Megan Barnett, Johnathon Bish, Nathan Downes, and Hannah Loyd DeVry University, BUSN 319
April 6, 2009
Introduction and Mission Statement
What seems to be the trend in today’s market and what some are already practicing is the “green” life style. There is a need to create a product that can adhere to this lifestyle in a way that helps the planet, can be done safely and in style, with effortless routine, while clearly stating that you are contributing to the “green” way of life. Environmentalism, which is associated with the color green, is a broad philosophy and social movement which is centered on a concern for the conservation and improvement of the environment (Wikipedia, 2009). This movement is the driving force behind the Smartfortwo.
The United States became the 37th country to sell the Smartfortwo on January 16, 2008, when the first delivery was made to a U.S. customer: The affordable and stylish Smartfortwo is the right car at the right time for America (Mission Statement). With high and potentially rising fuel prices, increased congestion, and the increasing “green” mentality of consumers, the Smartfortwo makes for the ideal vehicle choice. Being the smallest and shortest car in the United States, the Smartfortwo offers great comfort, agility, safety, and ecology with unique features and attributes that bring the Smartfortwo car into a new day and age while still being a fun car to be proud of driving (Kettenbeil, 2008). Product Description
Penske Automotive is the main distributor of the Smartfortwo where there are three different Smartfortwo models to select from with varying upgrades. The Base pure model starts at $11,990 and comes standard with convenience features such as a 5-speed automated manual transmission with manual or automatic mode, central remote locking system, 2-spoke leather steering wheel, and more (Kettenbeil, 2008).
The Passion Coupe starts at $13,990 and is value packed, sporty and well-equipped. The Passion Coupe includes a panorama roof, alloy wheels, air conditioning with climate control, a three spoke leather sporty steering wheel with shift paddles, power windows, electric and heated side mirrors, and an AM/FM radio with CD player (Kettenbeil, 2008).
The Passion Cabriolet starts at $16,990 and in addition to the Passion Coupe, it includes an upgraded radio and sound system that includes an mp3 compatible in-dash 6-disk CD changer. The main difference lies in the soft top, with a heated rear glass window, that is fully automatic and can be infinitely adjusted to any position while driving at any speed (Kettenbeil, 2008).
The Smartfortwo is one of the most economical cars on the U.S. roads today. It is ranked as the most fuel efficient, all gas powered vehicles by fueleconomy.gov, and fifth overall behind four hybrid models. The vehicle achieves an average of 33 to 41 miles to the gallon (city/highway) according to 2009 EPA ratings (Kettenbeil, 2008). Situation (SWOT) Analysis
Table 1 highlights trends in automotive industry as it applies to the Smartfortwo, analyzes the competitors for the Smartfortwo, shows a brief assessment of the Smartfortwo internally and externally, and introduces present and prospective customers:
Table 1 SWOT Analysis
Location of Factor| Type of Factor|
| Favorable| Unfavorable|
Internal| Strengths * Well known amongst US consumers * The first in its class to produce a highly economic and eco-friendly automobile * Attracts those seeking a more “green” option in transportation * Attracts those seeking a more urban chic and stylish automobile because of its European introduction| Weaknesses * There may be additional costs associated with the Smart USA Company’s adherence to an eco-friendly product which may hurt incoming revenues * Rapid increase in sales and in profits * Need for additional labor, management, and customer service employees * Competitive pricing makes it...