COMPARATIVE ANALYSIS OF AUTOMOBILE INDUSTRY OF USA AND JAPAN

Comparative Analysis
The item-by-item comparison of two or more

comparable alternatives their processes, products, qualifications, sets of data, systems etc... In accounting, for example, changes in a financial statement's items over several accounting periods may be presented together to detect the emerging trends in the company's operations is known as comparability analysis.

Key success factors

Maintain Close Relationship between Manufacturing

Operations and IT. manufacturing plants continue to become More complex Networked and Collaborative Build strong relationships with the manufacturing engineers. Design for the Future, instead of an incremental approach (planned incorporation) Global solution in form of new challenges. When advanced networking expertise was required, engineers play most important part.

General Motors STRATEGY

Implement innovative and proven marketing techniques. Raise market share to number one position. Remake Corporate Image as a leader by acting rather than re-acting. . Loss of market share over the past two decades is due to the diminished image of GM in the marketplace.

Toyotas Strategy
Increase competitive strength through

advanced technology

Environmental technology fuel consumption, emission, recoverability

Hybrid vehicles and next generation fuel cells Cost-reduction efforts discontinuation, integration of older models

Increased emphasis on financial services and

information communication system

Toyota Production System Key Main Concepts

SMED Single Minute Exchange of Dies 18 hours for one car. (Promoted flexibility of production runs) JIT Just In Time manufacturing (Small batches which reduced inventory costs, tightened relationship with suppliers and improved quality control)

STRENGTHS
Large MARKET SHARE
TECHNOLOGY POTENTIAL NEW LEADERSHIP QUALITY IMPROVEMENT MODEL ACCEPTANCE HAS IMPROVED(hybrid

cars) BENEFITS DERIVED FROM A NEW STRATEGY STRUCTURE APPORACH AND RELATIONSHIP. (E.business strategies)

WEAKNESSES
Failure To Make Technology Work
Too Much Vertical Integration Bureaucratic Culture Relationship Of Strategy To Structure Product Design Problems - Public Acceptance And

Reduction Of Cycle Time Market Share Vs. Profitability Negative Effects Of Downsizing Still Much To Learn to become low Cost Producer

OPPORTUNITIES
Like TOYOTA joint venture, there are much more

to learn. EXPANSION OF THEIR GLOBAL PRESENCE CONTINUE TO BUILD their CUSTOMER CONFIDENCE. CHANGING CONSUMER DEMAND FOR NEW MODEL TYPES AND STYLES (EXPANSION AND LEADERSHIP)

THREATS
They have DOMESTIC AND FOREIGN

COMPETITION U.S. FEDERAL LEGISLATION AND REGULATION CONSUMER LAWSUITS FOREIGN LEGISLATION AND REGULATION DECLINING QUALITY OF THE INFASTRUCTURE IN THIS COUNTRY

SWOT
Strengths Strong Partnerships EPA Global 500 Award #1 of Japanese Producers SUVs (sport utility vehicle) Weekness Poor Website (E. strategies)

Continued
Opportunities Hybrid Engines Matrix Threats Consumer Confidence Competition is huge in this industry. Recession

Threats are same

Competition is huge
Countrys internal competition is more tougher Threat of recession is very challenging.

Companies Price Ford 16.21

Mkt Cap 29.4

P/Sales 0.19

ROE 4.08%

D.CX
G.M Honda Nisan

35.4
41.84 73.87 9.01

35.5
23.01 35.99 17.9

0.28
0.14 0.64 0.4

4.47%
2.61% 12.05 % 43.51 % 9.69% 0.93%

Toyota
Industry

49.32

91.2

0.88
0.27

Production in whole World Market

9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 T O Y O T A Ford Daimler VW Chrysler Fiat Nissan Honda PSA Renault GM

Industry Analysis
MATURE There is Product Segmentation By Price And Function Technology Changing In Mfg. Process And Product

Design

Overcapacity Worldwide

Industry Analysis cont

Mega-dealers Worldwide Demand Is Declining Auto industry Must Be World Class In Every Respect

In Form Product, Mfg. Operations, Financing, And Distribution.

