Category: Vehicles

Introduction

There numerous social, cultural and economic social workable benefits of automobile as opposed to renounce its usage, but the main reason why various countries are advocating for vehicle-free environments falls upon the consequences to the surroundings. Today the motor-run vehicles pose as much threat to social lives as the advantages.

How would one consider a situation where most of the urban streets lack driveways or garages for vehicles due to current renovations that ensure maximum utilization of available space? Some states have taken a step to bun driveways, home garages and street parking spaces to ease congestions.

Current government policies allow car ownership, but harsh conditions such as existence of few large garages or parking lots away from the central business districts and implementation of costly parking fees are a clear indication that it is time to consider elimination of automobiles (United Nations Conference on Trade and Development, p.133).

Effects of Car-free Environments

Even amidst the escalating fuel prices, loosing a car would not go down easily in America. It is one of the strategies for enhancing the go-green campaigns, but major social effects include the immediate loss of a sense of time and navigation. The environment is not in favour of people without cars, due to the much-needed efforts to navigate from one point to another. Lack of a vehicle can turn what was a thirty minutes shopping event to a two hour and tiresome ordeal.

To most American owning an automobile is an intrinsic affair since it assists in planning events and performing majority of the personal tasks within the least time possible.

According to (Fox, p.106), a car is a desire for any teenager in America, since it is a luxury and driving to school is linkable to a certain rite of passage. Mobility defines the sedentary lifestyles of most Americans than priority. Global warming is definitely a de facto among most people, but urban lifestyles and jobs seem daunting due to needs for easy movements from one point to another.

The challenges of not having cars are causing a drastic change of social behaviours such as giving up some luxuries for instance comfort (United Nations Conference on Trade and Development, p.133). It calls for more budge of time to cater for walks and moments to memorize routes. Daily life without automobile is cumbersome, tedious and dull. The cars are a source of freedom for travelling among people of all classes in United States.

However, the cars cause some negative social problems. Currently, there is more crime related to car theft due to increase in numbers. It is also an avenue for moral laxity since young people are able to escape and find scapegoats for parental supervision. Immorality associable to automobile such as drunken driving is causing preventable deaths through accidents (United Nations Conference on Trade and Development, p.133).

Economically, automobile is a huge support to the fuel and tire industries. Mobility also has a strong impact on fast food industries. There are thousands of drive-in fast food restaurants and theatres near gas stations, which would suffer economically from the car-free environments.

Automobile manufactory industry has a wide range of profitable products and is a support to millions of professionals. Doing away with cars would mean loss of job to many people. Roads improvement from the gravel to the smooth surfaced concrete tarmac is also for the reason of situation demands due to more vehicles (Fox, p.106).

Culturally, the automobile changes lifestyles for instance change of the traditional role of women from the house-based woman to a working class woman. On the other hand, currently women are not producers of well-prepared food today but consumes of ready-made or refrigerated foods, which negatively affects health of the family (Fox, p.106).

Possible Car-Elimination Procedures

There are various harsh conditions or laws that would indirectly convey a message that, car-ownership are more costly, too demanding and stressful in comparison to life without. There is urgent need to separate the suburban lifestyle from automobile usage as a way of planning smartly on the social-economical needs.

Advantages of Automobile Elimination

There is a huge fight for reduction of greenhouse gas emissions from the car exhaust systems. This measure would contribute to the clear necessity to reduce global warming. Statistics by the European Environment Agency indicates that private cars are responsible for 12% of the greenhouse gases emissions in Europe (Herzog, p.90).

The studies also indicate that 50% of the gas emissions are from car intensive regions in United States (Herzog, p.90). Therefore, one of the special advantages of car-free environments is reduction of emission. According to Herzog (p.90), emissions from an increasing number of private cars owned by the burgeoning middle class are choking cities.

Getting rid of cars decreases the density or congestions in cities as well as suburbs and provides better and healthier spaces for walking. The areas will also be easily accessible through more effective and environmental-friendly means such as public electrical trains with less emission and occupy fewer parking spaces (Herzog, p.90). The product stores will also be easily accessible due to possible placements on the walkways of main streets, other than in shopping malls, which are often at distant highway localities.

If forced, would Americans make adjustments for automobile-free conditions?

Majority of the world activities are based on the functionality of automobiles, therefore people highly depend on them. Mostly the government has to utilize various ways of influencing people choice to in favour of automobile-free environments. Majority of the users or owners understand the hazardous risks automobile pose, but ignorantly do nothing to reduce the effects.

If the government would emphasis on the need for environmental-friendly practices such as avoiding automobile usage, then some people would make the necessary adjustments. Hundreds of groups such as environmental activists in the United States formed a coalition called Transport for America, to promote new automobile-free communities (Stave et al, p.221). Their campaign policy is that the amount of driving must depend on whether one has a hybrid vehicle.

The Environmental Protection Agency also promotes the car reduction policies. Majority of the American citizens would not comply with such emphasis, but on the other hand would never break laws. If worse comes to worse, then the government must implement prohibition by-laws to all road sectors. New government provisions may rationalize scales by ensuring all the newly developed structures are accessible through public transport systems, as a comprehensive effort to discourage car ownership and usage.

Some of these major developments include designing easy access to shopping, jobs, leisure and other necessary services. The public service transport system ought to be the only realist way of access majority if not all residents. New regulations can turn down operation permits for restaurants, fast foods or shopping malls that fail to implement housing designs that support automobile-free environments. Narrowed roads and passageways may also discourage automobile usage or ownership.

Some of the possible adjustments Americans would need to make in order to facilitate automobile-free environments include provision of community-based malls or shopping-stores villages, that people are able to access without need for cars. Rapid and reliable alternative transports systems should also come in handy in major public utilities such as hospitals, campus or schools. Current home designs should moreover assist in elimination of cars (Stave et al, p.221).

Americans would need to bring down the old buildings and erect stylish ones. A building should have a couple of stories and stylish balconies as opposed to the freestanding homes that support ample garage and parking spaces.

With such measures in place, people would find other appropriate means of quicker and easily accessible means of transport other than walking, such as bicycles with hauls for shopping. Communally rented hybrid cars may also be an alternative for various activities such as shopping. If children got accustomed to an implemented automobile-free environment, then the next generations would have an easy time in enhancing some of these necessary adjustments.

Major effects over implementation

Most mortgage firms are still worried about compromising the value of houses especially those meant for resale. They therefore fail to implement designs meant to curb automobiles. Home without provisions for cars are therefore not practical for most mortgage firms. Majority of the state laws in the U.S. still support existence of two parking garages spaces per residential house.

People have high suspicion over implementation of automobile-free environments, thus the reason why no major projects are in place today (Fox, p.106). Secondly, it is not easy to share hybrid automobiles in some communities due to high rates of transfers. Some people move in and out rather quickly for an enhanced sharing.

Lastly, the main reason to give up the automobile ownership or usage depends on the need for quality and healthy lifestyles. How would it feel to know that your children are safe form automobile related accidents, which are possible occurrences even by the doorsteps? The decision depends on specific personal reasons.

Disadvantages of Automobiles

Cars have various negative effects such as reduction of revenue on the railroad due to reduction of passenger trains. The cities transport systems that use electric lines also fell out due to availability of cars as a cheaper, comfortable and easily accessible means (Aldrich, p.213). Cars also affected the trolley system. Problems of congestions and pollution are definite indications that America is better off without automobiles. We should advocate for better, healthier automobile-free environments.

