Did you know that all the companies in America have something in common? They are all operating in an environment of forces that create both threats and opportunities for their businesses. These environmental forces, which make up something known as the "macroenvironment", include: demographic, economic, natural, technology, political and cultural. Since the macroenvironment is generally uncontrollable, businesses often must find ways to adapt to the constant changes. For example, over the past few years, the auto industry has been affected tremendously by changes in the technology, natural, and political environments and therefore forced to change their marketing strategies.
The Technology Environment Kotler identifies the technology
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(See appendix A).
How the Natural Environment Has Affected the Auto Industry The increased gas mileage offered by the hybrid car would be increasingly important during the first decade of the 21st century because while technology was increasing so were the prices of natural resources such as oil. Between 2000 and 2006 there was a shortage of crude oil which created fierce competition among the gas companies (Maple leaf web). As a result, gasoline prices skyrocketed to over $3.00 a gallon in most areas of the country. Immediately, the increase had a profound affect on the nation and sparked a change in consumer buying behavior. In fact, a study from Harris Interactive and Kelley Blue Book Marketing Research, indicated that after the steady price increases, 41 percent of in-market car buyers either changed their minds about the type of vehicle they would purchase and were thinking strongly about buying vehicles they normally wouldn't consider. Thirty percent of car buyers also reported that if gas prices continued to rise by even a mere 25 cents, they would buy a more fuel efficient vehicle (Kelly Blue Book). Statistics have confirmed these consumer statements, showing a decline in large SUV and truck sales. By the end of 2004 the GM Hummer sales had declined by 25 percent (Kotler, 97).
How They Political Environment Has Affected the Auto Industry Unfortunately the shortage of oil was not the only concern regarding the
As the gas price is rising up to 140 cents per litre in Canada, many people switch their vehicle to gasoline-electric hybrid car to gain savings from the better fuel efficiency. Many potential consumers for hybrid vehicle and hybrid vehicle owners think that the hybrid system is worth the extra penny due to better fuel economy. However, the realistic is that it has higher maintenance despite of its outstanding fuel economy figures. In fact, the hybrids cause more environmental damage than conventional petro powered vehicles and there are better alternatives. Therefore, hybrids should not be on consumers’ shopping list due to a numerous negative facts that consumers are unaware of.
The price of gas is never a steady price with it changing ever so often relying on other factors. Once again the nation is a reliant force that needs to learn how to be dependent from other countries. Even though there are already some electric vehicles on the road, not everyone has ridden in one. Some customer wants and needs need to be satisfied with the way electric cars are manufactured because “greener and more efficient alone will not ensure a bright future.” Companies will always have to go with what the customer like because if the customer does not like it they will not buy it, and for companies to make money or even for the electric car to start becoming popular the people need to approve it. Another factor of switching is the involvement of the government and how the portray electric vehicles. The government can take action and impose a couple of acts or laws saying that the nation needs to reduce on the amount of pollution or use of oil to “level the playing field” between the two types of cars. If the electric cars need to be impressive to the people and the government so they can become a prosperous in the economy (Sperling). This is a long process that could take years for electric cars to take over the roads and better the future of the
The demand of gasoline has increased steadily over the last twenty years. In 1981 the U.S. averaged 6.5 million barrels of gasoline consumption per day. By comparison, in 2004 the U.S. averaged 9.2 million barrels of gasoline consumption per day. For most of this time period, gas prices stayed relatively the same. This is because the U.S. refineries increased their production to meet the demand and maintain the equilibrium price. Also during this same time period worldwide demand for crude oil increased 27%. Crude oil producers also increased their production to meet the demand keeping prices the same.
Although the rising price may not seem to limit the drivers on the road, it does contribute to the growing problem of debt among the country. Resources for gasoline have taken a plunge over the years because now a day’s more and more people are driving on the road, resulting in more people needing gasoline.
On October 1, 1908, the Model T was made. Around then, there were less than 20,000 cars on the road. Because of this, the oil prices dropped. When this happened, gasoline was more affordable. All this ended when people started buying a different car in 1927.
Drivers realize that the price of gas is tied to the market value of crude oil, and has a direct impact to their daily commutes, errands, and vacations. However the reality is that the price of fuel has implications much grater than most consumers realize. Fuel prices affect nearly everything we purchase. For example, the price of farm commodities and food increase because farmers pay more for the fuel for their farm equipment and trucking firms pay more for fuel to get the commodities to market. These shipping “fuel surcharges” impact all goods
Delivery service is a way of life. Each day, people get packages sent to them by way of this service. But few people think of the costs the delivery company has to deal with. One of the main operating costs that we as a delivery company have is gasoline. We use gasoline daily in massive quantities. The cost of gas affects American’s daily, and people can be heard complaining about the high prices. What about delivery companies? In this paper, we will be discussing the effect of rising gas prices on our company throughout the next ten years.
