Management HW

Deliverables 3

Our world is fast-changing and the emergence of new technology after the other has led to a global change of direction. Security and time have become areas of concern in this era of a diminishing world. Car manufacturers have not been left behind with the making of sophisticated auto-mobiles. The issue of cost and simplicity has not been addressed appropriately in our planet. Everybody is thinking of how to come up with a very sophisticated and complex innovation forgetting other gadgets that are cheaper and equally important. An application called a car recognizer will go a long way in solving major problems in our daily lives.

The nature of the industry

The automobile industry has made huge prints of authority since its inception. Today, we have electric powered and solar powered vehicles. In China for example, there are electric powered vehicles and this is a just but a sign of more to come. This is a fast-growing industry and analysts are targeting an increase in the annual car production of more than 60 million cars globally. The automobile industry is quite broad and this paper will focus on cars only.

Porter’s five forces

The car recognizer app has no close substitutes in the industry. The “panic” key, although close, does not perform the function of locating the exact position. The app can attract huge returns as it is designed for all people and works without the need of an extra gadget. There are no legal or economic barriers into entry in the industry. The application is an emergent and likely to raise the curiosity of many car owners hence promote sales. To overcome legal barriers, registering the application with relevant bodies provides patent right against duplication.

The auto-mobile industry has a stiff competition for the manufacture of cars but not exactly for related supportive gadgets like the car recognizer app. Therefore, this app has a sharp edge in the market since there are no close substitutes.

To overcome the bargaining power of the customers, the car recognizer app has been tailored to meet pressing needs. Also, it is cheaply priced and does not require automation with other gadgets.In order to meet cost expectations of the buyer, I have negotiated with the supplier of equipment used for lower prices. Such other functions like fixing the GPRS tracking device was done by outsourced labour to reduce cost.

Competitors

Direct competitors include companies that fit GPRS systems in the cars before releasing them into the market. Such companies do so through a customer’s request. Indirect competitors are those firms that are offering third-party services like fitting security systems after purchase of a car. It is quite difficult to collaborate with a company especially when you do not have enough and available resources. Future competitors include the Chinese companies that have gone hi-tech by building cars that have almost all the facilities one ever dreamt of.

The car recognizer app will face major technology change and will only endure if I keep with the face of technology. Another problem will be the ability to compete with giant firms with huge resources and capital. Modifications to the technology used in the car recognizer app will help in keeping the relevance of the application in the market place and maintaining loyal customers.