Works Cited

Aldrich, Mark. Death rode the rails: American railroad accidents and safety. New York, NY: JHU Press, 2006. Print.

Fox, William. International commercial agreements: a primer on drafting, negotiating, and resolving disputes. Netherlands: Kluwer Law International. 2009. Print

Herzog, Lawrence Arthur. Return to the center: culture, public space, and city building in a global era. Texas, TX: University of Texas Press. Print. 2006.

Stave, Bruce., Burmeister, Laura., Neagle, Michael., and Papa, Leslie. Red brick in the land of steady habits: creating the University of Connecticut. England: University Press of New England. 2006.Print.

United Nations Conference on Trade and Development (UNCTAD). Elimination of TRIMs, the experience of selected developing countries. New York, NY: United Nations Publications. 2007. Print.

Introduction

The issue concerning bus fees has been rising steadily in the past few years nationwide. In many schools of such states as New York or California parents have paid school transportation fees, but at the same time in some states like Indiana or Massachusetts there were no school bus fees. Parents have been working very hard to pay school fees for their children and the free transport has been a great incentive not only for the parents, but also for the students.

Of course, when school bus fees had been introduced in such schools the majority of parents opposed it. However, not many parents have expressed their point of view. It was just accepted that students would pay for their transportation.

Only a few attempts to raise the question were undertaken, though the issue needs thorough discussion. For instance, Leister schools did not require funding for school bus services from parents several years ago. Basically, it is possible to keep it that way even in the period of economical constraints which both schools and parents are experiencing.

The bus fees hike have been introduced recently. In Fontana, parents started paying the introductory bus fees hike in 2005 (FUSD). The fee is $120 per child per school year which is quite expensive, especially if a family has several school-aged children (FUSD). Nowadays, every state and every county faces many financial difficulties. For instance, the state of Indiana had to resort to a $300 million cut in state education spending (Wilson).

Of course, Leicester has also certain financial constraints which made school boards to introduce bus fees. Admittedly, school boards try to make it affordable for as many families as possible. For instance, according to FUSD there are certain groups of student eligible to free transportation or reduced bus costs: those qualifying for free or reduced lunch (FUSD).

Other ways

However, there are many students ineligible to free transportation which does not mean that it will be affordable for their families, so they will have to find other ways: parents will have to take them to school, or students will need to walk, they will have to use public transport. Of course, this will cause additional inconveniences for families. They will spend more time solving the problem of getting to the school rather than concentrating on their classes.

Parents will need to take their children to school much earlier so that they could get to their work on time. Some will even need to reshape their schedule. Besides, not all families, especially in inner-city neighborhoods, have cars. Thus, there is not much of a choice for many families and students will need to walk to their schools. Students going to school on foot will need to join groups because, unfortunately, there are many quite dangerous neighborhoods.

It is very good if there are several (at least two) siblings in a family, but some families have only one child who will have to join other children to go to school and go back home. Apart from financial problems and safety concerns there can one more issue which rises from the bus fees introduction, which are psychological issues. Thus, students who cannot afford transportation will feel uncomfortable and can face mockery from the part of other students of their school.

The kids-walk-to-school

For example, the schools offer two programs of transport, the bus system and the kids-walk-to-school, which insinuates some form of discrimination. To be part of these programs means having the money or not and lack of money is not a choice. It is simply irrational to justify walking to school due to lack of bus fees as a way of improving health to both the students and the environment.

Moreover, free school buses service is, in fact, the best alternative for cities (and school boards) and the entire country to save money and improve environment. As far as saving money is concerned, according to American School Bus Council total U.S. savings in fuel cost per year by students riding school busses are more than 6 billion dollars. As for the environmental issues the amount of emissions will increase since parents will have to drive their cars to take their children to school.

Thus, the introduction of eco-friendly technologies (hybrid buses) in school bus services will not work. It will become a waste of money for the city budget. For instance, Clean School Bus USA encourages schools to join the movement to improve environmental situation in cities. They suggest retrofitting (upgrading buses) and replacing the oldest buses (U.S. Environmental Protection Agency).

They also suggest a very interesting program which, to my mind, can help school boards to save money and join environmental protection movement (spending no dollar on it). This program presupposes elimination of unnecessary public school bus idling (U.S. Environmental Protection Agency).

Thus, Clean School Bus USA calculated that it is possible to save $120 a year on each school bus after 20 minutes idling reduction (provided, fuel gallon costs $4.00). It is only necessary to think over routes more thoroughly and make the drivers acquainted with some driving secrets available on the official website of U.S. Environmental Protection Agency.

Thus, it is clear that the bus fees will cause many inconveniences, money waste and even more serious problems like safety issues. Basically, the schools should not shift their responsibility of ensuring satisfaction of students needs to the parents. When schools introduced the bus system, they seemed to be delegating their responsibilities of ensuring the safety and transport of the students to the individual parents.

On the other hand, it is difficult all across America and we all must tighten our belts and make sacrifices. However, these sacrifices should be thoughtful. Education should not become a tool of overcoming financial constraints by school boards since education is the basis of the nations wellbeing. Schools, as well as household budgets, are significantly constrained  making most parents unable to shoulder the responsibility of paying for their childrens school transportation.

Conclusion

The school boards should look for other means to solve the problem of their budgets cut. In the first place, it is necessary to rethink routes and the use of school buses (to reduce idling, remove unimportant drives and routes, etc.). It is also possible to raise funds for school bus service.

For example, charity can be a good source of funding this service. Besides, parents should express their position against the introduction of school bus fees. Thus, parents can and should influence the situation; they only should be more organized and address respective school boards. It is necessary to start the discussion and finally find an appropriate solution of the issue.

Works Cited

Arsenault, Charlene. Paying to Ride the School Bus  Do You Care about the Fee? Oh, and Your Towns Politics? The Daily Leicester. 2010. Web.

Clean School Bus USA. U.S. Environmental Protection Agency. 2008. Web.

FUSD  Transportation Services. Fontana Unified School District. Web.

National School Bus Fuel Data. American School Bus Council. Web.

Wilson, Charles. Indiana AG Says Schools Cant Charge Bus Riders. Wish TV. 2010. Web.

Advertisements are the powerful tools to draw the audiences attention to the definite product or service and influence the customers attitude to the brand. Effective advertisements need to contribute to increasing the customer loyalty in relation to the definite product or brand.

That is why, much attention is paid to the visual and verbal codes provided in the advertisement because they should evoke certain emotions and reactions in order to stimulate the product or service selling (Rayner, Wall, & Kruger, 2004).

To understand the particular features of the advertisement in relation to its impact on the target audience, it is important to pay attention to the printed advertisement developed by Lexus for the Western audience and markets to promote 2013 LS F SPORT (Lexus LS Marketing, 2012).

The advertisement provides both the visual and written messages to attract the audience to the product and evoke the desired associations which can be effective to stimulate the customer in choosing this product instead of the other one.

The advertisement represents a car of the discussed model as the centre of the illustrations composition. A man and a woman are walking on near the car. They are physically attractive and fashionably dressed. The woman is looking at the man. The background is formed by the people participating in the party who can be observed behind the glass wall. Different tones of the metallic grey and green colours are used in the picture.

