‘The European Car Market Environment’
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Written & researched:
Amy Walford
For: Stuart Challinor
1/05/05
Words: 4,740
CONTENTS PAGE.
Executive Summary
1. – Intentions of the report
2. – The European Car Market Environment
3. – The Micro-environment: 1. – Suppliers 2. - Distributors 3. – Customers 4. – Competitors
4. – Situation review of the European Car Manufacturing Industry 1. – Comparison to US and Japanese market
5.0 – Drivers of Change
6.0 - The Macro – Environment 6.1 – SWOT analysis 6.2 – Pestle analysis
7.0 – Conclusions and recommendations
BIBLIOGRAPHY
GLOSSARY
RESEARCH PORTFOLIO
EXECUTIVE SUMMARY. • The EU automotive industry is the single
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1.0- INTENTIONS OF THE REPORT.
The purpose of this report is to examine the current European car market through the use of market audits, comparisons with competing international markets and assessment of its progression from past performances.
This report will describe the current state of the automotive industry through using the information gained from industry specific indicators such as employment, R&D investment, legal regulations, exports/imports, labour costs/productivity and value-added implications, in terms of the European market life cycle. This report will focus on the manufacture of passenger cars, but will discuss the automotive industry as an entirety [1].
2.0– THE MARKETING ENVIRONMENT. • The EU is the largest automotive production region (34%) in the world and the industry contributes 7.5 % [2] to the manufacturing sector in the Union. Direct employment by the automotive industry stands at about 2 million employees, while the total employment effect (direct and indirect) is estimated to be about 10 million. • Since 2001, motor vehicle production has decreased 17.2 million units to 16.9 million units in 2002. The decline continued into 2003, with 70,000 less motor vehicles being produced, compared to 2002. The decline since the year 2000 is basically due to the worsening of the macro-economic situation where consumer demand has been decreasing. • Its importance as a contributor to international and
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While car manufacturing is a global industry, automotive companies such as JLR operate in broader regions such as Europe and Asia. Three major trends were identified affecting car production in mature markets, the first was the fragmentation of mature markets, customers were demanding more choice, and this has made it difficult for manufacturers to obtain economies of scale, so cost had to be reduced and with the general
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bikes, trains, or to carpool to go to work or to school. This is a big threat
EXECUTIVE SUMMARY ........................................................................................................................ 1 1. INTRODUCTION................................................................................................................................... 3 2. STRUCTURAL INTEGRITY OF THE AUTO SECTOR ................................................................ 4 3. AN INTEGRATED MARKET ............................................................................................................ 12 4. LONG TERM OUTLOOK
According to market statistical data of General Motor Europe Market share by country and Brand 2001-2003, we have two main conclusions:
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There are four major factors affecting the automotive industry: technology, market, customers and the most influential factor – environment. Environment is a source of materials, infrastructure necessary for manufacturing but everything is limited. The process of car or automotive manufacturing is very complex regarding the usage of numerous resources and different technologies ( P. Golinska & M. Kosacka).
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This report traces the fascinating trajectory of the evolution of cars, and delves into emerging trends shaping the automobile market for future growth. The report highlights major market players, discusses their products, and forecasts the growth of the automobile market through 2020.
The automobile industry is a tough market where competition is stiff. General Motors (GM) is an automobile company that is trying to stay in this competitive market by having different divisions for each car model. Their idea was to gain a market share by introducing new car models that would generate more sales and could save the firm from going out of business. However, GM, not realizing that having many small divisional companies would increase the cost of producing new car models or improving the old car models, failed to increase sales while losing the customer base. Furthermore, the board of directors were picked as the new CEO’s who had already contributed to the decline of sales, which eventually led them to
One of the fundamental literatures on automotive industries is that studied by Komsan in 2009 on “automotive process-based new product development”. This study evaluated the global trends in the industry as far as developing products are
Today, the automotive industry is one the top profitable industries in U.S. and all around the world. More than 1.5 million people involved in different segments such as engineering, designing, ordering, sell, and marketing. As a result of this statement, automotive industry has huge effects on employees, customer support, jobs vacancies, revenue and finally GDP which is the most important part of the economy for any countries (Statista Portal, 2016).
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