At the beginning the gas price and economy were stable, this create conducive environment for car manufacturers, Vehicle sale has become stronger in the market, than it was anticipated due to expected economic growth, where by industry marketing expenditure were flat at $ 1,505 million and later increased $39 ml to 1544 ml due to aggressive advertising and promotion increase despite growing sales, oil prices were doubled in the December, and raise concerned about the ne next year, also marketing industry expenditure increased $232 million to $, 705 million, due to heavy and also many firms decided to upgrade their car to meet difference taste and preferences
Strategic Choices
Strategy is the direction and scope of an organization over the long term, which achieves advantage, in changing environment through its formation, resource and competences with the aim of fulfilling stakeholders expectations, strategic decision are therefore likely to be complex in nature(Johnson et al,2006;61) Strong business strategies are built on good business decision so success depends on whether management has solid understanding of the micro environment, the industry in which its operates
Strategic Analysis
Mission & Vision
The business overall vision is to become the leading manufacturer to economy -oriented vehicle and become best in its class reflect different style and design in order to meet the test of different customers economy segment.
At the beginning all firms were started under same circumstances, the Primary strategy was to develop the vehicles, firm was original introduced (one of each categories, Economy Family and Truck), and the vehicle which were not performing better in a firm were upgraded to reflect the changing style and design to appeal with customers' expectations
The major target market, and particular attention was given to Economy vehicle, the Echo, Effiz and Egad
Basic Strategy
In simulation exercise