There is a stiff business competition environment at the North American International Show (NAIAS). Among the competing motor vehicle dealers, is the General Motors (GM) unveiling the 2009 Chevrolet Corvette ZR1 vehicle, that is promising to be the most powerful, fasted and most economical vehicle in terms of saving fuel. The other motor vehicle dealer, Chrysler LLC also have the plan to demonstrate an environmental splash with their three small motor vehicles at the NAIAS. The Chrysler is also designed in a simple way, with a powerful power-plant that leverages a lithium-ion battery pack, and a small hydrogen fuel cell for a range extender.
The other company doing a demonstration at the NAIAS auto show is the Honda Motor Company limited. The company demonstrates the functionality of a prototype version of the next generation Honda, that is described as having the cross utility advantage (Cetawayo, 2008). The other strong competitors who plan to demonstrate their new brands and improved motor vehicles are the Ford Motor company, the Kia Motors American Company, Land rover Motors, Toyota Motor Sales, and the BMW AG, Co Ltd.
From the above analysis, it is clear that the business Environment at the North American International Show (NAIAS), is faced with stiff competition in the market. According to Irving (2005), it is important that a company comes up with the appropriate strategies, if it is to succeed in the competitive market and enjoy the market advantage. Current Marketing Strategy Most of the motor dealer companies have recruited knowledgeable and skilled professionals for purposes of producing high quality products suitable to meet the needs of the consumers.
For example, the General Motor dealers have expert engineers who have managed to enhance the image of the company by developing the Corvette model. The engineers have developed the chassis manufacturing methods and V8 engine designs, that are used in GM’s full size sport utility vehicles. This in turn results to quality out put for the company and increased profits. One of the strategy adopted by the companies is restructuring of the vehicles so as improve the functionality. This is meant to meet the needs of the customers.
The General Motors Corp (GMC) has come up with a new brand that reduces the use of fuel. This is an attractive measure towards the consumer, whose need would be to reduce cost of fuel. The vehicle is said to be the fastest and most powerful. This is advantageous to the customers who will be able to save time by the using the speedy vehicle. The General Motor dealer has a strategy to capture the future market, because it is stated that the vehicle may recast itself for life up to 2020.
The next company, the Chrysler LLC plans to demonstrate three small electro-powered concept vehicles, the vehicles are made in a simple design, with power-plant that leverages lithium-ion battery pack and a small hydrogen cell for a range extender. The vehicles are meant to target customers who are likely to be interested in small powerful vehicles that are electro-powered, this are definitely fast vehicles with low consumption of fuel. The vehicles have battery that lasts longer, the hydrogen fuel extender enables the vehicle to move for a long distance using less fuel while compared to the normal vehicles.
The Honda company will also demonstrate a new generation Honda, with improved functionality. The vehicle is a pilot mid-size cross/utility. The three companies in planning for their market strategy have used the consumer perspective approach, in order to try and capture the needs of the consumers as the key factor that would help the companies win a competitive market advantage. The companies have adopted new technology in the vehicle industry, in order to meet the needs of the present generation.
This is demonstrated in the various facilities installed in the vehicles in order to develop functionality value. For instance, the Chrysler 2008 ecovoyager vehicle has a power-plant facility that leverages a lithium-ion battery pack, and a small hydrogen fuel cell for a range extender (Box, 2003 Aug 10). These are new technology products meant to improve the utility aspect of the vehicle, so as to meet the demands of the user. As a result of the huge loss established from the operation of the General Motors, as reported by Popely (2008 Feb 13), the company leaders used the downsizing strategy.
This was meant to reduce the number of workers in the company in order to reduce the cost of production, and bring the production capacity down, so as to match the shrinking demands. The company considers reduction of the workforce as a strategy that would help it to realize significant improvement once more. The CNW company uses the method of hiding the model name of the vehicles. The top managers at the company have argued that, domestics typically do very well in this test than when the brand names are exposed to the consumers.
The Auto Show on the other hand conducts itself in a way that consumers are allowed to move from brand to brand, in the hope that they will stumble on the stylish new model introduced in the market by the company. All these work as strategic ways of attracting the consumers and enticing them to buy the company’s products. The Future Marketing Strategy The various corporate leaders need to come up with improved strategies in order to ensure that they are able to enjoy the competitive advantage in the market, despite the stiff competition in the motor vehicle industry (George, 2002).
The companies should ensure that they are able to recruit high qualified professionals who will be able to produce the latest, and high quality vehicles, so as to meet the needs of the future market. The workers should get continuous training so as to keep up with the improving technology. For example, the success behind the Corvette model produced by the General Motors is the employment of skilled and expert engineers who have been able to develop the chassis-manufacturing methods, and V8 engine design which are used in GM’s full size sport utility vehicles and pickups highly regarded trucks.
This model of vehicles are meant to generate a maximum profit for the company. The vehicles are made in a stylish manner, so as to meet the taste of the consumers, and their utility aspect is also effective (Anonymous, 2008). According to Lawrence (2003), company leaders should develop their strategies from the perspective of the consumer needs. The aim of any company is meet the needs of the consumers. It is therefore important that a company is able to know the current needs of the consumers, and the change in taste and fashion so as to produce what is required, hence increasing sales.
Improved technology ensures that the company is able to produce the latest fashion in the market, the product produced is likely to have improved facilities that will improve the utility value, and the result will be that more customers will be attracted to buy the products. A company that is rigid to the changing technology is likely to get outdated in the market. According to George (2002), when the sales of a company reduce, it is important that the company reduces the cost of operation so as to realize profits at the end.
This is done by downsizing. Some of the employees are deployed or given early retirement. Although this is disadvantageous to the employees, it is sometimes necessary in order to save a company from going down. Employee performance measure is one of the good strategies to ensure improved and quality production in a company. The employees who perform well are rewarded while those who do not perform well are encouraged and requested to improve their efforts in order to ensure quality production and increased profits for the company (Lynn, 2004).