The above-mentioned details provide the description of the visual part of the advertisement without references to its meaning. Thus, this description adds to the discussion of the advertisements denotative meaning (Rayner, Wall, & Kruger, 2004).

However, it is significant to pay attention to all the details of the picture in order to discuss the connotative meaning of the advertisement. These attractive man and woman can be discussed as the owners of the top-class car. The persons facial expressions emphasize the feeling of pride in relation to owning the deluxe car. The woman is looking at the man with admiration because this strong man can afford everything he wants, including this car.

To accentuate the association of the car with luxury which is available for the successful persons and leaders, the blinking metallic colours are used. The potential customer receives the message that the owners of the car are also sparkling as the real stars.

The advertisers use the typical associations of the peoples success with sparkling and metallic glance in order to provide the definite message. The people who make the background of the picture are excluded from the main composition because only three stars can be present, the owners and the car.

The slogan provided in the picture helps emphasize the audiences associations with stars in spite of the fact the models are not the famous people. The slogan states The world is your stage. Make it a memorable performance (Lexus LS Marketing, 2012). The words memorable performance are capitalized to draw the audiences attention to this message and strengthen the association with success, stars, and necessity to live the full and vivid life.

Nevertheless, the potential customers of cars of that class usually need more information about the product. That is why, the additional information is presented in a rather expressive style below the slogan in order to describe the advantages of the model. The associations with the stage are strengthened with references to the phrase You open the door and the show begins (Lexus LS Marketing, 2012).

The necessary information about options which can be interesting for those people who intend to buy the car is provided in a small size font at the bottom of the poster. The text message helps not only explain but also accentuate the visual image in order to provide the audience with more vivid and clear chain of associations.

From this perspective, the advertisement aims to attract the customers who belong to the upper middle social class because they want to accentuate their status or who are the representatives of the upper social class because it is their style of living. The meaning is imposed by the advertisement, and it is based on stereotypes. The advertisers combine the stereotypical visions with the accepted pictures of wealth, glamour, and luxury.

The character of the text message helps attract businessmen and people who are interested in the car as the source of comfort for them. It is important to note that the emphasis on luxury and the public life on stage is necessary to accentuate the class of the car advertised. The target audience should be determined with the help of these messages.

Appealing to the representatives of the upper class, the advertisement can also affect the other audience because of evoking the desire to belong to the upper social classes or to improve the social status.

Thus, the advertisement promotes the definite culture associated with glamour and luxury. The car is presented as the symbol of the luxurious life which is available for respectable persons. That is why, the potential customer can feel the strong desire to buy this car.

References

Lexus LS Marketing [Image] (2012). Web.

Rayner, P., Wall, P., & Kruger, S. (2004). Media studies. USA: Routledge.

• Title.
• Names: Randal L. Hall.
• Title of the Article: Before NASCAR: The Corporate and Civic Promotion of Automobile Racing in the American South, 1903-1927.

Authors Main Thesis

Although scholars have only begun to investigate automobile racing, an examination of this popular sport has the potential to reveal much about the region. Understanding racings early years in the South requires first the correction of current widespread misconceptions, among scholars and the public alike, about its origins&.. the emergence of automobile racing in the South between 1903 and 1927 &establishes the new sports importance as part of the larger processes of economic development, civic boosterish, cultural change, and regional interaction in the early years of the twentieth century.

Supporting Evidence

The author vividly defends his thesis analyzing the current situation and understanding of the automobile racing and then justifying his stand on the topic. The mistaken belief that has often been portrayed of racing in the American south is that it bears its origins among stereotypes within the region of South America. His stand on the issue is that racing bears a rural footing and origin. He however indulges too much on secondary concerns and fails to clearly state his position in as far as what should be the truth about racing.

He gives an exposition of the mythical origins of racing and provides that details of its claim. He explains racing as a function of society to the fans as well as the racers. Racing was a place for the people to satisfy their quest for technology and show off they advancements in technology.

To society racing was a mode of uniting and reconciling the antagonistic regions where the southerners cheered their opponent northern drivers and in effect solving the provincialism. He however indulges too much on the details of the subjective aspects of the thesis statement at the expense of the actual issues in the article. Elements of myth for instance are presides the main objective of the thesis.

What Are the Strengths and Weaknesses of the Thesis?

Title

The title fails to substantially represent the substance of the article. The thesis suggests a historical antecedent and account of racing in the south. The title on the other hand incorporates to a great extent the primitive aspect of the racing enterprise.

Thesis

The thesis statement on the other hand gives a good analysis and summary of the objective of the article. It appropriately represents all the information in the article and therefore forms a strong point in the essay. One does not need to read the whole article to know what it aims to accomplish.

Supporting Evidence

The author supports the topic with adequate background information and research. The literature review justifies the reason for the claim and brings the reader up to speed with the current opinion and stand concerning racing. He also provides satisfactory justification of his stand by providing evidence in the contemporary racing society. He moves on to provide a further exposition of the relevance of the racing enterprise to the south, which gives importance and reference value to the article. He makes adequate reference to peer reviewed articles and references which makes the article an authority.

Strengths and Weaknesses of the Thesis

The article has 83 references all of which are peer reviewed. This makes it an authoritys piece of information. It also makes adequate justification of every claim through reference and citation keeping the margin of personal opinion trimmed and hedged against.

The article uses enough words to support each claim ensuring that it gives enough background and discussion for each claim. This is generally a good article and an authority in as far a racing in the south is concerns. It assembles all the relevant interests and makes a unified justification and critique of the various claims. These however occupy the greater part of the article and leaves little room for discussion of his personal stand or proposition.

Executive Summary

The question as to whether companies should lease or buy vehicle can best be answered from a case by case analysis. There are several issues that first have to be addressed in order to answer the question.

Businesses need to bear in mind that both options are financing alternatives. When it comes to that time when a business needs a car, chances are high that most businesses will first investigate the monthly payments and go for the cheaper option (Sweeney, 1999). However, analysts argue that businesses do not need to rush for the cheaper options.

They first need to stop and consider all the things that are required to form part of their decisions. This study sought to evaluate the two options of either buying or leasing a car for businesses entities by weighing the benefits and disadvantages involved with both. Drawn from the findings, it is better for businesses to lease a car than buying a new one especially if the business depends on the car for its daily operations.

Introduction

There is a difference between leasing and buying a car. In leasing, a user pays for using the car and not for the car itself. The payment of the lease does not only cover the cost of using the car but also the depreciation that comes about as a result of using the car. Just as in most assets, cars depreciate in value over time.

Therefore, the lessee is expected to make payments for using the car within the period of the lease. Sometimes the monthly payments can shoot up if the lessee uses the car frequently and vice versa. The lessee is also responsible for the maintenance of the car until the end of the lease period (Az-Oxlade, 2000). Once the lease term ends, the lessee has the option to buy the car but at its residual value at the time of return. Even though this explanation can look simple, leasing a car requires one to consider a lot of factors.

Unlike leasing, buying simply refers to making purchase for the whole car. Once a company or a business makes the full payment for a car, it owns it. They do not have to return after a period of time. However, the buyer has the option of selling the car at its residual value or trading it in with another car (Henry, 1997).

