STP Analysis on Automotive Market
Automobiles plays important role in people’s life and seen as a part of image of people in modern countries. Automobiles evolve during last century and automobile technology increased continuously and innovative teams create and meet several needs of consumers. With these improvements, types and models of automobiles increased drastically, which created necessity of a good marketing strategy for automobile manufacturers. Before giving information about today’s car market, I will give information about history of automobile’s history and milestones of market.
History of Automobile Industry
Automobile was originated in Europe in the late of 19Th century and became a huge industry with mass production started in US after WW2. We can divide automobile history to 3 parts.
1) Automobile industry before WW2
2) Automobile industry after WW2
3) Modern automobile industry
Most early automobile companies were small shops, hundreds of which each produced a few handmade cars, and nearly all of which abandoned the business soon after going into it. Brands such as Opel in Britain, Morris in Great Britain, Durant and Studebaker in the United States made prototype automobiles with very simple engines works with steam and gas. The production rate is only for orders and production rate is low and production costs are high. The pioneer automobile manufacturer not only had to solve the technical and financial problems of getting into production but also had to make a basic decision about what to produce.
With new technologies and inventions, Henry Ford achieves mass production, which is the milestone of automobile industry and market. With mass production, the price of the Model T touring car dropped from $950 in 1909 to $360 in 1916 and still lower to an incredible $290 in 1926. By that time Ford was producing half of all...