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Big Drive Auto Essay

With the current hard economic times, there is a need to implement the new alternatives that are there for Big Drive. The main aim of all these is to increase sales while at the same time they decrease the expenses that will be incurred. Some steps needs consideration while implementing these new alternatives. It is clear that the company will be involved with production of completely new product owing to the fact that the customers now need electric car. The company should first comply with the government requirement of production of electric car.

They should then renovate the factories so that they can be in a position to produce the new breed of cars. Later on when the company is stable in the market, it can try to produce cars according to customer’s specification. (Arthur, S. & Sheffrin, M. , 2003) It is also clear that the labor or the job market has reduced by thirty percent. This means that there is no longer available labor and for the company to survive, it must adopt to new labor methods. Fortunately, for the company, the line of production allows mechanized type of labor.

The company should therefore modify the plan so that it can adapt to the use of the new technology. It can use machines in places where it previously used human labor and this will be able to cover up on the labor shortage. It is also clear that the number of dealership as seriously decreased. This means that the company must be prepared to have a good relationship with the current dealerships that are in the market. The company may also decide to look for new alliances with new dealers especially the ones who are entering the market, as they are more likely to accept such alliances. (Arthur, S.

& Sheffrin, M. , 2003) These three options happen to be serious non-pricing barriers to entry in this market. For the company to survive, it must be prepared to try to adapt to the new technology as much as possible. It would be recommendable for the company to set aside more resources so as to modernize the plant to produce the type of cars the customer wants and at the same time be able to penetrate the market as much as possible using the available dealers and the new and upcoming ones. ? References Arthur, S. & Sheffrin, M. . (2003). Economics: Principles in Action. New Jersey: Upper Saddle River.

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