Since the last three decades, the idea of leasing cars has become common among people because of its attractive nature. Leasing a car offers the user an opportunity to drive a new one after the end of the offer. Car dealers have been using appealing ways of advertising their deals to encourage people to lease for cars.

For instance, some of the dealers would offer low attractive payments and no down payment. Generally people with the desire to drive new cars after a period of few years should opt for the leasing option. However, it is still possible to buy a new car after a period of few years and trade in or sell the old one.

Problem definition

One of the biggest problems that business face in regards to having a car is making the decision to either have the car leased or bought. Both options have their positive and negative sides. However, the choice remains with the business owners.

Research objectives

This report seeks to evaluate the two options of either buying or leasing a car for business owners. It assesses the advantages and disadvantages of both sides and seeks to develop a solution for business owners who are faced with this dilemma.

Findings

Leasing has been described by many to be an easy way of getting a car. The process involved is very simple and one can easily be appealed into securing a lease offer. During a lease, one makes monthly payments for using the car. Leasing has an advantage for businesses because they do not have to own the car.

The cost of purchasing a new car may be high for a business to afford. However, the same business may have the finances to make monthly payments for leasing a car and use the car to aid its operations. The monthly payments for leasing a car are usually low and sometimes one does not have to make a deposit.

The payments can be considered as tax write offs which is an advantage to the lessee. In other words, tax write offs imply that the business will pay for the car, as a result money will be saved. A business can also insure a leased car in case of theft, damage, or loss; although the insurance policy is usually high than the normal policy for purchased car because of the nature of circumstances involved (Chappell, 2008).

If the car is to be owned by a business, tax considerations have to be taken into account. The business has to ensure that it has a steady flow of cash in order to get into a lease deal. This will enable the business to confidently make the monthly payments without failure. During the process of price negotiation, it is important for businesses to disconnect the negotiations from the financing methods. The two areas are completely different since they involve separate issues (Stoller, 2011).

Leasing is also good for businesses because they do not have to pay for the cost of repair. Leasing is only done on new car. One cannot lease old cars as it is better to buy an already used car than leasing it.

If a car is to be purchased and used primarily for the purpose of business, companies have to consider the internal revenue code. The code helps to create limitation on the annual deductions resulting from depreciation. In this way, a company will find it hard to write off the car within a short period of time. If the car is an expensive luxurious car, the period required for a company to write it off will even be higher.

Another important consideration is the length of time that the car is to be used. For a business, it is better if cars are renewed after a period of time. This ensures that the cars used are constantly in good condition to service the operations of the business. New cars make work more efficient and bring good reputation and a positive image to the business.

Assuming that the leased car is in good shape at the end of the lease, the company only needs to hand over the its keys and be given the keys for a new car, of course after signing a new deal. However, if a company had bought the car brand new, three years later, it will require selling the car. The process of finding a buyer for such a car is tedious and sometimes they may end up settling at a raw deal.

On the negative note, leasing may become costly especially if the lessee is exceeds the allowed mileage. There are additional costs charged if a user goes beyond the mileage allowed. The charges are based on per-mile covered. The charges can range from 10 to 20 cent per mile.

Normally, the permitted mileage is 15000 miles every year. In addition, the only time when one is expected to pay for repair is when the car is wrecked beyond tear. Another disadvantage of leasing is that when one wants to bail out from the agreement, the charges that they have to pay may be too hefty depending on the leasing company. The charges can be as high as a six month worth of payment.

Conclusion

It is cheaper for businesses to lease a car if they intend to meet this need of regularly renewing cars. If for instance, a business is to buy new cars after every 2 years, there might be a problem selling off the cars or trading them in with other cars. A close analysis of the both situations reveals that leasing is the better option in such a situation.

Leasing out a car is more disadvantageous to individuals using the car for personal use than to than to companies using the car for business use. A business may not have to worry about having equity as long as its operations are efficient and effective. This implies that owning a car for business use may not always be necessary. As long as the business is confidence of a regular cash flow, then the issue of making monthly payments becomes simple.

References

Az-Oxlade, G. E. (2000, July 7). Thinking of leasing a car? Prepare yourself and get a better deal. Chatelaine, p. 28.

Chappell, K. (2008, March 5). Auto Financing: leasing versus buying. Ebony, p. 56.

Henry, E. (1997, April 4). Buying a car: The dream and the reality. Kiplingers Personal Finance Magazine, pp. 79-82.

Stoller, J. (2011, September 6). Buying or leasing vehicles? Purchasing B2B, p. S22.

Sweeney, K. (1999, February 5). How To Decide Between Buying And Leasing A Car. Investors Business Daily, p. B01.

The introduction of the bus system has forced many parents to give an extra dollar to the fees they have been paying for their children. Children have been enjoying free ride to and from their respective schools but due to the economic constrains, the Fontana Unified School Districted has decided that every child must pay $120 as bus fees. From the economic perspective of the school, this increase is in tandem with economic status of the country, but from the parents perspective, it is quite unfair.

The increase of bus fee from $0 to $120 is not rational because parents are also experiencing the economic constrains that the schools are experiencing. What the schools are doing is to cushion themselves against economic constrains at the expense of the parents who are already overstretched by paying the school fees.

The drastic introduction of the bus system to the schools is a novel idea but the exorbitant bus fees do not fit well in the economic status of the parents, since a parent who has two or more children will experience the brunt of this new bus system. Parents have been working very hard to pay school fees for their children and the free transport has been a great incentive not only to the parents, but also to the students.

Given that a childs education is paramount both to the school and to the parent, how can the school be very insensitive to the need of improving quality education of the students? It is true that there are expenses occurred in running free transport for the students but drastic change of policies does not justify the need to for the bus fees.

The consequences of introducing bus fees will reverse the objective of education since many students will not afford and can decide to walk to school, others will use private means, while others will resort to truancy. In addition, students who walk long distances to their respective schools through dangerous parts of the district will risk their lives.

All these factors have cumulative effects of lowering school attendance and quality of education. Due to these dire consequences, the schools should reconsider their policies whether the priority of the education lies in the bus system fees or the quality of the education they offer. The educational fees should be in a package tailored to the students needs and thus the schools must own up the responsibility of providing all educational needs of the students including the bus fees.

The schools claims of offering two programs of transport, the bus system, and the kids-walk-to-school, insinuates some form discrimination. To be part of these programs means having the money or not and lack of money is not a choice. It is irrational to justify walking to school due to lack of bus fees as way of improving health to both the students and the environment. Education must be accessible and affordable to all students and not only a few who can afford transport.

The schools should not shift their responsibility of ensuring satisfaction of students needs to the parents who have already paid the fees. When schools introduced the bus system, they seemed to be delegating their responsibilities of ensuring the safety and transport of the students to the individual parents. Who knows, next they will say every parent must own a private teacher to aid in the teaching of the students. The schools should be responsible for all the needs of the students and offer them in one package affordable to the parents.

Consumer behavior

Consumer behavior is the critical analysis of how, when, where and why people purchase or not purchase a particular commodity. It brings together the elements of economic, individualism, social status and sociology (Placeholder 5) (Holbrook, 1999). The main aim of consumer behavior is trying to comprehend the purchasers decision-making process made by a group or individual.

It involves critical analysis of a particular consumer traits, such as behavioral variables, as well as demographics in the urge to comprehend an individual wants (Sheth, 2008). Moreover, it tries to look at the influence on the consumer of a particular product of other parties, such as the reference groups, family, allies and the society in general (Aron, 2007).

