Sanger Case Study Essay

When buying a car, 76.5% of consumers in United States say that environmental friendliness and carbon footprint have at least a medium amount of influence on them (Figure 1). In 2011, purchasing an electric car or hybrid car became more frequent among consumers. The percentage jumped from 4.1% in 2009 to 8.9%, and is forecasted to be 17.2% in 2013 (Figure 2). The increasing willingness to make green choices is expanding the market of electric vehicles. As the first

Opportunity: The electric automotive industry and Tesla should decrease both the costs of its batteries and in renewable energy to attract more purchasing customers.

Tesla electric cars first appeared as small, sporty two-seaters. On March 26, 2009, the Tesla Model S was released and marketed as the top-performing all-electric luxury SUV in its class. Considering the Model S’s impressive performance capacities, they make a sound argument. David Ener, writer for Canada’s “The Globe and Mail” newspaper describes his experience of driving the Model S

Although Who Killed the Electric Car focuses on ~50 enthusiasts there is no consistent evidence of high potential demand for the EV1.

In 2016, there were 17.55 million cars sold in the US and electric vehicles (EVs) made up less than 1%, accounting for 150,000 vehicles, – up from 17,500 sales in 2012. EV’s have been slow to capture market share, although their growth may allude to a tipping point in the near future.

Sanger Automotive Companies, Inc. is one of the most successful auto dealers in the United State. In September 2011, the executives met a problem that whether or not to pursue an exclusive franchise for a plug-in hybrid electric vehicle. Plug-in hybrid electric vehicles were in the embryonic stage of the product life cycle. This decision is a complicate one which the executive must find the sufficient evidence to support.

As you can see, the typical buyer of these hybrid vehicles are closer to middle aged, college educated, and typically make above average income. The Chevy Volt stood out with having a predominate male buyer compared to the average overall hybrid buyer which tend to be women according to Edmunds (Loveday, 2014). The target market for these vehicles are not directed towards people who are first time car buyers, high school graduates, or in lower income brackets. This is where the Ecostar will be able to gain a share in the

The company used its human resource particularly the sales people to apply pressure on potential buyers to commit to buying a car. The action destroyed the reputation of the company because there was no leisurely walk at the company’s showrooms. Eventually, the company did not gain any competitive advantage from the actions of its human resource (Mclnnes, 2015).

The subject of electric vehicles has been very popular of late. There have been many articles written, and research done, to scrutinize the on-going use of combustion vehicles while convincing the populous that electric vehicles are the wave of the future for transportation needs. Sales of electric vehicles have proven this true. Over the past five years, the number of electric vehicle sold has increased dramatically. According to the Electric Drive Transportation Association, in 2010 the number of Plug-In vehicles was only 345. The number of Plug-in vehicles -

With the advancement of technology, electric cars like the Tesla Model S and the Nissan Leaf can travel to very far locations strictly using electricity. The Tesla model S has a range of roughly 300 miles. The Nissan leaf has a range of 126 miles per gallon. With zero gas consumption and not having to visit service shops for oil changes. The rechargeable batteries used by electric cars are nearly 98% recyclable, which eliminates battery disposal problems. Although you will spend more on an electric car, the amount of money you save on gas and maintnence repair will keep your money in your pocket. The government actually offers a $7,500 tax credit for every person who purchases and electric car. Even when electric cars are powered coal fired energy, they still produce 40% less gas emissions than fuel powered cars. “ We need more electric vehicles on the road,” says the Senior Program Manager for Environment America’s Global Warming Solutions. It is a necessity for our leaders and the car industry to create electric cars that are as cost efficient and convenient as cars that run on oil. The technology needed to produce electric cars is available. Car companies must use this technology to produce a wider model market for them. All car companies should work together rather than compete against one another to replace traditional gas powered cars. Nissan,

The central strategy recommended to Nighthawk Motors for acquiring B2B customers is offering of cost reduction. Effective cost management requires “resources and process discipline to enable and ensure the highest possible level of quality, reliability and productivity at the lowest overall cost” (Elliott, 2004). This strategy will apply to sales to governmental agencies, for profit companies, and institutional markets. The goal is to brand the Ecostar as the leading hybrid plug-in vehicle with biggest cost saving for these organizations. All the three tiers of government—federal, states and local agencies—provide excellent opportunities that Ecostar can excel in. In 2015, the U.S. federal, states, county, and local government operated over

With the introduction of Hybrid vehicles the market for electrical vehicles are beginning to gain a foothold in the American market. This technological transition will impose awareness to provide further insights towards consumer understanding and to which will increase the acceptance of new technology (Broughton, 2011).

The launch of Tesla Motor’s Model 3 vehicle took place in March of 2016. This newly engineered, high powered vehicle is projected to be the foundation for Tesla’s marketing strategy for the up coming year. The Model 3 stands as the “turning point for the company, vaulting the young automotive brand into a new market: middle-income buyers” (Kiley). While the all electric vehicle is similar to its predecessors, the Model X and the Model S, the Model 3 is significantly less expensive. The Model 3 is $35,000, while the Model X is priced at about $75,000 and the Model S at approximately $135,000 (“Car and Driver”). The target consumer sales market of this vehicle is the entire middle class and millennials. Elon Musk, the CEO of Tesla, is working to produce a significant number of vehicles in a limited amount of time, so an affordable, yet energy efficient vehicle can be available to every strata of the middle class, as well as to environmentally conscious, forward thinking buyers.

When releasing an electric car, all car manufactures face the risk of ‘selling the unknown’ to consumers (Brownsell, 2010). Although the electric car concept is never a new word to us, real electric car products are still unfamiliar to most consumers, especially comparing to conventional vehicles, which have already affected our life over 100 years. Doubts like ‘how far it can drive with a fully-charged battery’, ‘how safe the battery is’ etc. are still existing and those slow down the process of accepting. Gatignon and Robertson (1985) states that the perceived risk may produce negative influence on the rate of product adoption. When consumers feel uncertain about a new product, they will be reluctant to consume it in order to avoid the potential risk. Considering this issue, BMW worked out the Mini E field trial before the launch of BMW i3.

When you start looking for a new car, it can be little daunting at first. There are hundreds of manufacturers to choose from; each offering the latest deals on finance and upgrade packages. In recent decades, there has been a lot of choices on the kind of cars to choose from, like hybrid, SUV’s, and compact cars. All the cars have advantages and disadvantages depending on how you plan to use the cars whether it’s for business or personal use. There are a lot of things you have to think about before you decide which kind of car to buy. Gas mileage, impact on the environment, what the automobile is going to be used for, and how much maintenance and upkeep will cost. Safety, quality of engine, and driving convenience are some of the things to be taken into consideration before making the choice, especially when the automobile is for business use.