Assignment – Understanding a Marketing Environment
Your firm is considering the introduction of a new completely electric automobile into the U.S. market. The firm is currently undecided as to whether this vehicle should be an expensive, high-end product (e.g., Tesla Model S, P100D) or a low-priced product (e.g., Chevrolet Bolt). The firm does not produce vehicles of any type at present. Introduction of a new car will require a significant investment in development and in physical capital acquisition. The CEO has turned to you, the VP for Marketing, for guidance. Using the Cloudcab Small Jet Taxi Service case study in the Appendix to Chapter 2 as a guide, prepare a report which addresses the five components of the “Competitive Environment” section and which makes a recommendation as to whether the company should go ahead or should not go ahead with the investment. The five components that must be addressed are:
• Threat of New Entrants
• Rivalry among Existing Firms
• Threat of Substitute Products
• Bargaining Power of Buyers
• Bargaining Power of Suppliers
The paper must cover thoroughly all five components and include the go/no-go recommendation along with your reasons for the recommendation.
The specific course learning outcomes associated with this assignment are:
• CO-1: Gain a basic understanding of the dynamic world of marketing including the type and direction of the changes that are underway.
• CO-2: Understand the importance of marketing planning and the types of information and research required to reach business-to-consumer and business-to-business markets including how to target specific segments of each.
• CO-7: Use technology and information resources to research issues in international marketing.
• CO-8: Write clearly and concisely about international marketing using proper writing mechanics.