Introduction
Amazing cars is one of the five sister companies that constitute the StratSim vehicle manufacturing industry. There exists a healthy spirit of competition amongst the firm in this industry. Each firm continually seeks to leverage on its competitive advantages so as to bolster its current market position.
The drive behind each firm’s competitive nature is the desire to boost their overall productivity and profitability as well as penetrating into new market. All of the StratSim’s affiliated companies are primarily involved in the design, manufacture and selling of various motor vehicle brands. According to the latest financial reports, the industry’s annual sales volume was estimated at about 4.3 million units.
Table 1: a summary of the five firms that make up StratSim Industry, showing their annual sales revenue and range of automobile each manufactures.
Core Competencies
One of Amazing Cars key competencies its capacity to produce a pocket friendly economy class vehicle that delivers in terms of performance as well as having well designed spacious interiors. The Alec brand of cars surpassed the other vehicle brands within the economy class to command 63% of the total market share for that category.
The Alpha brand of family cars, also produced by Amazing Cars, managed to attract an impressive 22% of the market share selling 317 units. This is yet another competency possessed by this company. Amazing Cars is also endowed with ample technological capacity which allows it to manufacture vehicles that are of moderate styling, safety, quality and interior finishes.
This is a key internal resource for the company. Lastly, the company has a dedicated marketing and distribution channel. This is done through motor vehicle dealership firms located in a number of geographical market segments. These dealerships are the sales and marketing lifeline for the company offering product promotion, and even after sales service to all its diverse customers.
Leverage
The company will seek to gain more ground within the market by implementing the following strategies. To begin with, Amazing Cars will heavily invest in its technological capacity. The firm will aim at acquiring the cutting edge infrastructure required for the production of vehicle with modern, advanced features. This will strategically position the firm to be able to meet the rapidly evolving needs of its customers.
This investment in technology will also help Amazing Cars company take advantage of the resultant decrease in production costs. The company will also enhance the features on both its Alec and Alpha brand vehicle brands to enable them compete more effectively with the other brands in their specific categories. There is a growing demand for performance, quality, safety and space. Amazing Car will seek to increase the market share through developing more durable and spacious vehicles that come with enhanced safety features.
Roadblocks
The internal roadblocks will be in the form of limited resources for the expansion of the company’s technological capacity. The company will also have to face challenges in obtaining funding for the long-term upgrade of its Alpha and Alec brands. Externally, the company will have to spend more resources in research and development especially through hiring the services of product development specialists.
Conclusion
From the implementation of these strategies, it will be possible to single out the specific market needs of the industry, as well as the possible sources of financing for future expansion of the company’s operations.