Iundustrie Pininfarina: The New Customer Decision

2437 words - 10 pages

Competitive EnvironmentIn 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 Bleak1. 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 Pressure1. 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 Capability1. 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 PositionNiche Producer Advantages1. 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 ProducersThe spread of more efficient production and producers has raised at least two potentially serious problems for niche producers.1. Traditional niche manufacturer customers (e.g., Peugeot & Fiat for Pininfarina), who themselves are experiencing considerable erosion of sales, may have less business to offer.2. Since with the improvement in operational efficiency without major incremental capital investment implies volume production is feasible at lower volumes, the niche business may shrink.Potential Opportunities for Niche ProducersIf niche producers can improve their operational efficiencies more rapidly than European and other volume producers, they can become an increasingly attractive option of lower volumes and might greatly expand their market share. In that sense Pininfarina's improvement in operations to date, as detailed in Exhibit 6, is a step in the right direction.Potentially, there are still other opportunities created by the changes underway in the European auto industry. Japanese producers have considerably shorter model lives in addition to lower production costs. This suggests that the trend in future...

Find Another Essay On Iundustrie Pininfarina: The New Customer Decision

Ferrari SUV Case Study

4187 words - 17 pages market which was "tailored" to upcoming customer preferences in the late 1990s. Ferrari SUV - Marketing Case Study Ferrari SUV Case Study August 22nd 2014 6 Various forces drive the development of the Premium SUV segment: Ferrari SUV - Marketing Case Study Ferrari SUV Case Study August 22nd 2014 7 New growth for premium OEMs in the mature automotive industry is only possible through expansion of model lineup and through further global expansion

Customer Loyalty and Customer Satisfaction in a Hotel

2102 words - 9 pages classify into six stages: First: The consumer decision-making period - commitment loyal service This stage is focused on in the customer management of the hotel customer loyalty consumption desire, search information and choose consumption object pledge loyalty to its service hotel, in order to arouse the customer loyalty to the hotel's return. Based on this, the hotel managers tend to spend more effort on existing customers, more than the

Rational models and self evaluation

919 words - 4 pages , “Out of Business”. PROBLEM DEFINITION The on-site Team defined the problem (Bazerman, Max H. Judgment in Managerial Decision Making, 5th edition. New York: John Wiley & Sons. 2002), resolving; Apple Computer Corp. had shipped a machine to the customer with the very latest operating system on it which did not work with a standard desktop publishing application; it required a missing upgrade patch having a zipped (compressed) volume of about

Research Study Exploring Factors that Affect Customer Retention

3301 words - 13 pages 1. Abstract Purpose: This research paper gives an insight on the factors affecting customer retention, customer retention is now known to be a key factor which can alter customer’s decision on repurchase of a particular product/ service. This research paper discusses relationship marketing, customer loyalty and customer satisfaction as basic factors affecting customer retention. Design/ Methodology/ Approach: The data for this study was

Case Study Of UPM-Kymmene

1645 words - 7 pages has evaluated departmental processes (i.e. Production, Marketing, Finance & IT etc.) and provided performance measures to improve these processes in relation to customers (i.e. customer measure).Accurate customer profitability derived from costing systems (i.e. ABC) provides management with fiscal information for decision making. Apart from being useful in management decisions, profitability data can also be used in lower levels of the

Joann Harris

753 words - 4 pages Customer Advocacy has a positive impact on customer satisfaction. Hypothesis 5 Customer empowerment has a positive impact on the firm’s customer advocacy. Hypothesis 6 Organizational innovation has a positive impact on the firm’s customer advocacy. (Yeh, 2013) Customer advocacy aims to build deeper customer relationships by earning new levels of trust and commitment and by developing mutual transparency, dialogue, and partnership with customers

International Business Plan

4985 words - 20 pages decelerating. Standard vehicles would lose this energy. Some hybrids can also be plugged in to charge the battery. In the future, when cleanly generated electricity is available from non-fossil fuel sources, hybrids can take advantage and will consume less fuel.Hybrids are a new product with a growing market. They are on the low part of the customer-adoption s-curve (Hybridsmarts, 2006) so demand is expected to rise very sharply soon. Hybrids are

Factors Affecting Customer Loyalty Programs

1797 words - 7 pages of CRM in late 1990s, marketers are of the opinion that appropriate vigil and analysis of customer data might bring wonders for the organization. Indian apparel retail sector is booming, leading to intense competition. The war is to attract new customers but most importantly to retain the old ones. The companies are continuously adopting the process of generating custom CRM initiatives to increase their customer base. The study is focussed at

Hospitality information system in Iran

2490 words - 10 pages information the higher is the change of customer decision behavior , which means the higher the value of information system the higher is the effect on customers to win more customers form the competitors . Hospitality information system is considered as a system which supply helpful information’s to the customers ; in this case, hospitality information system can facilitate any organization by providing customer service and customer

Customer's Cycle of Involvement

573 words - 2 pages maximum satisfaction the time the customer uses it. It is also a measure for the customer how well the product will fit them and how would be operated without the necessary help coming form the suppliers. Most likely, car owners manage to handle simple problems and know how to use because maybe in the past, they have purchased or acquired cars. It is in the decision of the customer whether they will be having the same brand or new one for

CRM SYSTEM RESEARCH PROJECT

1033 words - 4 pages individual customer contacts at the various touch points. Acquiring new customers is much more costly than retaining the existing ones. It costs one-sixth less to keep a current customer than it does to attract a new one. (Edwards, John 2007). Typically, buying an furniture is a long-term decision for a customer; and if she/he decides to switch, it is very likely that she will not come back.Affinity Analysis is often referred to as market-basket

Similar Essays

Project Proposal For A New Computer System At A Bank...Customer Assist And How The Company Will Improve

1190 words - 5 pages habitual issues with their account. Account activity such as continued insufficient funds, lack of history, history of slow or no payments and single account customers would automatically disqualify the customer for a "star" candidacy through the Customer Assist program.In an effort to incorporate a new systems solution program into our current database, a program must be implemented that will allow us to distinguish what clients will meet our

Recommends How New Media Could Be Used To Further Develop The Organisation Current Relationship With The Customer With The Most Influence And Impa

881 words - 4 pages many social networking sites such as Facebook, Twitter, Linked In, and Google Plus etc. Airline has also taken part in digital communication sites such as You Tube, Mobile Applications, however Airline has not been used new media to gain maximum benefits in term of developing current relationships. Some recommendations using new media to improve current relationship with the main customer group are discussed below. Social Media -The main advantage

Ferrari Essay

1573 words - 7 pages that so much of what Ferrari established and where it was begun continues"(5). The roots are in Modena, Italy, and if you walk the streets of its central district today, you will see that remarkably little has changed. All this is as it has been for many years, and you can see the tradition in the newest Ferraris. The Pininfarina styling that simultaneously appeals to your highest sense of art and design, and to the fire that glows inside you

Clv Customer Essay

4337 words - 17 pages , & Idan, 2002; Verhoef, & Donkers, 2001). Therefore, many firms are needed to assess their customers' value and build strategies to retain profitable customers. This paper aims at suggesting a new LifeTime Value (LTV) model and customer segmentation considering customer defection and cross-selling opportunity. We will also propose marketing strategies after segmenting customer base. This paper is organized as follows. Section 2 reviews the