Automotive Industry : A Car Segment Of The Automobile Industry

2129 WordsApr 7, 20169 Pages
NAME AND DESCRIBE THE ORGANIZATION’S INDUSTRY Tesla’s competing in the entire automotive industry. The automotive industry is comprised of General Motors, Toyota, Ford, Fiat Chrysler, Hyundai-Kia, Honda, and several others in the industry. Tesla has carved out a unique niche in the electric vehicle segment of the industry achieving 4.5% of the automotive market. DESCRIBE THE DOMINANT ECONOMIC CHARACTERISTICS OF THE INDUSTRY (THE MACRO ENVIRONMENTAL ANALYSIS) Regulations and laws are passed by government agencies. The automotive industry is one of the most regulated industries in the US. The consumer benefits from the safety of the vehicles; however, the cost of the regulations and safety recalls is passed on to the consumer eventually. Emissions regulations continue to increase which is another cost the automobile manufacturers must overcome. The US is still recovering from the Great Recession. People have small budgets with high value demands. While oil prices have dropped in the last year, the cost of limiting emissions is increasing. Electric cars have not hit the price point that most consumers in the low end market are looking for. Most companies now offer unlimited options for consumers to lower the price of a vehicle they want to purchase. Socially, consumers are becoming more aware of the impact gasoline motors have on the planet. Most people would like to have a positive influence on the planet, but their wallet will not allow them to choose the
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