Shift in Demand for Cars From Big to Small Case Study

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[. . .] This is a secondary factor that influences demand for cars therefore; its influence upon demand for vehicle is temporal. If the fuel prices fall and give an indication of remaining low-consumer behavior is expected to change towards negligence of the cost of fuel. This will drive up their demand for a big car therefore, rolling back preferences.

The demand for big cars accommodates the lifestyle of people with families in America. This implies that although people may opt for small cars with the rising cost of fuel their desires are for big cars. If an increase in the volume of disposable income for an individual their spending behavior will reflect their preference for big cars. Therefore, if the incomes of the people increase to allow them a higher spending power, there will be a reversed trend towards big cars. If the increase in income is sustainable with the high-fuel cost, there will be a permanent shift in demand for big cars.

Suppose you were in charge of the Mini product line. What might you do to keep the Mini "fresh" and at the forefront of its market niche?

Mini needs appreciate that the demand for their product line is increasing steadily but not too fast to deter competitors from taking their idea and running with it. With the current favorable condition influencing demand for small vehicles, Mini can become a leader in the sale of small cars to both new and old car owners (George 38). Mini has an opportunity to sustain itself in the automobile industry given the niche high-fuel cost has provided.

The car manufacturers - (Mini) - have managed to penetrate a market dominated by big vehicle industry through originality and proper analysis of the consumer desire. This makes it possible for a small car company to rival other existing car manufacturers. In order to sustain its new found glory in the market, the car manufacturer needs to maintain their originality and come up with ways of creating more desire for their car models. In the car industry, it is observed that a small car is a preference among the first-car owners and more so among the individuals with small families. Therein exists an opportunity for mini to for a tradition among first-time car owners by targeting their very needs and difficulties in car ownership.

It is essential that Mini look into ways of making the first-car owner convinced that their experience with mini as their first car is one that will be satisfying. Considerations for subsidized service and vehicle parts can go a long way to influencing purchase and repeat purchases. It should be considered that first-car owners decisions for a vehicle purchase is highly influenced by the market trend and observational learning from other car owners. This means that if Mini Company can manage to create a strong culture that influence first-time car owners it is going to capitalize and sustain on the market niche in existence.

What have you learned from this assignment?

From the assignment, it is observable that numerous factors influence the operations in the market and demand supply play along this changes to come up with a desirable equilibrium. In order to make a decision concerning any aspect related to the market, an investigation upon the factors prevailing in the market in necessary. These considerations will allow for a wholesome evaluation of the available choices in decision making and the decisions that will yield a desirable outcome.

Managers face a difficult task of assessing the development in the market and the effect these developments will have on their operations. It is by thorough investigation that managers take decisions that will facilitate the company's success in it operation. An understanding of the existent interactions between various developments and the influence these developments have on related aspects play a role in decision making. With this in mind, a manager understands that the ideal way to take up decision is to have a wider view of all aspects related and interlinked to occurrences and the desired outcome.

Works Cited

George, S.D. "The Capabilities of Market-Driven Organizations." Journal of Marketing 58.1 (2004): 36-41. Print.

Kohler, P., and K. Keller. Marketing Management. (14th Ed.). Upper Saddle, NJ: Jersey: Pearson… [END OF PREVIEW]

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