Concentration Issues In Car Industry

Leadership, Vision Vs. Mission: Focus Technology Vs. People Profit Vs. Market Share Financial Considerations Competition: Quality, Cost, And Product Differentiation

U.S vs. JAPAN

U.S Economy Japan Economy

General Motors (U.S)

Claim to be the leader in the automotive industry. Has the largest share of the worlds vehicle

market at 15.1%. Offer a variety of services including GMAC. Focusing on technological innovations

Ford (U.S)
Passion for better ideas
Pushing the limits of technology and design Striving to make the world a better place

Concerned with environment and developing more

efficient automobiles

Daimler & Chrysler (U.S)

Striving to become the number one automobile

manufacturer in the world Formed various partnerships to enhance access to various global markets Leader in innovative designs and styles

Honda (Japan)
Manufacturers of a wide range of products
Industry leader in fuel-efficiency and low

emission technology (EFI) Maintains values of a small company despite competing in a global market

Nissan (Japan)
Slogan of thinking ahead
Offer a sport edition for every model of car they

produce Development of economically minded transportation Believe that design is the most vital contact, they have with their customers

Toyota (Japan)
Slogan is get the feeling
Devoted to the customer and excel in customer

service Local outreach programs High standards for dependability

CUT COSTS BY: Dropping Unsuccessful Product Lines

Reduce the Number of Basic Platforms Standardizing Component Parts Across Models Reducing the Number of Parts Needed to Produce a Car

CUT COSTS BY: cont

Streamlining Operations by Consolidations Within

the Corporation

Decentralizing Decision Making Integration of It Design & MFG Activities Better Management of Supplier Relationships

 Focus on core products, cars, & trucks. Realignment of organizational structure to support

core products and meet costs & quality goals.

Example: self managed creative work teams to figure

out how to speed-up & improve product development.

Implement common systems & processes where possible. Balance needs of employees and unions with needs of the company.

References
http://www.wikiswot.com/SWOT/4_/General_Motors.htm

l http://www.freeswotanalysis.com/automobile/107-generalmotors-swot-analysis.html http://garagesalemba.com/2011/02/20/general-motorscase-study-on-marketing-strategy/ http://www.forbes.com/forbes/2011/1205/strategiessolutions-general-motors-stock-muller.html http://www.academicmind.com/unpublishedpapers/busin ess/management/2004-11-000aaa-automotive-industryanalysis.html http://wheels.blogs.nytimes.com/2010/04/02/g-m-andtoyotas-joint-venture-ends-in-california/

The Marketing Process

What to offer?
To whom to offer? At what price?
Target Market Product category & services

Creating awareness

What is the strategy for distribution?

Retaining Customers.

Through what channels?

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3 Key Strategies
1. Segment Analysis and Strategy Development
2. Sales Support of Account Management 3. Segment specific value added that drive

incremental sales

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1-Segment Analysis and Strategy Development

Hotels position with in segment
Competitive analysis Segment Marketing Plans

Business model strategies

Data collection and integrity Data and trend analysis

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2-Sales Support
Controlling the initiative brand
Supporting the market by direct sales effort Price transparency

Accounts management
Company representation in overall industry and

trade shows.

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3-Segment Specific Value Added

Segment leaders analysis.
Web-based support for direct sales effort (Corporate and franchise support) Industry value adds through targeted promotions

and marketing

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Marriott Strategy
Marriott got change from focusing on Accounts to

a focus on Industry Focus on Intermediary Strategies to promote sales. Key Segments

Airlines industry, Entertainment, Government,

Intermediary, Multi-cultural, Sports, Business Travel.

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 Strengths Large Geographic Presence Global leader in hotels market Large number of franchises Website and Social Network Focused strategy for upper class Excellent Strategies to attract and retain

employees Strong supply chain for products Strong Brand Equity

 Weaknesses Focus on US instead of international

establishments (over-reliance on US market) Over dependence on luxury brands lack of low-cost brands

 Opportunities Economic Tourism Markets Cost sensitive market Distinction in hotel service offered Environmentally and Family Oriented Decrease of cost of real estate in the US for

the growth in the business

 Threats Economic Recession Consumer spending is low Boom of Economical Hotel Brands Political instability Increase of Real Estate in Asia Terrorism Marriott being targeted by fundamentalists

or extremists

KEY STRENGTHS BY THESE STRATEGIES

1. Profitability strategy
2. Human capital strategy 3. Customer strategy

4. Internet strategy

PROFITABILITY STRATEGY
Managing present Properties and

managing owning properties Invest in projects that increase shareholder value Positively use of debt in the corporations capital structure

HUMAN Capital STRATEGY

The right person for the right job
Retaining skilled employees with

continuous development. A great and caring working environment. Understanding the problems of workplace.

CUSTOMER STRATEGY
Sales force update strategies
Fulfillment of all customer needs in

limited recourses.

one-stop-fashion

INTERNET STRATEGIES
Look no Further Best Rate by

competitors analysis. Hassle Free Navigation, and access And transparency in prices Partnerships with 3rd party websites for advertisements

Thanks