junior varsity
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so i am taking a marketing cours and am writing an analysis on my fav subject - the ///M5.
so in my SWOT analysis, in the threat section i did not include green issues, economy and regulations. but the prof doesnt understand anything about high performance cars and how the system actually works...
so this is what i am writing back...
does that explain why economy/mpg/regulations arent marketing threats to the m5
so in my SWOT analysis, in the threat section i did not include green issues, economy and regulations. but the prof doesnt understand anything about high performance cars and how the system actually works...
so this is what i am writing back...
Economy, green issues, and regulations are not considered direct threats to the M5, because even though the car manufacturers have to meet miles per gallon, or MPG, CO2 and other environmental regulations, the cars are not regulated individually, but rather each manufacturer is regulated as one unit. Car manufacturers must average x miles per gallon from all of its offerings. To meet these regulations, they make the economy models (models with smaller engines) more efficient, thus creating a buffer for their high-performance models to be competitive. For example, Aston Martin created a high MPG city car called the Cygna to raise the average of their offerings in order to meet the regulations. Ferrari, a subsidiary of FIAT, uses FIAT’s high MPG offerings to cushion its supercars to acceptable levels. Independent car manufacturers, such as Noble from the United Kingdom, sell to the US in “kit car”, or cars sold in LEGO like box of parts that the distributor/user must assemble upon arrival, that do not have to meet regulations.
Car manufacturers are less concerned with high-performance model being green or economical, because it is easier to increase MPG in low performance “econo-boxes” than to get good MPG from a motorsport-spec engine. High-performance cars face such fierce competition in terms of meeting track times and performance numbers, getting a realistic MPG increase becomes irrelevant. For example, the 2008-current BMW M3 actually gets less MPG than the previous generation M3 because of the significant jump in performance. (Going from straight-6 to an industry standard V8)
does that explain why economy/mpg/regulations arent marketing threats to the m5
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