Consumer is influenced by different factors namely internal and external ones. The internal factors are those that the consumer already possesses within himself or herself (Mcneal, 2007). They include the personality, attitude towards a product, consumer life style, e.g. miser or spendthrift, his/her understanding of the product, consumer perception and motivation (Rayne, 2002).

External factors can further be divided into two: the marketing factors and the environment factors. Marketing factors include the commodity the consumer wants to buy himself, the price that commodity commands, the area the commodity can got and the advertisement that the product receives (Otto, 2005).

The environment factors include technological advancement, political stability, economic situation within the country, and cultural factors. The consumer who faces all these factors which are needed to make a decision, thinks that they will satisfy his needs (Mcnel, 2007).

The consumer will make a choice on the product he has to buy. Thus, he/she decides on the brand that he thinks is best for him, the amount he is willing to part with the product he has chosen, the supplier whom he thinks best fits his needs, and the moment or the time when he wants to make the purchase (Hwan, 2003).

With all these in mind, it is the mandate for the marketing companies departments to know how to convince the consumers in order to prefer their products and develop loyalty to them. This can be achieved particularly in the car industry by ensuring that the companies manufacture cars which are of high quality, efficient, effective and the ones, which meets the consumer needs.

Research problem and objective

Lack of adequate information about the factors affecting the consumer buying behavior in car industry in Hong Kong has led to the fact that many companies are not reaping the maximum benefits from the market, which leads to low sales turnover.

Many industries remain stagnant because the Hong Kong consumers cannot purchase the cars they manufacture. This leads to great losses, which can be curbed if these companies understand the consumer buying behaviors. These knowhow can only be realized if more studies are carried out (Yegon, 2007).

The objectives of this study are

• To collect data from different car owners in Hong Kong through questionnaires.
• To identify the factors that affect the consumer buying behavior in car industry in Hong Kong.
• To identify the correlation of the consumer behavior with the independent variables.

Significance of the study

This research will be very vital to car industries in Hong Kong since it will enlighten them on how to meet their consumer needs. This will help them avoid losses caused by dead stock, as well as increase their sales returns. It will also help them retain their consumer loyalty.

The public will also benefit because their needs will be met to their satisfaction, thus reaping more utility from their money. The government will also benefit from this study since an increment in the profit of car industries will lead to higher taxation, which will lead to economic development in the country.

Literature review

According to research carried out by J. Paul Peter and Jerry C. Olson (1994) as a benchmark to evaluate car buying behavior, they state that there are three major factors that affect consumer buying behavior in car industry. These factors are behavior, cognition/affect and the environment.

Cognition determines the perception that consumers have to have in the external environment and the consumers thoughts, which may be for or against a certain product, thus affecting consumer decision making. On the other hand, behavior involves the deeds of the consumer such as window shopping, watching television advertisements or impulse buying (Wagner, 2008).

The last factor is the environment, which can be micro and macro. Macro environment includes broad factors such as the political economic demographic factors, and the climatic condition of the area the consumer is residing. The microenvironment involves the influences of the family members and associate groups. Lau et al. (2006) assume that there exist seven attributes that determine the consumer brand loyalty.

These attributes are sale services, quality of the product, lifestyle of the consumer, advertisement of the product, storage environment and the price consumer needs to pay in order to get a product.

The ease in which one is able to access the showroom is the security of the consumer while in the showroom. In the Journal of Economics and Management 2(2): (2008) it is stated that consumer-buying behavior will be influenced by brand loyalty.

Brand loyalty makes the consumer repurchase the brand repeatedly. This is due to trust and effective performance of the commodity (Chaudhuri and Holbrook, 2001). When consumers have loyalty to a certain brand they will go to encourage their friends and family members to buy the same brand. Due to this reason, the car industries need to ensure they have really satisfied their consumer needs.

Bonoma and Johnstone (1978) stated that the relationship factors between the seller and the consumer would determine the consumer behavior. They suggested that there should be a strong relationship between the buyers and the sellers of given products (Huppertz, 2003).

The good rapport between the buyer and the seller has to be encouraged; this is because consumers are the most convincing agents to potential consumers. If there happen to have a strong and friendly relationship the car industries will save a large amount since they do not need to use much money on product promotion.

Research hypothesis

H1. Economic factors positively affect the consumption behavior in Hong Kong

H2.Personal factors positively affect the consumption behavior in Hong Kong

H3. Sociological factors affect the consumption behavior in Hong Kong

H4. Psychological factors positively affect the consumption behavior in Hong Kong

H5. Marketing factors positively affect the consumption behavior in Hong Kong

Research Methodology

Population and Sample size

A population of this study is defined as 1.2 million people who are the target customers of the car industry in Hong Kong. The sample size is taken to be 1200 persons, who comprise the people driving; the old, and young, female and male were selected at random. People with different life style, social status and different financial status were selected as the sample.

Data collection method

The researcher uses both primary and secondary data to analyze the factors affecting consumer behavior in car industry in Hong Kong. Primary data was obtained using questionnaires which respondents were requested to fill after being briefed on the aim of the study.

Questionnaires were clear, brief, simple to understand and straightforward, thus easy to be understood by every respondent. Secondary information was found from past studies on the topic as well as the books.

Questionnaire design

Each questionnaire will have 25 clear and easy to understand questions, which will go to assist in the understanding of the factors affecting consumer behavior in car industry in Hong Kong. Pilot Test has to be carried out among 20 car owners to ensure the respondents well understood the way the researcher designed the questionnaire.

Data analysis

The Interviewer Quality Control Scheme (IQCS) will be adhered to make sure that different validation and administrative procedures are in agreement with global standards and to maintain the efficiency of the data collected. Missing data will be considered untrue and will not be used in the analysis. ANOVA, Chi-square as well as the Contingency Tables will be used.

After which Cluster Analysis will then be employed to highlight various segments by the chosen variables. Euclidean distance shall be employed to evaluate the distance. Non hierarchical method (Hair 1995) will be used since its convenient to adjust when dealing with a large sample. The outcome of these will be used to identify factors affecting consumer buying behavior differed across all the dependent variables.

Proposed Research Schedule and Action Plan

Reliability

Quantitative research has numerous advantages such as; it takes short time to collect data, it is relatively cheaper due to short time taken in collecting data, it is objective i.e. it has specific objectives and the data collected is used to test hypotheses (Ram, 1995).

Quantitative research improves the reliability as it has several set backs being ineffective in terms of validity (Mark, 1997). To enhance reliability and validity, the pilot test had therefore to be carried out to act as a manipulative check.

Generalizability

For generalization, Quantitative Research is preferred to Qualitative research as result of a large sample size used.This analysis is also very vital when sellers develop marketing strategies. Generalization is affected by non random sampling method since samples do not represent the whole target population (Trenor, 2009).

Limitations

For this research to be successful, an enormous amount of money is required, which is not available. The respondents may give false information, which may lead to inaccurate analysis, and conclusion.

Since Hong Kong is a vast area, simple random sampling is not feasible, thus a sample of 1200 is not conclusive compared to a population of about 1.2 million car drivers. People being dynamic and not static the data collected today together with its conclusions may not hold water in future. Due to personal bias distribution of questionnaire and filling them may not be so representative.

