Can Detroit Make the Cars Customers Want? Essay

Ans AutoNation is having a problem with inscription because of the culture of ordering a customized vehicle for a customer, but such an order usu whollyy adds sextette to eight weeks to the transaction. The customer who wants to defile on the spot must choose from cars on the lot that the manufacturer has already configured, priced, and shipped. Despite manufacturer incentives and rebates to entice customers to purchase, dealers a good deal have a glut of new cars sitting in their lots for months at a time that no one wants to buy it. The swollen inventory and slow turnaround hurt dealers because they must borrow coin to pay for the cars the manufacturers ship.This has also become a problem for railcar manufacturers such as GM, carrefour and Chrysler due to their manufacturing processes which atomic number 18 not set up to quickly intensify production models and have been geared toward optimizing the efficiency of the production plant. Again because of the frequent change in consumer tastes which can shift almost overnight as gasoline prices rise or fall, or as one elevator carmotive fashion furore gives way to another.This problem is impacting the business performance of AutoNation and of the auto manufacturers because of following reasons. 1. It has become imperative for the manufacturers to keep their plants running regardless of demand to pay for the rising cost of employee health care and pensions. Whats more, auto workers must be paid most of their salaries regardless of whether they are working, so manufacturers want them working all the time. 2. Losing grocery take to the Japanese and Koreans3. Auto manufacturers are scrambling to revamp their product line up 4. The enlarged inventory and slow turnaround hurt dealers because they must borrow money to pay for the cars the manufacturers ship.2. What pieces of data do AutoNation involve to happen what cars to stock in each of its dealerships?How can it obtain these data?Ans The following pie ces of data AutoNation need to determine Preferences of car buyersMost popular configurationsThey put forth a major effort to consolidate the customer lists from its hundreds of dealerships. They uses proprietary analytic software as well as assistance from DME, a marketing firm with expertise in creating customized direct mail campaigns.3. What is AutoNations solution to its problem?What obstacles must AutoNation dominate to implement its solution?Ans They categorized their customers into groups with the help of DME and propriety analytical software and follow unique strategies for each category. They create sales pitches, service specials and so on for each group. In the past they tried to search for customers who want to buy the cars that they produced but now they are producing what customers looking for. And also AutoNation is trying to apply these principles of market intelligence to auto manufacturing. They use data mining techniques to determine the demand for each model a nd very accurate configurations of each model among thousands of possible variations that are most popular with buyers. With this they can focus on producing these vehicles in the numbers that the data dictate. Therefore they dont have to keep unnecessary inventory.To auto manufacturing, the auto nation must overcome this problem such as the rising of gasoline price and the demand to the pay for the rising of cost employee healthcare and pensions. It will be effective enough to bring production in line with the customers demand. It can lower the rising cost of gasoline and makes the company tax up to 90% total earn for selling fall guyed cars. And also it will help them to compete with Japan and Korean car producers. They can determine the demand for each model and very accurate configurations of each model among thousands of possible variations that are most popular with buyers.MIS In ActionExplore autonation.com, examining all of its features and capabilities. Then answer the fo llowing questions.1. How does this Web site help AutoNation forge closer ties with customers and potential difference customers?Ans The AutoNation web site offers vast experience in new and used car sales and service. They have a large selection of cars, trucks and SUVs on the web. That means that customers can easily find the vehicle that they want. It doesnt only help the customers to find the right price. Using their web site, customers can explore car pricing options with a quick quote or by payment, then research reviews and compare new and used cars that fit their budget and needs, check available auto financing and leasing plans, and search AutoNations huge auto inventory to locate the car, truck or sports utility vehicle that customers like.Their dealers carry popular brands including Acura, Audi, Bentley, BMW, Buick, Cadillac, Chevy, Chrysler, Dodge, Ford, GMC, Honda, Hyundai, Infiniti, Isuzu, Jaguar, Jeep, Land Rover, Lexus, Lincoln, Mazda, Mercedes-Benz, Mercury, MINI, M itsubishi, Nissan, Pontiac, Porsche, Saturn, Scion, Subaru, Toyota, Volkswagen and Volvo. Therefore customers have a vast collection to interrupt their choices. AutoNations dedicated sales force is available by email or telephone if customer has questions, need information or wish to achieve their transaction online. Or, if customers prefer to visit one of AutoNations local auto dealerships, he/she can search for the closest dealership through this site. That is how they have ties with customers and potential customers.2. What information could AutoNation collect from its Web site that would help it determine in which makes and models of cars are of most interest to potential buyers?Ans What type of cars customers looking for (used/brand new) What is the brand that customers looking for Which model When the vehicle is designed If it is a used vehicle then mileage In what period of the year people buy more vehicles Usually how much a person spend on a vehicle What is the customer total income What type of customers buy which brand