Current Market Conditions Competitive Analysis
In 1903, American industrialist Henry Ford started a company that revolutionized how the world moved. With $28,000 in his pocket, Ford Motor Company was born. Today, it has grown to be the world’s third largest automaker, and the largest family-controlled company that has been in family control for over 110 years. Throughout the existence of Ford Motor Company, their success would not have been possible without knowing and understanding certain factors that affect not only the supply and demand, but also the equilibrium prices in the automobile industry. Every organization within the industry faces the same issues and opportunities that may ...view middle of the document...
Ford is excited to introduce the Alpha, the first car specifically designed with first time drivers in mind. Several safety features are standard in the Ford Alpha such as My Key, which prevents the car from starting if the seat belt is not fastened and allows the parents or administrators to control radio volume and mileage radius. Additional features include BLISS- blind spot mirrors, GPS tracking, front, side, knee and rollover airbags, and a back up camera. Ford also realizes that economy and style are also important features.
Because of the many safety features included in the Alpha, buyers will qualify to receive a discount on insurance premiums. Enforcement of seat belts within the U.S. has improved the safety and well being of vehicle drivers and passengers. The Alpha makes it mandatory for drivers to wear their seatbelt. The Alpha will be available in a wide range of exterior and interior colors and buyers will be able to mix and match to create the perfect color combination. Even though the Alpha is sporty in appearance, insurance companies do not consider it a sports car. The strategic planning group feels there is a need for a car designed specifically for first time buyers.
Supply, Demand, and Equilibrium Price Factors
Sales in the car market have gradually started to increase. The recession caused a negative shift in the demand and the supply of automobiles, however an increase in the labor market has created an increase in the demand for automobiles. Consumer confidence and motivation are a driving force behind an increase in demand. Most economists have high expectations for continued economic recovery. Ford’s vehicle prices are extremely competitive. The standard features, quality and extended factory warranties have made the purchase of a Ford even more desirable. Since the recession, consumer purchases of American brand cars have increased. Low interest rates and cash incentives attract consumers to buy American brand cars.
The supply of automobiles has responded...