This research requires more time in order for it to be more representative, which is not available for now, thus further research need to be conducted in order to ensure true findings and conclusions are made.

Conclusion

People have different preferences and tastes, thus the motor vehicle industries must strive their level best to meet the needs of each consumer. To achieve this, they have to ensure that there is a good relationship between them and the consumers.

The product promotion must portray true information about the product since a good percentage of consumers purchase their cars after getting information from the media, and if the information turns to be accurate, there will be a consumer satisfaction, which leads to brand loyalty.

Efficiency and safety should be stressed more as many consumers are much concerned about the amount of running the motor vehicle and the safety of their lives.

Recommendations

The Hong Kong car industry needs to invest heavily in research in order to ensure the cars that they manufacture are bought as fast as possible. This is only possible if the industries are able to know the features, which the consumers prioritize when they are making decisions on the type of car they want to buy.

References

Aron, D., 2007, Car choices. Consumer decision making on cars , 34-35.

Holbrook, M.,1999, Consumer Behaviour. Chicago: Routledge press.

Huppertz, J., 2003, Relationship between sellers and buyers. Good consumer relationship , 60-62.

Hwan, D., 2003, Customers experience, opinions and attitude satisfaction. Consumer satisfaction and disatisfaction , 45-47.

Mark, K.,1997, Methodology of education research. Education research, 14-15.

Mcneal, J., 2007, Consumer Behavior in Hong Kong. Chicago: Rinfo.

Mcnel, J., 2007, Consumer behaviour. Brand loyalty on cars , 96-99.

Otto, S., 2005, Consumer satisfaction. Consumer feedback , 94-95.

Ram, J.,1995, Project management. Best research methods , 65-67.

Rayne, C., 2002, Consumer complaining behavior. Consumer complaining behavior, 123-126.

Sheth, N., 2008, Research in Consumer behaviour. London: Oxford press.

Trenor, P., 2009, Project management. London: Oxford Press.

Wagner, T., 2008, Methodology of Education. New York: Cengage Learning.

Yegon, L., 2007, Consumer Behavior. New York: Cengage Learning.

The Australian market of automobiles has experienced a drastic increase in prices due to the global shortage of semiconductors during the COVID-19 pandemic. At the same time, the supply deficit of new cars stimulated the market for secondhand vehicles, leading to a significant increase in prices¹. Experts predict the continuation of this trend for at least twelve months until the supply chains return to normal functioning². Concerning statistics, the overall car sales accounted for 917,000 in 2020 and 1,050,000 in 2021³. This trend demonstrates that supply is gradually returning to its pre-pandemic numbers, although these numbers are still lower than the sales in 2018.

For the specific car, I have chosen the 2012 Mazda CX-5 Maxx. According to the data, the price of the vehicle has increased from $14,000 in 2019 to $20,000 at the end of 2021⁴. Depending on the conditions and specs, the price for the used car at the beginning of 2020 was approximately $10,000 -$12000. At the beginning of 2021, most listings accounted for nearly $15000-17,500⁵. Based on this data, it is possible to create the demand and supply (D&S) model for the 2012 Mazda CX-5 Maxx in the market of secondhand cars (see Fig. 1).

The graph demonstrates the pricing increase of 2012 Mazda CX-5 Maxx used cars from the start of 2020 to the beginning of 2021. The analysis supports the empirical data concerning the boom of the secondhand car market in Australia. However, if the expert estimations are correct, the situation might change drastically in 2023. In this case, the prices of the 2012 Mazda CX-5 Maxx might reduce to approximately $8000-$10000 per vehicle, depending on the specs and conditions. Ultimately, the supply chains will return to normal, leading to an overall decrease in prices on the market of secondhand cars in Australia in 2023.

Bibliography

Alexis Carey, Experts Reveal Why You Should Wait to Buy a Car as Industry Faces Soaring Prices and Supply Crisis,News, 2022.

Andrew Chesterton, Australian Car Market: Car Sales, Statistics and Figures,CarsGuide, 2022.

Byron Mathioudakis, How to Beat the Used Car Price Boom? Due to a Car Shortage, We Are Seeing the Price of Second-Hand Cars Skyrocket  Is Australia in a Car Bubble?CarsGuide, 2021.

Royce Kurmelovs, Secondhand Cars: Why Are They So Expensive and When Will the Prices Drop?The Guardian, 2022.

Footnotes

1. Royce Kurmelovs, Secondhand Cars: Why Are They So Expensive and When Will the Prices Drop? The Guardian, 2022. Web.
2. Alexis Carey, Experts Reveal Why You Should Wait to Buy a Car as Industry Faces Soaring Prices and Supply Crisis, News, 2022. Web.
3. Andrew Chesterton, Australian Car Market: Car Sales, Statistics and Figures, CarsGuide, 2022. Web.
4. Byron Mathioudakis, How to Beat the Used Car Price Boom? Due to a Car Shortage We Are Seeing the Price of Second Hand Cars Skyrocket  Is Australia in a Car Bubble? CarsGuide, 2021. Web.
5. Mathioudakis, How to Beat the Used Car Price Boom? Due to a Car Shortage We Are Seeing the Price of Second Hand Cars Skyrocket  Is Australia in a Car Bubble?

Introduction

Car design is a way of making both outside and inside of an automobile in a style, which integrates shape of the car with its mechanical ability. Automotive design involves vehicle development in the way it appears which includes its ergonomics. The design elements are usually divided into three important areas: one is the exterior design, which involves the design in the proportion, shape and how the texture of the surface of the vehicle will look like. This design is done first through making drawings either manually or electronically.

Then there is the development of clay or digital model. The other aspect is in interior design which defines where parts such as doors, and seats, among others, are placed. This aspect emphasizes mainly on the ergonomics and the passengers comfort. It goes through the same procedure as the exterior design of sketching, then designing the digital and the clay model. The last aspect in design is usually focused on trims along with its color. To achieve this, extensive research and development is usually involved.

Discussion

1950s Cars Design

The early 1950s gave rise to chrome on cars and stylists who influenced by ideas from planes and trains designed many automobiles. The 1950s saw emergence of the tail fin courtesy of Harley Earl who worked on aeronautical designs. The tail fin era was between 1957 and 1960.

The tail fin and chrome were most regarded as the design, which gave some of the outlandish cars ever designed in this era. Another revelation came in 1955, when Ford designed its model, which they named Ford Thunderbird. It was quite complex with rear exhaust, windshield, and front grill with fixed turbines (Hulbert, 2010).

Chryslers group designer by the name Virgil Exner was notable with his different style of cab forward also known as the Forward Look. An example of the Forward look design is a 1956 Plymouth Fury, as is shown in the picture below (Bell, 2003, p. 12).

General motors Harley Earl and Virgil Exner turned out to be very influential in this era. They competed with one another with tail fins that are more elaborate. Earl saw this as a ploy to marketing while Exner believed the fins helped the car while on the road. These fins were later on utilized to control cars in great speeds. In 1957, there was a new design called the Chevrolet Bel Air as shown in the picture below, which gives the extent to which the designers were willing to go (Hulbert, 2010).

In 1959, the previous designs were replaced with the Cadillac Series 62. This design was fitted with fins that were over 1ft high, and it had bullet lenses at the rearwards. This was regarded as a design icon and rates highly among all time American classics (Jain, 2004, p. 2).

