The American auto industry has suffered a severe drought in terms of sales and production over a period of time. In particular, several reasons have contributed to the program. The Detroit auto sale economy is one of the hardest hit. First, it is worth noting that the emergence of Asian giant manufacturers of automobile such as Japan, Korea and China has affected America’s auto industry (Eisinger 84). These nations have aggressive marketing strategies that help them venture into foreign markets, including the local market in the United States (Boyle 111). In addition, the competition America faces from European auto industries is enormous and contributes to the problems facing the local industry.
In the recent past, America suffered from an economic crisis due to credit crunch and one of the most affected industries was the auto manufacturing sector due to a reduced rate of purchases among the public and increasing cost of doing business (Okrent 12). Nevertheless, there are opportunities to revive the industry and regain its position in the globe. In this paper, an in-depth but brief description of the strategy that could be used to revive the industry has been described, paying attention to Detroit and using a hypothetical company.
Culture and background of the company
The company chosen in this case is the Sparrow Automobiles Inc., of Detroit, Michigan. It is located just outside the city, a few kilometers from the industrial park. The company was started in 1972 as a maker and repairer of motorbikes and other smaller engine-driven machines, but eventually ventured into the automobile industry. It has been producing a wide range of products, including trucks, motorbikes, personal and public services vehicles, motorboats and other equipment.
The company has a wide distribution network covering the whole of North America and extending to Brazil, Argentina, Chile and the Caribbean. In addition, it has a subsidiary in Netherlands, which makes products for the European and Middle East Market. Nevertheless, it has been difficult to penetrate the emerging markets of East Asia and Africa as well as Australia.
The corporate culture has been marked by quick adoption of new technologies and innovations, developing technologies within its industrial park and focusing on the customer and the human resource.
To revive the ailing economy, the main idea is to look beyond the traditional sales outlets while also develop stronger strategies to consolidate the previously controlled markets (Ingrassia and White 41). In this case, it is suggested that the company focus on the emerging markets by studying their needs and developing products that are customized to meet the individual need of each nation in the emerging market.
In this case, the nations of Brazil, India, China, Turkey, UAE, Saudi Arabia, Nigeria, South Africa and Egypt should be considered. To compete with the Japanese, South Korean and Chinese industries in these markets, it is important to establish regional manufacturing subsidiaries in Turkey, South Africa and India. The aim is to ensure that the company studies each target market and its needs and develop products that effectively meet the local demand.
To achieve the above aims, the company will be required to develop a strong approach towards the human resources and technological development. In this case, financial resources will be harnessed towards training and empowering young employees drawn from each of the target markets in order to understand the local needs and develop customized products.
The Detroit auto industry can be revived by ensuring that the players in the industry focus on international markets in order to cope with the stiff competition from Asian giants. It is recommended that the company study each market and venture into it by offering customized products that meet local demands. In this way, it is possible to achieve growth and return the profits for developing the Detroit auto industry.
Boyle, Kevin. “The ruins of Detroit: Exploring the urban crisis in the motor city.”The Michigan Historical Review 3.2 (2001): 109-127. Print
Eisinger, Peter. “Reimagining Detroit.” City & Community 2.2 (2013): 85-99. Print.
Ingrassia, Paul, and Joseph White. Comeback: The Fall & Rise of the American Automobile Industry. New York: Simon and Schuster, 2013. Print
Okrent, Daniel. Detroit: The Death—and Possible Life—of a Great City. New York: Time, 2009. Print.