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Affordable Cars business strategy

Affordable Cars business strategy - StratSim Industry...

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StratSim Industry 1/Firm A Affordable Cars business strategy The business dictionary defines a business as “an economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth.” Businesses require investment and satisfactory customers to whom its amount produced can be sold at profit on a regular basis. In the world of business, companies are faced with fierce competition along with complex business decisions. To overcome such rivalry companies should therefore develop a business strategy in order to increase its chances of success in its market to assist in maintaining or even increasing its market share. The basis for successful business strategy formulation is that Affordable Cars match its key external opportunities and threat with key internal strengths and weaknesses. This in turn would help the company to remain externally focused and sensitive to its ever changing environment. Affordable Cars operate within the vehicle industry which is highly competitive. The company designs and manufactures cars within three different vehicle classes. These include the economy class in which it sells Alec which has the leading market share, the family class where Alfa is sold controlling only a low percent of market share, and the utility class where its Awesome brand is sold which also controls a low percent of the market share. It is the goal of Affordable Cars to ensure that each of these brands seek to satisfy customers from the family, value seekers and enterprisers consumer market segments. The company targeted these customers as a result of the following reasons. Both the family and value seekers segments were targeted because the consumers within these market segments are fairly price sensitive buyers who focus on quality and safety. However, the family segment is the largest market segment which offers the greatest opportunity for increased sales; this segment shows that there is a possibility for good long-term growth projection, which has the capability of maximizing profits, there is also the strength to reckon with both existing and potential competitors and there are business capabilities. With Value Seekers
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StratSim Industry 1/Firm A they concentrate on quality and safety, which are our main advertising theme. They are also price incentive; hence if we can continue to embrace technology and develop the safety and quality of our products at a reasonable price, we can become quite competitive in that market. Our Alec and Alfa brands cater to these two market segments, the Family and Values
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