Hybrid Automobile disruptive technology

Essay by rkumar26University, Bachelor's October 2008

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Mid Term assignment; - Prepared by Rajesh Kumar

Hybrid Automobile disruptive technology:

Hybrid automobile create steady demand not explosive and it was threat to existing technology but main steam consumer did not like this technology based on performance and features. There were two major factors, which contribute to decision of consumers, cost effectiveness and performance.

Due to lack of standardization in hybrid technology, there is less number of hybrid manufacturers. It's hard for manufacturers to find parts of vehicles so they have to manufacture within their plants that makes them costly. Due to the cost of producing automobiles, we do not have several hybrid automobile manufacture in market. Both Toyota and Honda together has 85% market share. This makes it difficult to attract high-end consumers.

Based on consumer report, Honda Civic hybrid model gives 36 miles per gallon and market price is around $21,000,but 2003 Honda Civic EX gives 29 miles per gallon and prices is $18,500.

It would take you 21 and 1/2 years in gas savings to pay back the extra money you initially laid out for the hybrid.

Finally, as this technology is improving, their performance, by changing power terrain more frequently makes even less attractive for traditional consumers.

Impact on market: Market penetration is slow at this time until 2010 but in the future market growth will increase by 102% as analysis by Search Company J.D. Power and Associates. Analyst saw most of the research companies reach very similar forecast for future penetration. Because of future penetration, we will get more standardized technology and a greater increase in the number of competitors. Also presently, companies are manufacturing most of the parts from inside their company that increase the cost. Sale profits will increase as more companies start manufacturing parts and also when a company...