Ford Hybrid Case

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(1) Summarize and justify alternative scenarios (i.e., compelling stories about the future) ranging from pessimistic to optimistic with regard to market performance of hybrid cars.

- Electronic Fuel Injection: This scenario is an optimistic scenario for hybrid cars adoption. In this scenario 100% of the market will eventually adopt the hybrid car. This scenario predicts that the growth will start out slow, until there is a breakthrough in technologies that make the hybrid car even more efficient and affordable to the struggling class. When the breakthrough occurs there will be an accelerated growth and eventually the hybrid car will become the norm with 100% of the market will be adopting the car.
- Solar Energy: …show more content…

Inflation and rising prices across the United States will help grow the market, because consumers will try to lower their transportation cost to fund other parts of their expenditures.

- Market price of elasticity is set at the highest position of 0.5%. This is because of how price sensitive the automotive market is to begin with and combining it with consumers who are trying to save the most money possible when moving to more efficient modes of transportation. The high price of hybrid vehicles makes people less likely to buy them, and as the manufacturers and government agencies pass cost savings to consumers, there will be more penetration.

- The hybrid vehicle is not entirely new to the world, but it is also not entirely saturated either. We set the advertising coefficient at 1% to reflect an average amount of penetration through advertising. There is often limited stimuli for a consumer and the amount of advertisements by other manufactures are only increasing. Consumers might be overexposed to these car ads. We reflect an average amount of penetration through advertising through this coefficient.

- The price coefficient is set at the maximum 4% because of how price sensitive the automotive market is. Everyone bargains deals and takes advantage of special pricing and financing. Hybrid buyer market is no longer occupied by the same type of people; people are now chasing prices and maximizing the

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