We've all experienced this before, and for future drivers it is bound to happen. Before driving home after a long day at work, you head to the nearest gas station to find the prices at a hefty $3.59 per gallon. You shrug since the cost last week was a few cents higher, and proceed to fill up your car. With your gasoline capacity at its limit, you drive around the corner only to have your jaw drop when you realize that this gas station's price is thirty cents cheaper than what you just paid for. Then, talking to the empty seat beside you, you ask, “Why do gas stations in the same area charge different amounts per gallon?”
Auto Zone’s industry would be the aftermarket parts industry. This industry would include the wholesale and retail sales of vehicle parts, tools, accessories, and fluids mainly for automotive use. A wide array of stores sell these products either online or at their brick and mortar locations. Some of stores include, Advance Auto Parts, O’Reilly’s Auto Parts, NAPA, Wal-Mart and Amazon.
, clouds and the capitalisation of a person’s information are relatively new concepts in relation to other systems and technologies within society. These older systems; let’s give the example of the automotive industry. The car as we know it today was birthed around the 1900s and has had over a century for laws and regulations to be implemented agreed and tested etc. The same can’t be said for the internet and cloud storage. Laws are ambiguous and sometimes non-existent which leads to major frustration or stress for individuals or companies when something goes wrong or an unethical situation arises. An example would be torrenting websites. These are websites that host links to files which can be downloaded from one computer to another. A completely legal practice however these sites would be considered to aid in piracy and authorities would work to shut them down (e.g. the pirate bay). The same however, could be said for a search engine like google so the law is a bit hard to enforce. We as users of cloud computing and the providers must work together to use the service in an ethical manner. Of course there will always be individuals or groups with malicious intent, but that is why it’s important for everyone else to address these current issues and slowly work new laws into place to protect each other when using services that place our personal information in the hands of others.
The natural environment such as our main natural resource for fueling our vehicles, oil, has aided in the increased sales of the Toyota Prius. Since gas prices increased in 2008, a fuel efficient car such as the Prius is economically and environmentally friendly. Toyota created the hybrid that “combines a gas engine with an electric motor” using less gas than the usual sedan. (Kotler & Armstrong, Principles of Marketing, 2010)
The US consumed 142 billion gallons of gasoline in 2007 and the tax applied on it is 18. 4 cents on one gallon. All around the US, there are around 162,000 retail gasoline outlets. With the price of crude oil hovering around $100 a barrel, it is no wonder that concern is growing about the gas prices being so high. After all, modern economies are kept moving by this lifeblood. For instance, in the United States alone personal vehicles consume more than 140 billion gallons of diesel fuel and gasoline per year.However, there are several factors that contribute to the gas prices being so high. Given below are a few of them. Increasing Demand for Oil One of the main catalysts for the incessant rise in gas prices has been one of the most
The Project assigned to me was “A STUDY ON CUSTOMER SATIAFACTION TOWARDS MAHINDRA&MAHINDRA VICHELES (APR)GAYA
As it relates to the competitive structure, or the number and size distribution of companies within an industry, the automobile industry is considered a consolidated industry, where a small number of large companies dominate and are able to set prices. Traditionally, in America, these companies were called “The Big Three,” Chrysler, Ford, and GM, but Toyota, was also a major rival during the recession. “In consolidated industries, companies are interdependent, because one company’s competitive actions or moves (with regard to price, quality, and so on) directly affect the market share of its rivals, and thus their profitability” (Hill & Jones, 2012, p. 62). The relative power of consolidation on the automobile industry was high.
According to Amighini and Gorgoni (2014), Automobile production is one of the operations in the manufacturing segment of production that is highly spatially disintegrated, characterized by production activities that are broken down into different units and take place in various countries in the world. The production processes are highly dispersed. Amighini and Gorgoni (2014) explain reasons for the dispersed nature of the production system. The automobile industry has been made to implement modern sourcing techniques stemming from the growth in leading-edge inputs in contemporary cars, such as computer and electronic facilities, according to Amighini and Gorgoni (2014). The varying level of technology advancements and innovation has