Land Rover Range Rover example essay topic

1. Industry History & Current Overview Since the invention of the Ford's Model T, the modern automobile industry has been manufacturing affordable automobiles for everyone in the U.S. The age of design of cars boomed as people started to demand more customization of their cars (Model T only came black). This began the shift from manufacturing-driven automobile to a more design-driven automobile. The Sport Utility Vehicle (SUV) emerged in the 1990's based on the negative image of the minivan, which was developed throughout the 1980's on a bland and purely functional platform. In 1996, the Ford Motor Company began building the Expedition, its new, full-sized SUV in Michigan. The Expedition was essentially the F-150 pickup truck (the best selling pick-up truck) with an extra set of doors and two more rows of seats.

Ford marketed the SUV at a ticket price of thirty-six thousand dollars. The average cost to build these trucks was no more than twenty-four thousand dollar, and in the automobile industry, this is a high-profit margin. By the late 1990's, the SUV market has become the most profitable in the automobile industry. The move toward a more aggressively styled and higher riding vehicles have caused unintended consequences and risks. The risks include decreased "drivability", obstruction of vision, and concerns surrounding safety.

Current trends in vehicle design focus on addressing these problems to achieve appealing designs with the best qualities of both cars and trucks, as seen in all the new designs from the Land Rover. 2004 will be remembered as a pivotal year in the automobile industry. It was a year in which high gasoline prices started a sea change among U.S. consumers that will finally create significant demand for fuel-efficient vehicles. Gasoline prices of $2.00+ per gallon started taking a huge bite out of family budgets, and many middle-class consumers who own fuel guzzling SUVs and pickup trucks began to wish they had vehicles that were much less expensive to operate. Demand for hybrid cars (ie. Toyota Prius) was so high that many customers had to wait six months or longer to get there car.

Other car makers, including Ford and GM, saw the opportunity and introduced their own brand of hybrid vehicles to market. Ford launched its first hybrid: a small SUV. Other fuel-efficient vehicles, such as BMW's MINI Cooper, also enjoyed soaring demand. Meanwhile, sales of heavy SUVs lagged miserably, and automakers such as Chevy, Hummer and Cadillac offered unprecedented dealer incentives and rebates in an effort to move these vehicles, Land Rover Range Rover has increased due to efficient newly designed models as shown from the stats below. 2.

Company / Product Overview Ford Motor Company is one of the largest producers of cars and trucks in the world. The automotive business consists of design, development, manufacture, sale and service of cars, trucks and service parts. The company operates primarily in the North America with headquarter in Dearborn, Michigan. The Ford's automotive vehicle brands include Ford, Mercury, Lincoln, and its Premier Automotive Group (PAG) includes Volvo, Jaguar, Aston Martin, and Land Rover. Land Rover was the name of one of the first British civilian all-terrain utility vehicles, first produced by Rover in 1948.

Eventually, the Land Rover division was split off from Rover, and produced an expanding range of four wheel drive vehicles under a succession of owners, including British Leyland, British Aerospace, BMW, and, from 2000, Ford in the Premier Automotive Group. Land Rover North America is part of Aston Martin Jaguar Land Rover with headquarters in Irvine, California. Land Rover established operations in the U.S. in 1986 and now imports and distributes Range Rover, LR 3 and Freelander vehicles manufactured by Land Rover in Solihull, England. Over the years, Land Rover has engineered and released eight models. Over the next six years, Land Rover plans to release five new, groundbreaking models. The SWOT analysis below details the current situation Land Rover North America faces: SWOT analysisStrengthso Ability to meet consumer's demand for quality, reputation, and history New Products in pipeline - LR 3 (released 10/04) o Owned by Ford Motor Company, the second largest automobile manufacturer in the world and this permits them to experience economies of scale and also spread risk out over several product and geographical market so Innovative and well-engineered products - the "original" 4 X 4 o Loyal customer based - enthusiasts o Presence is ALL world markets and a strong presence in emerging ones (Africa!!

!) Weaknesses Low market share Awareness Unclear positioning o Confusion between products and brandOpportunitieso Increase market share Various products for various target so Launch of the new products - Range Rover, Range Rover Sport, and Freelander o Possible expansion into the Hybrid SUV market Threat Arrival of luxury brands in the market Increase oil price might cut demand for SUVs.