Current Market Conditions Competitive Analysis

cross Motor association was established in 1903 by Henry Ford (www. history. com, 1996-2013). This company has been a leader in the automobile manufacturing industry for everyplace 100 years. The front or so vehicle ever sold by Ford Motor Co. was the specimen A passenger vehicle. It was a two cylinder, eight horsepower, gas operate vehicle that could political machinery up to four passengers. Five years after (1908) Mr. Ford introduced the Model T passenger vehicle which was intended to be an affordable vehicle for everyone.Since then Ford Motor Co.has been an innovative maven by developing some of the best technology related to throng lines and universal automobile parts. Today, Ford Motor Co. offers 34 different styles of vehicles that atomic number 18 intended for a variety of purposes (www. ford. com, 2013). The manufacturer suggested retail determine for the most basic compact vehicle is just over $13,000. 00 (www. ford. com, 2013). The fleet is do up of cars, sport utility vehicles, pickup trucks, full-sized vans, hybrids, and commercial vehicles (www. ford. com, 2013).Ford also possesses the subject matter to help guests finance a vehicle through their Ford honorable mention Department. Here the customer hatful apply for credit, estimate payments, or flat build a household budget (www. ford. com, 2013). These tools protect both the customer and Ford Motor Co. from defaulting loans and loss of revenue. Factors that fix Supply and Demand The computes that affect the demand for car derriereing room atomic number 18 lower birth rates, recourse, and price. unhorse birth rates affect the demand for car seats because at that place will be less citizenry that need to purchase car seats.Safety elicit affect the demand for car seats because many plurality computer memory for the safest car seat that will protect their child in case of a car accident. The demand for car seats understructure also be affected by price because people sho p for the safest but affordable car seats they can find. One factor that can affect the bestow for car seats is the increase in hail for producing car seats from government regulations. The increase in cost can decrease the amount of car seats that are produced. This can affect the equilibrium price because a decrease in supply and increase in demand can cause the equilibrium price to increase.However, on the other hand if there is a decrease in demand and a decrease in supply, the equilibrium price can decrease. The car seats that will be sold at Ford will be considered to be in a perfectly agonistical market. Our main competitors are Britax, Chicco, and Graco. Our potential customers are those who purchase or testify Ford vehicles. Our car seats are specially designed to arrest Ford vehicles to make it easier and safer for the children of our customers. It saves them time and money because they do non founder to shop around for a car seat that best fits their vehicle.Our sa fety ratings and prices are comparable to other top rated car seats. Long-Term favorableness Being that Ford has in the past only dealt with the manufacturing of only vehicles the business of car seats for children may receive a different stupor on the economy. Companies such as Evenflo, Graco, Chicco, and others are the names that people are used to hearing when it comes to car seats for their children. Knowing that Ford does have a good reputation in the United States with giving consumers the whim of safety developing a car seat that fits comfortably in the vehicles can only help this.At the start up of producing car seats by Ford there will be some challenges on deciding the details because they will be competing with some large brands that people have learned to respect. Parents only have the concern for safety of their children and if they live that Ford can give this to them they may opt for purchasing not only a safe vehicle, but a car seat that has been developed to f it in the vehicle better. In the long-term profitability with technological change Ford will have an edge over their competitors and the cost will only be marginal.