The automotive sector today is probably one of the most intensely competitive sectors with almost all the major car manufacturers having set up manufacturing facilities in India.
The automotive sector today is probably one of the most intensely competitive sectors with almost all the major car manufacturers having set up manufacturing facilities in India. This has led to competition in every category and sub-category in this sector.
Technology as a product differentiator is only limited, with most manufacturers introducing Automotive gaining the required edge in India in line with their international product portfolios. The rapid sophistication in this sector in a very limited period has led to a world-class ancillary and component industry, which has resulted in foreign car companies having a relatively large indigenous content.
This has greatly enabled manufacturers to reduce cost and maintain process efficiencies. All the 5 competitive forces viz. No single strategy will be effective for long and they need to implement a mix of 2 or more strategies at a time.
However, with a large no. This sector may also witness consolidation in the future, and companies with strong export orientation will continue to witness growth and profitability in the medium to long term. The case talks of 2 drivers that are a major challenge for the automotive sector and can be considered in our discussion viz.
With so many choices and options, the customer is truly the king and this is a major challenge to the automotive industry. The automotive company can make use of Knowledge Management Systems to efficiently carry out such tasks.
Creating a Virtual Company to educate the customer, has become a competitive necessity. Cut Throat competition is visible in the automotive industry, be it new cars or pre-owned cars. Attractive Finance schemes, Discounts, Free Accessories, etc are used by Dealers to attract customers on the behalf of the manufacturers.
On top of that Automobiles have a relative shorter life span as compared to 10 years ago. The Automotive manufacture has to become an Agile Company and sustain this trend over a consistent period of time.
Other challenges that ACMA has pointed out, which the industry faces are as below. There is an increased pressure on the Indian Govt.
The rising oil prices, makes the end user think twice before going in for this big ticket purchase Country Level: Poor Infrastructure In India: Traffic laws are not well enforced leading to one of the highest per-capita accident rates in the world.
With multiple taxes at City, State and Centre level, the prices of Automobiles are varied.
|Gaining a Competitive Edge with Used Vehicle Acquisitions | vAuto||In fact, for some dealers, the coming year may be even more challenging.|
|Regional requirements As long as car body panels — specifically closures such as boot and hood lids — are made out of metal, they are likely to continue to be subject to hemming as a means of joining different panels together.|
This effects into evasion of taxes, by registering the vehicles in low tax areas. Moreover the prices of Fuel and oil products are also inconsistent due to the rigid tax structure in India 3 Cost of Capital: Comparatively, the cost of Capital is higher in India vis-a-vis other countries.
Pressure Mapping: Gaining Competitive Edge in the Automotive Industry. In an increasingly competitive global marketplace, automotive design engineers and researchers must constantly search for ways to improve performance, quality, efficiency, and safety. Automotive mechanics can be a boy or a girl, and they can work on almost any type of vehicle if they have the right qualifications. Some auto mechanics; like my grandfather, can work on many types of automobiles such as four wheelers, cars, SUV’s, trucks, and sometimes big rigs. “Automotive: Gaining the Required Edge” Words | 7 Pages. 1) What are the key challenges faced by automotive manufacturers in India? The automotive sector today is probably one of the most intensely competitive sectors with almost all the major car .
Automotive manufacturers with access to international Capital markets benefit from this, but local companies may have a major disadvantage on this account. Non-Availability, frequent power interruptions and long delays in supply, increase the cost of production.
Indian Legal System with regards to Labor Law are not desirable for foreign countries to actively participate. Local companies also succumb to the demands of the strong labor unions.
Moreover the productivity of Indian Labor is not comparable to international standards and increases the cost of production. What are these best practices? How Indian companies adopt them?
IT integration has definitely helped Indian companies to: ERP allows successful management of internal and external resources including tangible assets, financial resources, materials, and human resources.
It is facilitates the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. It has centralized database which helps management of customers, suppliers and dealers in a much effective manner.
These systems often contain software that cater to the needs of the finance, sales, parts, inventory and administration components of running the dealership. DMS installation includes a central server which stores all data, allowing multi-user access for as many as 50 or more client computers.
A DMS offers many interfaces with other systems, particularly with systems of the manufacturer, in order to enable automatic processing of purchases, warranty claims, price lists and many other data.
This enables to interconnect each stakeholder in the value chain. Stake holders or dealers can work online on a common database shared with OEM which helps company to capture market demand on a real time basis 4 Product designing with the help of IT:Eric from Graduateway Hi there, would you like to get an essay?
What is your topic? Let me help you. The basic technique is simple and well-established; one panel is made to overlap the other and the two are joined by means of the extended edge being folded .
Get help on 【 “Automotive: Gaining the Required Edge” Essay 】 on Graduateway Huge assortment of FREE essays & assignments The best writers! Pressure Mapping: Gaining Competitive Edge in the Automotive Industry.
In an increasingly competitive global marketplace, automotive design engineers and researchers must constantly search for ways to improve performance, quality, efficiency, and safety.
Pressure Mapping: Gaining Competitive Edge in the Automotive Industry. In an increasingly competitive global marketplace, automotive design engineers and researchers must constantly search for ways to improve performance, quality, efficiency, and safety.
uniglobe college, MBA-I Trimester.