The above picture shows the design of a tail fin 1959 Cadillac automobile which came up at the height of the tail fin era. Earl later came up with iconic designs together with his group to create such designs as Auburn 851, among others.

In 1959 saw a new design of Cadillac Cyclone, which was a fantasy of a rocket like, it, had a wheelbase of about 104 inches. It had an independent suspension and a top of clear plastic. It was coated inside using vaporized silver that it can resist sunrays and had electric sliding doors.

1960s

During this era, focus was shifted to vehicle speeds and acceleration as well as engine size. The designs that were available included Ford Mustang, Chevrolet Camaro, and Dodge Charger. These designs were fitted with vents all over which had no purpose at all but for just mere appearance. The Dodge Charger had a fuel tank capacity of 7.2 liters.

In this same era, there was consolidating into the big three of General Motors, Ford, and Chrysler together with American Motors. These firms dominated both the global market and the domestic market. In 1961, General Motors introduced three models. One was the Oldsmobile F-85, which was a sedan and station wagon powered, and it had a V8 engine. It was available for the period from 1961 to 1963. The Oldsmobile F-85 was later upgraded in 1964 to an intermediate car.

1970s Cars Design

This decade saw the introduction of the wedge and high profile cars. Examples of the cars of this era include BMW M1, De Tomaso Pantera, Lamborghini Countach, and Lotus Esprit. The 1970s ushered in an interesting design, in angular box lines, which became a trait in style. This was again copied over into the 1980s.

1980s Cars Design

The 1980s decade came with a trend of over indulgence, and the cars produced during this era were overpriced. It also witnessed the effects of materialism in that style was outdated, as most of the people wanted the expensive cars. The cars that were available at this time were the likes of Audi Quattro.

Though it looked purposeful and powerful, it had no style and was not beautiful in shape. Another model was the Ferrari Testarossa, which was quite unfamiliar from the traditional Ferrari lines. Among the easily recognizable inclusions in designs of 1980s was incorporation of a hot hatch. In line with this, cars like Peugeot 205 along with Volkswagen Golf, which are both GTis started penetrating the market and were popular with the product named above (hot hatch) (Diseno-art., 2011, p. 1).

1990s Cars Design

The effects of the styling traits from the 1980s extended to some part of the early 1990s. Later on some interesting shapes began to come up which were very organic with appearance looking much powerful like the Dodge Viper. The Dodge Viper was made in a more look of an animal than a machine. In 1992, an Italian design house called Ghia extended the organic form to another level with shapes covering the car. The front face of this car model looked like a prehistoric animal. In 1995, another design came in Ford GT90; this design was clearly the reverse of Viper. This new model utilized edge design as its policy to create new model (Anythingaboutcars, 2011, p. 1).

What the major point that change from the car design from 1950-2000

1950s

The main changes in car design covered areas such as fuel efficiency and output of the engine. In 1950s, major changes that took place in car designs included jet designs, among others. This design made cars quite fascinating.

1960s

This era saw the introduction of basic wedge profile. Later on, the engines of these cars were transversely mounted, and their bodies designed to support structural loads.

1970s

This period saw introduction of a utility that combined luxury along with capability of four-wheel drive. Another additional change was the inclusion of electronic anti-lock braking system. This era had the most changes as it also saw design of restraint airbags, seatbelts, and traction control systems. In addition, the era also saw inclusion of computerized engine system.

1980s

This era brought about the introduction of front-wheel drive cars along with compact cars, which had the advantage of being efficient in fuel consumption. This period also saw the introduction of the two-box minivan design in 1983.

1990s

This decade was quite memorable with the introduction of designs with hatchbacks. car bodies were designed to incorporate passengers as well as cargo.

Explain how material culture has been designed and used as relational media on car development 1950-2000

Automobiles play an important role in life since they ease travelling; their introduction opened opportunities for people to transport goods and services. Development in car designs also encouraged subjective democracy since people could go to their places of choice. Moreover, Car development brought about power, style, and a way of identifying each others taste and style in society. Automobiles were much friendlier to the environment and were cleaner because it eliminated the animal waste in the streets (Raizman, 2003).

Influence of car designs between 1950 and 2000 on political, economic, and social as well as culture climates

Political

Development of automobiles has contributed greatly towards political change. This is due to increase in individualism and reduction of social interactions amongst people from diverse socioeconomic backgrounds. In addition, automobiles manufacturers urged governments to construct roads and conservatives have become more interested in promoting improvements in automobile industry (Raizman, 2003).

Economic

Developments in car designs have greatly influenced spreading of employment opportunities and planning of the city, among others. In addition, it has minimized rate at which people walk to work and use of railroads. Another area that has greatly benefited is infrastructure; this is evident in the increased number of good roads all over the world (Logix Microsystems Ltd., 2011).

Social

Social changes brought about by the effects of development in automobile industry include disconnection between communities due to reduced pedestrian-village interaction. It also brought less communication amongst neighbors because they rarely walk unless it is for exercise reasons.

Culture

The developments of automobiles brought about ease in travelling from one place to another since it was more affordable and convenient. This was mainly in areas not accessed by railways. Another change brought about by automobile development is that it made people keener while walking across the streets.

This growth also led to outward expansion of cities and development of suburbs. In addition, it encouraged people to live in less expensive areas, which are far from the city and encouraged interactions in neighborhoods. Another cultural change is in incorporation of automobiles in all aspects of life. These range from books to music as well as movies (Logix Microsystems Ltd., 2011).

Which mutations of styles and idioms morphed and ensued

The styles that are usually used in car design are quite varying and distinct in style of body design and its classification is not huge. The most common styles used are four-wheel drive vehicle, which are designed in such a way that all the wheels receive engine power at the same time. Another style is called the convertible design, which has a folding roof that allows for an open roof while driving. Thirdly, there is the station wagon design, which has same height from both sides.

Conclusion

For the past few years, car designers have engaged in designing products for ideas. A smart car is one that can get instructions from a user and execute the information by itself. An example would be a smart car. There are two elements involved in car design; these include ensuring a balance in ergonomics as well as aesthetics. Car design is a field, which keeps on changing and can never be said to be predictable (Anything about cars, 2011, p. 1).

References

Anythingaboutcars. (2011). The Fabulous 1950s Cars  Here is Their Story. Web.

Bell, J. (2003). Concept of Car Design: Driving the Dream. Rotovision. Web.

Diseno-art. (2011). From Concept Cars to Power Boats: Car Design History  a brief overview. Diseno-art.com. Web.

Hulbert, L. (2010). Car Design: Car Designs of the 1950s. Web.

Jain, S. L. (2004). Dangerous Instrumentality: The Bystander as Subject in Automobility. Cultural Anthropology 19 (1): 6194. Web.

Logix Microsystems Ltd. (2011). Car Designs: 1950-2009. Web.

Raizman, D. (2003). History of Modern Design. New Jersey: Prentice Hall Art.

Statement of Purpose

The aim of this report is to complete a market research analysis report of the automobile market in Australia that will help the Great Wall motors of china to undertake a strategic planning and make future growth plans.

The report will assess data and then make recommendations and conclusion to the management of the great wall motors that will the company to achieve its strategic objectives. The report will use Australian market information to identify and evaluate current and future market opportunities, demand trends within the Australian market and also make an analysis of product types and market segments that could provide growth for the company.

