projected to go through a major restructuring due to globalization in the near days to come. The issue of decreasing oil reserves is the other reason that is going to trigger this

  • Oil and Gas Industry in

    A large body of literature has treated many different aspects of these influences on Asia, Europe and the United States (Busser & Sadoi, 2003). The importance of the study relates to the current trends taking place in Libya where aggressive steps have been taken in recent years to normalize relations with the international community. For example, Libya opened up its programs to develop weapons of mass destruction to international

  • Trade Show Industry in Germany

    Therefore, this study is significant because it explores a very important channel of marketing and communication in the B2B market. The study is important for a second reason that international trade is becoming a cause for concern after the global recession. The economies of various countries have been affected after a decline in their purchasing power. It is said that economic recovery is possible through an increase in trade and

  • Effect of Downsizing on Manufacturing Industries

    downsizing on Manufacturing Industries The amount of information on the effects of down sizing on manufacturing was not plentiful, however one main point that flows through all of the articles is that even though down sizing may be done to help a company it can end up hurting them in the long run. In the paragraphs to follow we look at the effects that downsizing has on people and companies

  • Lobbying Behind the Auto Industry

    " (Tripathi, Ansolabehere, and Snyder, 2002) Additionally, groups that place emphasis on lobbying tend to may more attention to the position of power that members hold inside Congress and pay less attention to the electoral circumstances of member than do other groups and as well groups that place emphasis on lobbying "also appear to be more bipartisan and less ideological than other groups, giving more equally to both parties and more

  • Jaguar Motors

    Jaguar Land Rover Automotive PLC Company Profile: Jaguar Land Rover Automotive PLC is a British multinational corporation that designs, develops, manufactures, promotes, and sells automobiles under the brand names of Jaguar and Land Rover, including Range Rover brand. Jaguar Land Rover is the United Kingdom's largest automobile corporation that took its roots from a couple of strongest automobile brands: Jaguar and Land Rover. Currently, Jaguar Land Rover Automotive PLC is a renowned

  • Pest Analysis of Sears in

    Social Issues Social factors relate to assessing the social, cultural, demographic, and environmental profiles of addressable markets (Sears, 2011). These trends are shaping the way Americans live, work, produce, and consume. Such a dynamic society gives Sears the opportunity to be a trendsetter in its various product categories. Sears currently faces many threats from many different retail chains like Wal-Mart and Target. These stores are beginning to offer customers a single

Read Full Essay
Copyright 2016 . All Rights Reserved