New Product Created Is an Addition to

New product created is an addition to an existing line of products that serve a range of clients in the automobile industry. The core business of the company is the manufacture of custom made light weight automobiles guided by advances in technology. The firm has faced stiff competition from other automobile manufacturers venturing in light weight automobile industry. Operations have turned to be difficult in the recent years leading to increases in operations.

Five years back, the firm enjoyed sustainable control of light weight automobile and had specialized in the manufacture of vehicles only when demand has been placed. Given this development it is prudent that the firm considers introducing manufacture of heavy trucks in their product range. This will mean an adjustment in the market target for the firm as well as a change in the marketing strategy. Need for the product The market of light weight tracks has dwindled owing to the increase in competition and the high cost of transportation.

Transporters are making preference transporting commodities in large quantities to offset the unit cost per load. In the market, there are also fewer manufacturers of heavy load trucks. Most of the trucks are imported and even in cases where manufacture is made in the region, they are not custom made. This creates an edge for our company to enter into the assembly of heavy load trucks, bridge the gap and meet most of the customer needs.

By locally assembling the heavy, we intend to cut cost of importing for the transporters and provide customizing services. External environment There has been a considerable shift in heavy track demand, and the firm feels that the demand for their new product with the additional customizing service will ensure sustainable demand. The transporters will also embrace the new products customized locally since parts are readily available and cost for those parts will be lower.

Effects of macro-environmental forces The company enjoys a good rapport from the local who feel that it considers customer needs as well as offers competitive service and products in transport. The governing institution will require that company improves on its social responsibility owing to its operational expansion and increase in environmental degradation. The firm will also be required to increase its capital base to accommodate operation. Applications for standards evaluation associated with heavy tracks manufacture will also be done. This is a legal requirement that the company will have.