Stratsim Industry Analysis
StratSim Team 1 - Firm A
Cynthia Bronson
Shanae Spencer
Peter Wilson
Part 1: Industry Analysis
The Automobile industry
The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed. These classes are the Alternative Energy Vehicle (AVE) and Delivery Vehicle. The Geographic concentration is the North, South, East and West regions.
Firm A
Amazing Cars (Firm A) is the industry leader with sales of $20.5 billion, followed by Efficient Motors (Firm E) with sales at $20.1 billion. Firm A is not represented in the Luxury, Sports, Minivan, and Truck vehicle classes. However, Firm A has a huge advantage in the Economy Class, represented by the Alec vehicle, owning 63% of the market share.
Exhibit 1.1: Sales and Market Share for Firm A
Vehicle Class | Firm A Total Sales (000s Units) | Vehicle | Firm A Market Share | Economy (E) | 576 | Alec | 63% | Family (F) | 317 | Alfa | 22% | Utility (U) | 314 | Awesome | 49% |
The Competition
Firms A, B, C, D, and E all have at least three vehicle offerings in three different vehicle classes. Under represented segments within this industry are the Sports and Minivan vehicle classes, where Firm B and Firm C monopolize these segments respectively. The Economy, Luxury, Truck, and Utility vehicle classes all have two vehicles offerings each.
Exhibit 1.2: Sales and Market Share by Vehicle Class
Vehicle Class | Sales (000s) | Vehicle | Market Share |
Cynthia Bronson
Shanae Spencer
Peter Wilson
Part 1: Industry Analysis
The Automobile industry
The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed. These classes are the Alternative Energy Vehicle (AVE) and Delivery Vehicle. The Geographic concentration is the North, South, East and West regions.
Firm A
Amazing Cars (Firm A) is the industry leader with sales of $20.5 billion, followed by Efficient Motors (Firm E) with sales at $20.1 billion. Firm A is not represented in the Luxury, Sports, Minivan, and Truck vehicle classes. However, Firm A has a huge advantage in the Economy Class, represented by the Alec vehicle, owning 63% of the market share.
Exhibit 1.1: Sales and Market Share for Firm A
Vehicle Class | Firm A Total Sales (000s Units) | Vehicle | Firm A Market Share | Economy (E) | 576 | Alec | 63% | Family (F) | 317 | Alfa | 22% | Utility (U) | 314 | Awesome | 49% |
The Competition
Firms A, B, C, D, and E all have at least three vehicle offerings in three different vehicle classes. Under represented segments within this industry are the Sports and Minivan vehicle classes, where Firm B and Firm C monopolize these segments respectively. The Economy, Luxury, Truck, and Utility vehicle classes all have two vehicles offerings each.
Exhibit 1.2: Sales and Market Share by Vehicle Class
Vehicle Class | Sales (000s) | Vehicle | Market Share |
References: Deighan, M. & James, S. & Kinnear, T. (2011). StratSim Marketing. The Marketing Strategy Simulation (p. 6). Charlottesville, VA: Interpretive Simulations. Deighan, M. & James, S. & Kinnear, T. (2011). StratSim Marketing. The Marketing Strategy Simulation, Section 4 Market- Base Marketing Management (pp. 113-139).Charlottesville, VA: Interpretive Simulations. -------------------------------------------- [ 1 ]. Deighan, M. & James, S. & Kinnear, T. (2011). StratSim Marketing. The Marketing Strategy Simulation (p. 6).Charlottesville: Interpretive Simulations. [ 2 ]. Deighan, M. & James, S. & Kinnear, T. (2011). StratSim Marketing. The Marketing Strategy Simulation (p. 6).Charlottesville: Interpretive Simulations.