scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 2,082
Competitive Environment In the near term the environment in the European automobile market appears bleak and may result in a shakeout that increases pressure for change on European manufacturers Many of the changed environmental factors are the direct or indirect result of the superior manufacturing capabilities of Japanese and other non-European firms Competitive Environment Bleak 1 The market has grown only slowly in the past two years and is more than 10 per cent below the 1991 high sales Exhibit 3 2 Profit levels are at cyclical lows 3 Manufacturing capacity utilization is low - around 75 per cent European Manufacturer under Pressure 1 Asian competitors have been gaining share at the expense of European producers Exhibit 3 2 Japanese voluntary export restraints are scheduled to expire soon In European markets without restraints Japanese producers have significantly higher share than in markets with restraints 3 Customer satisfaction levels are generally lower for European manufacturers Exhibit 4 4 European producers appear to seriously lag Japanese and American quality and labour efficiency levels Exhibit 5 Impact of Manufacturing Capability 1 Improved manufacturing techniques have been responsible for the simultaneously superior quality internal and external and superior manufacturing efficiency and costs of non-European producers 2 Increased plant productivity made possible by improved manufacturing contributes to over-capacity problems by getting more production from fewer inputs Pininfarina and Niche Producer Position Niche Producer Advantages 1 Lower fixed costs provide lower overall costs when volumes are low 2 Niche producers can respond more effectively to volume fluctuations 3 Niche producers often bring product and design skills and superior reputations Potential Threats to Niche Producers The spread of more efficient production and producers has raised at least two potentially serious problems for niche producers 1 Traditional niche manufacturer customers eg Peugeot Fiat for Pininfarina who themselves are experiencing considerable erosion of sales may have less business to offer 2 Since with the improvement in
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA