Marketing 2500 24 hours Essay Example | Topics and Well Written Essays - 2500 words

Marketing 2500 24 hours - Essay Example The paper discusses demand-supply, expected sales & market share analysis, analysis of market entry mode, & strategies and estimated budget. All the analysis has base on extensive literature, case studies, theoretical modes and sales tables and curves. The statics results reflect well and car marketers from many companies both local and foreign are having an advantage. Most large automotive industries are currently either investing much in China or developing new small car models preferred by most families in China. Companies such Toyota, Ford Motor, Honda, General Motors are presently investing in China through joint ventures with the Chinese counterparts effectively thus increasing market share competition. Unlike the large international automotive industries, China’s one is fragmented. Most cars are small ones with the huge companies producing up to 37% of the total output. However, China’s current cost of labor is significantly low and the government has referred to the situation as a pillar industry one with high growth potential. The car industry in China continues to be attractive because the tariffs reduction in the industry intends to continue too much lower in the next few years. The government also plans to put car import quotas. Price decrease in China is causing many other auto companies to reduce their prices consequently. In the next few years, companies in China are to face an over production of up to 20% of cars. China has expectation to host more than 140 million cars on its roads; this is much more than the present hence forcing the government to improve the transport infrastructure and services. Background The factory began a s a truck building factory producing their first Jie Fang CA-10 in 1956 by the assistance of Russian Soviet Union. The company began its operations with only 39 employees who travelled to Stalin Truck Factory to receive their learning experience and instructions on how to build and construct trucks. The co mpany is located at Changchun a city that was identified by the Soviet Union as the base of the factory. The city is also situated on the northern side of china, which is also near Russia. The company continued with its operations by also producing passenger cars in 1958. The company produces luxury vehicles that have gained popularity in the country. Due to a lot of fragmentation, the company has entered into ventures with other companies such as Volkswagen. The company has also moved to acquire Tianjin Automotive Xiali in September 2002. In 2009, the company entered a joint venture with Toyota and General Motors companies (Hu, 2006). China’s development concerning automotive is high i.e. recent statistics showed that every 1000 Chinese owned an average of 1.5 car units that is over the global average. Other governmental statistics also showed that almost 32% of the Chinese urban population intends to purchase cars in the next 5 years. Introduction The auto industry that is an important sector in China’s modernization and industrialization endeavors has been growing very fast since the 1990s. In the present past years, China has become the world’s greatest automotive manufacturers, with yearly production output of 18 million units in 2011. It is also currently the largest automotive market in the