Saturn Case
Five Forces
Rivalry among competition
High
Many Players
Fragmented Market
Threat of New Entrants
Low
Many, Huge Players
High Fixed Costs
Efficency required for production
Labor laws strict
Threat of Substitutes
Moderate
Many alternatives
Rail, buses, taxis, etc.
Bargaining Power of customers
High
Many companies
Many options
But new policy is there to reduce it
Zero bargaining pricing by Saturn
Bargaining Power of Suppliers
Low
Saturn manufacturs mostly internal
Suppliers located nearby and dedicated
Others get supplies from many suppliers
SWOT
Strengths
Good Image and liked by most consumers
66.3 will buy the same
91.8% satisfaction
Caters to younger crowd: 18.5% under 30
Highest satisfaction with quality exhibit 8
Highest satisfaction with selling process exhibit 8
Best + dedicated retail outlets
Lowest List Price in 1993 exhibit 8
Highest Franchise Value rating
Winner of awards
Custom built plant with japenese work ethics
Highest selling small car in 1993 with 11.46%
English: Locomotive Leasing Partners (LLPX) 2808, ...
English: NUMMI plant in Fremont with Mission Peak ...
English: The famous Toyota company doesn't care ab...market share
Joint venture with Toyota in California (Labor issues, quality, cost, management, etc.)
Partnership with union with more decenteralization and employee liberalization
Good brand image
One price policy
Backed by the largest automobile manufacturer GM
Return Policy
Weaknesses
Fall in knowing what customers want exhibit 6
Can put more focus on keeping prices low and raising quality as required by customers exhibit 3
Can focus more on fuel efficency
More in R&D
Limited product line
Opportunities
Import opportunities growing all over the world
Customer like Saturn and is a competitor of imported cars
Threats
Risky positioning with many close competitors (Toyota, honda, Nissan, mazda, mitsubishi) Exhibit 4
NADA dealer survey shows fall in most values Exhibit 5
Easy to copy strategies
Estategia
Customer Baby Boomers, 30-40 years, trends and price focused
Geographic Located in major cities of USA
Niche Small car but good quality segment
Operational Strategy...