Current and Future Market Opportunities

Great wall motors, an automotive company established in 1976 is the leading SUV manufacturer in China (Global times 2010). The company got a licence to produce sedans in 2008 after two decades of producing trucks and has been hailed as one of the leading exporters of automotives in China, having entered the European market with an incredible success.

Currently, it exports it products in more than 60 countries and the major question in this paper is whether this company can succeed in Australia the way it has succeeded in Europe and other countries (China daily 2010).

How is Australian automotive market different from these other markets that the great wall motors has succeeded in? It is on record that Australia is one of the few countries worldwide that have facilities to design vehicles and produce them from scratch to dealership and most of the vehicles used in Australia are produced domestically (Lynn 2010).

Trends within Australia Auto Market

Australia is known for producing large sized passenger vehicles though there is a growing market for sports utility vehicles and sedans. One of the government policies that have had a huge impact on the Australian automotive market is global integration where the government has lowered the tariffs, providing the industry with an opportunity to adjust.

The government helped the industry to internationalize while at the same time making sure it remains stable. There are four major manufacturers operating in Australia. These are Ford, Toyota, General Motors and Mitsubishi. Productivity in the automotive industry has improved significantly over the last ten years due to the benefits of market liberalization (Unescap 2009).

Characteristics of possible markets

Unlike Australia which favours PMVs, not many other markets have a huge propensity for PMVs. Modern markets are tilting towards small fuel efficient vehicles which is also a trend identified in Australia. Due to the skyrocketing oil prices around the world, people have resorted to buying vehicles that can economise on fuel and that is where the great wall motors should focus its attention on.

Consumer segments for growth

There are two consumer segments that can provide economic growth for this company. These are the sports utility vehicles segments and the small trucks market segment. Sports utility vehicles have been a source of competitive advantage for great wall motors and will continue to be because the company has already made inroads into that segment. The small trucks segment is an area that has been avoided by many automakers meaning that foraying into this segment can provided the much needed growth.

Analysis of the Australian Domestic and Overseas Market Using Research Information

The Australian automotive industry has four major players and all the manufacturers are subsidiaries of overseas giants meaning that there is no indigenous automotive manufacturer in Australia. The size of the industry has grown over the recent years with sales hitting 0.8 Million annually with the passenger vehicles taking the biggest chunk of the market.

There are also heavy trucks being assembled in Australia but there is no production of light trucks in Australia at the present. All light trucks are manufactured outside. Local manufacturers confine themselves to passenger motor vehicles because this is the dominant characteristic of the Australian motor industry.

The long distance between major cities in Australia and transport infrastructure that can cater for larger vehicles has made the consumers to value the PMVs. Fuel prices in Australia are also low and the PMVs have features that make travelling in the country comfortable. However Australians are moving towards small inexpensive vehicles that facilitate travels within cities.

There may be stiff competition between the manufacturers of PMVs but the modern shift towards small inexpensive sedans has created an opportunity that can be utilised by any automotive manufacturer. One characteristic of the Australian market is their disregard for the sports utility vehicles. Apparently, no automaker in Australia assembles or produces sports utility vehicles locally. Australia imports sports utility vehicles from Europe, Japan and Australia.

There exists opportunities in Australia for light trucks and small sedans and any player planning to venture in the Australian motor industry must exploit the void in the Australian motor market. Australian major automotive markets overseas are concentrated in the Middle East, the leading consumer being Saudi Arabia which takes 50 percent of the Australian automotive exports.

Other leading consumers include Oman, Kuwait, Qatar and the UAE which means that any automotive maker planning to venture into Australia must be able to exploit these overseas opportunities that have already been created by the existing automakers (Kraft 2010).

There are certain characteristics of the Australian overseas market especially in the Middle East that any player has to factor in. The products that Australia exports to the Middle East are not the same as the products consumed locally. Due to the availability low prices of oil in the Middle East, fuel efficient vehicles are not easily marketable in the region meaning that Australia exports top of the range vehicles to this market segment.

As opposed to the domestic market in Australia, Passenger Motor vehicles are not in high demand overseas especially in the middle east where there are low populations and high preference for the top of the range vehicles because the consumers in most of these country are economically endowed.

Conclusions Based on Research Findings

From the above analysis of research information, it is evident that the Great Wall Motors may not easily find a market share in Australia. The Australian transport infrastructure and customer preferences favour Passenger Motor Vehicles which the Great Wall Motors does not deal in currently.

Currently there are four major competitors in the Australian motor industry meaning that an additional competitor would find it hard to compete with the existing automakers. The major disadvantage for Great Wall Motors is that it does not have the facilities to produce the kind of vehicles that are in concordance with the Australian market characteristics.

Secondly the Great Wall motors specializes in sports utility vehicles which are largely unpopular in Australia meaning that it would hard for the company to make a breakthrough in the country. However, the future of the automotive market in Australia may favour the Great Wall motors because as mentioned above, people in Australia are now inclined towards small inexpensive sedans.

Recommendations

Currently, the competition in this segment is not as stiff and there is an opportunity success in this segment. I would recommend that Great Wall Motors target this emerging opportunity in the Australian market because the company already have facilities that can create a competitive advantage in this segment.

Great Wall Motors should therefore set up plants in Australia for manufacturing the small inexpensive sedans and also transfer some of its SUV operations to Australia to target the Australian overseas market especially in the Middle East.

The current marketing strategies that Great Wall Motors uses by great wall marketing may not succeed in the Australian market because of the nature of the market that favours Passenger Motor Vehicles meaning that the company has to rework its marketing strategies to favour its new line of production. In Australia, the best strategy that can enhance its competitive advantage is market segmentation which will help the company to create niche markets (ABR 2008).

Market segmentation will help Great Wall Motors to develop products that suit different classes of people in the country ensuring that each class or market segment is served with its own type of product (Kynge 2009). This is the only strategy that will help Great Wall Motor to penetrate the tricky Australian automotive market. There are some additional resources that will be required to support the above recommendations for market segmentation.

This includes a strong and effective research team that will study the Australian market so that the company can make strategies that are in line with the preference of the Australian customers. The Great wall motor company also needs a string sales and marketing team that will promote the new products in the Australian market and also ensure that the company attains a competitive advantage in the new market (China auto web 2010).

The company also needs to invest in the state of the art plants to ensure it delivers products that are of higher quality than what the existing players deliver to the Australian and overseas automotive customers because this will be another source of competitive advantage for the company. All in all, it may not be easy for the company to excel in Australia but if the above recommendations are considered, the company can in the long run become a competitive player in this tricky automotive market.

References

Automotive Business Review (ABR) (2008) Great Wall Motor looks towards EU for exports. Web.

China Auto Web (2010) Great Wall Plans More KD Assembly Plants Overseas. Web.

China Daily (2010) Great Wall banned from exporting GW Peri mini car. Web.

Global times (2010) Great Wall Motors vehicles hit Cambodian market. Web.

Kraft, R. (2010) Shaking the Globe: Courageous Decision-Making in a Changing World. Melbourne: C.U.P

Kynge, J. (2009) Great Wall Motors Launches First Chinese-Made Cars into Australian Market themotorreport.com. Web.

Lynn, J. (2010) What is missing in the Australian automotive market. Web.

Unescap. (2009) Australian Automotive Market. Web.