Growth in China affect strategic positioning of Ford, Toyota, BMW
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How does this industry's segmentation and growth in China affect the strategic positioning of Ford, Toyota or BMW passenger vehicles? What generic strategy should these three automakers pursue - and why?
What other business strategy considerations should be considered regarding this industry in China?
How does the PESTEL and Porters 5 Forces models help develop the strategies?
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Solution Summary
How the growth in China affects the strategic positioning of Ford, Toyota and BMW is determined.
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Pestel and Porters 5 Forces:
The population of China has been estimated to be more than 1 billion by the year 2010. This has provided the Ford, Toyota and the BMW car companies with an appropriate target market for their valued products. The companies will have to segment the market so that the niche targeted population can be attained. This will lead to the dividing of the market into subsets of consumers held together by a common need. In the China market, the segmentation processes that have been utilized by these companies have enabled the company to be able to understand the needs of the esteemed clients in the target environment. The demographics segmentation of the status of life of the population of china has given the car companies a profitable business in the China market. The economic growth that has been experienced in China market has led to the raise in the living standards of the people. This has raised the levels of salaries of the consumers giving them the ability of purchasing the cars (Bradley, 2012).
The tastes of the people have been altered due to the high living conditions making the car companies to strategically place their products so that they can appeal to the needs of the customers. The positing strategies that have been utilized by these car ...
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