Running Head: Mkt 405 Mid-Term Project Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Background

The automobile industry in the United States began its operations in the late 1890s where it produced cars domestically, and with the increasing demand of automobiles, it turned out to be one of the largest industries in the world. In the 1980s, the dominance of United States automobile industry was overtaken by Japan, and ten years later in 2008, taken over by the Chinese market (Healey, 2000).

The United States automobile market is ranked second in terms of being the largest manufacturer in the world with respect to volume, where almost 8 million cars are manufactured every year. The production,however, went down during the global financial crisis where the figures went down to 5 million cars. Nonetheless, these figures since the recession have gone on to 13 million cars annually in the United States.

The major players in the automobile industry for the United States have been General Motors, Ford and the Chrysler. After the Great Depression and the World War II, United States automobile industry was producing nearly three quarters of the worldwide production of cars c

The estimated production by the United was almost, 8,005,859 cars annually. The industry was hampered with growth in the year 1970 when the oil prices started to shoot up and the foreign competition in the automobile industry started to increase.

Hybridand electricautomobiles in the United States

Hybrid and electric vehicles in the United States stand second to Japan in terms of the yearly production. The production of hybrid and electric vehicles for the United States started in the year 1999, a total of almost 3,540,1999 hybrid electric vehicles and SUVs have been sold by the United States until 2014.

The overall cumulative sales figure for these cars since the year 1999 has passed the market of 2 million by the end of 2011, this amount totaled to 3 million in the 2013. The major cars that have been able to increase the sales of the company or the major hybrid brands have been Toyota Prius which has been the number one selling hybrid electric car in the United States.

The total market share of Toyota Prius has been almost 49 per cent in the United States. Other major vehicles that have been able to accumulate sales for the hybrid industry of the United States have been Toyota Camry Hybrid, Honda Civic Hybrid. The two cars have also been able to accumulate sales and make strong market share for hybrid electric vehicles in the United States.

The state of California has been the state that has been able to sell maximum number of hybrid cars in the United States with a total of more than 55,000 cars sold in the year 2009. After California, the states of New York and Florida have been the states that accumulate maximum sales through hybrid electric vehicles in the United States. The District of Columbia has been able to sell quite a large number of hybrid electric vehicles

II. Major Industry Competitors

Bargaining Power of Buyers: High

The bargaining power of buyers in electronic hybrid vehicle industry is quite high. The reason is simple; the number of hybrid cars manufactured in the industry is ranged in different price scales which makes it difficult for the auto manufacturer to quote higher prices. Along with this, after the phase of recession, the market has become price sensitive (Cheryl, 2011).

Running Head Mkt 405 Mid Term Project Case Solution

Similarly, the technology offered to customers makes the industry highly competitive for the buyers in the industry. Price of hybrid cars isreasonably higher, but still competitive for the buyers to actually purchase them.

Bargaining Power of Suppliers: Low

The bargaining powerof suppliers in the automotive industry is quite low. The reason is simple; it is low because the number of suppliers in the industry is quite high. The manufacturers look to outsource most of the manufacturing to different countries and suppliers that can offer lesser and cheaper prices. For instance, since the emergence of the Chinese market, the control of suppliers has become quite less because of the cheaper rates offered by these suppliers..................

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