Products, Services, and Prices in the Free Market Economy

Running head: PRODUCTS, SERVICES, AND PRICES IN THE FREE MARKET ECONOMY Products, Services, and Prices in the Free Market, Economy University of Phoenix MBA/501 ? Forces influencing Business in the 21st Century Instructer: KHALID ABDALLA Week 2 - February 25, 2006 Introduction The U.S. automotive foodstuff is the most competitive automotive securities industry in the world. With total vehicle gross revenue of nearly 17 million the market is also the largest. The problem for the automotive industry, and particularly the US domestic automotive industry, is that there is little if any growth in the total demand for automobiles in the united States. The total year over year sales ontogenesis for the past 6 years has essentially remained unchanged with sales of 16,879,000 units in 1999 and just 16,865,000 in 2005 (Bureau of transportation Statistics, 2006). This stagnation in demand creates a very competitive price building environment as the industry tries to maintain or add its market share in the face of belligerent contrasted competition. Problem Statement Daimler Chryslers Chrysler group can realize increased market share and profit US market through aggressive price strategies and the introduction of new exciting products that delight the customer.

In order for Chrysler to achieve the goals in the problem statement above, Chrysler moldiness first identify relevant randomness that can do the corporation make intelligent informed decisions. Of all the information available one of the first places Chrysler should look is the predicted demand for automobiles. crave for vehicles in the United States will not increase as the economy recovers. The lack of increase in demand is collectible to the automotive industries cushioning of the downside of sales during the earlier recession by offering high incentives and low financing We will in all probability not find a high degree of hold demand (Ballew: Industry lacks pent-up demand, 2003). Risks The challenge... If you want to get a full essay, order it on our website: Ordercustompaper.com

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