GENERAL MOTORS VS HONDA MOTORS

In addition, it will show how the industry has embraced environmental measures. This report starts by introducing the industry as well as the factors mentioned above. After introducing, industry analysis will be presented and both companies’ strategies will be assessed and compared. Moreover, each company’s future outlook and challenges will be explained while giving proposals. Introduction This industry is been distributed across the whole world within the past century. In order to fully comprehend the leading companies in this industry both current and future, two other companies Ferrari and Toyota strategies will be considered. Toyota is a Japanese company situated in Aichi, Japan. It was founded in 1937 by a person named Kichiro Toyoda. Its structures comprised of 365,000 staff worldwide and in 2017 they record a revenue of about 264 billion.

Ferrari Company was founded by Enzo Ferrari in the year 1939. The kind of competition which exist in this industry is so stiff and varies with market segment since different brands target dissimilar segment. Fourth, bargaining power of customers. It is the norm of every customer to bargain for a lower price and thus making customers price sensitive. Bargaining power usually varies depending on the type of brand. The goal of any company is to build loyalty with their customers on the basis of design, good prices and quality. In general, the performance of any country economically is variant depending on the prevailing economic condition in the area. This is also because the industry spends on purchasing power of customers. This has forced manufacturers to develop low cost care with an aim of tapping market segment Socio-cultural factor is also a macro factor.

This industry is usually influenced by different cultural trends and how people preferences change. Almost every year there is introduction of new product while keeping customer’s preference. Attractiveness varies depending on the market segment. For instance, broad line an wide distribution of cars are the advantages enjoyed by mass production while superior services and good functioning are benefits associated with a luxurious segment The turnover of this industry stands at 1. 8 trillion and revenue par year of 433 billion. These values are always increasingly yearly by 6% Analysis of the firms’ strategies (SWOT) This part will focus on the use of SWOT model to compare and juxtapose both company’s strategies and how they create and maintain their competitive advantage. This analysis is helpful in fully comprehending both internal weaknesses and strengths of a company as well as giving overview of its outward chances and threats.

On the hand they have weaknesses on its different aspects. For the past few years they have shown weak structural management with slow feedback in solving emergencies. They have also been recording weaken brand image over past few years especially with the emergence of china and India in the market unlike other competitor companies. Ferrari have robust brand equity with a rich legacy and heritage as many could classify. Its brand is majorly sorted behind inspirational brands despite inadequate marketing and advertisement. There is a need also to increase the service and distribution network across the globe for it to remain in the market and sustain itself. Success or failure: The two firms in the study will face environmental standards and policies from government if they are to meet the ecological agenda.

This means that they need to invest in this in order to ensure they meet this regulations. Different strategy: The two companies focused on different segments of the industry thus they possess different strategies. Toyota Company focuses on bargaining power forcing its suppliers to follow their rules while concentrated companies’ such as Ferrari poses low bargaining power over suppliers. Success or failure For Ferrari to enter into new incipient market it will have to adjust to meeting customer expectation in different countries in the world. They also face threat on innovation of products from companies like tesla which have started developing very powerful sports car. This is likely to reduce market share of Ferrari. Other competitor companies like Lamborghini and Porsche are busy engaging in product expansion to good performance across the globe especially in emerging countries like India where Ferrari has no plans in place.

Toyota is facing stiff competition from companies such as Volkswagen and Ford thus making it hard for it to maintain high market share. There is a need to further change its structure and culture in order to maximize its tractability in problem solving and decision making process. Ferrari should strategies on producing a more efficient brand as well as ensuring its product possess strong car racing features which can compete with other companies brands such as Porsche SUV in upcoming market. It should also develop a product which will attract new customers. There is a need to form a new division separate from the existing ones which will be in charge of handling brand activities in the emerging market as well as coming up with new manufacturing product for luxury SUV.