SmartCar's Success in the U.S.: SWOT Analysis

Topics: Internal combustion engine, Marketing, United States Pages: 2 (299 words) Published: May 13, 2010
Analyzin SmartCar

To analyze whether SmartCar will be a success in the United States I have performed a SWOT analysis to assess its Strength, Weaknesses, Opportunities, and Threats. SWOT Analysis:

• Fuel efficiency
• Reasonable cost
• Brand equity (Daimler-Benz)
• Production is refined through existing worldwide sales
• Backed by an established respected brand
• Good access to capital and marketing resources
• Establish networks of dealers in the United States

• Perception the car is unsafe
• Small car unsuitable for longer trips
• Too small for families

• Increasing fuel costs create growing demand for fuel-efficient vehicles • Increasing environmental awareness and a desire to drive an environmentally responsible vehicle • Traffic and parking congestion in larger cities make the size of the car appealing; easier to find parking, etc. • Large percentage of the population can afford cars and purchase regularly (every few years)

• Regulation: Safety of the car must meet strict governmental safety standards. • Competition: Entry to market by Japanese carmakers who have established dealer networks in the U.S. • Currency: smart cars designed and built in Europe, but sold in the U.S. expose the company to exchange rate

The potential market success of SmartCar in the U.S. market is very difficult. Even in Europe, where parking and gas come at a premium, initial sales were slow, but eventually the SmartCar became a success. The U.S. market has not been overly friendly to ultra-efficient vehicles in recent years, but that has been slowly changing as gas prices have been increasing. The demand for fuel efficient transportation continues to grow in the US as a result small fuel efficient vehicles are considered by many potential customers as stylish and trendy. In addition to the individual market, businesses also recognize the need for, and marketing advantageous of being environmentally......
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