The Car Market Revolution

Question: Explain theThe car market revolution in the western countries. Answer: Henry Ford had made a revolution in the personal car industry through his affordable car for everyone slogan. Since then there has been a proliferation of vehicles especially personal cars over the last few decades. This has driven the need for increased security systems for vehicles. Some of the key pointers regarding the industry would be that the total value for vehicle safety market is pegged at USD 7.57 billion in 2016 and is expected to grow at a CAGR of 7.2% which would enlarge it to an enormous USD 10.75 billion industry by 2021. The product types that are popular in the market include alarm, immobilizer, remote keyless entry, passive keyless entry, and central locking system. While technology has driven this market for long some of the widely sold technology enabled products include global positioning system, global system for mobile communication, face detection system, and real-time location system. The astronomical increase in vehicles at the New Zealand region is expecte d to make it the largest in the world followed by the North American market. OVERVIEW OF THE INDUSTRY: The car market has saturated in the western countries while it is growing by leaps and bounds in the New Zealand region. This trend is expected to continue which will drive the car security market in the region. Hence, most of the international and local players are eyeing to tap into this market. Another point to be noted is the use of technology as a disruptive force in this industry. Security systems in all spheres have become highly automated leading to the increased need of innovation and creativity to stay relevant in the market. As the demography of the region is also inclined towards younger generation there is an increased demand for technology enabled products in the car security industry (Ring, 2015b). BUSINESS PLAN: Product The product is a new state of the art technology product which would enable a security system for cars with the owners fingerprints to open and start. It will be path breaking product in the car security industry since such features have not yet been incorporated in the car security system. The bio-metric detection for security check have been established in institutions but has not yet made its entry into car security systems which gives the product a first mover advantage(Smalko, 2007). Owner The owner is a student of business studies and a budding entrepreneur. The various subjects and opportunities available in the market have urged him to come out with an innovative and useful product which would have appeal to a wide range of customers. Keeping in mind the high growth of the segment in which the owner wants to operate and the value proposition of the product, the venture is expected to be a success. Customer The product will have a wide customer base since all personal car owners would be worried about the safety and security of their property. Most people spend a fortune on their car and therefore would appreciate an innovative product which would protect it from any harm. Moreover car is an inspirational product which is used as a tool to flaunt ones social status. Topping it up with a fingerprint based high-tech security system would add to the inspirational value of the car. All these factors will facilitate the product to grab the attention of potential customers (Ring, 2015a). Challenges The major challenge would be the ubiquitous nature of present products which include centralized locking system. People may feel they are comfortable with the present security system and would not need an up gradation. Moreover, people may start to have doubts about the efficacy of the fingerprint based system with the fear that fingerprint can be copied. These are some of the awareness related issues and challenges that need to be addressed so that the product becomes an instantaneous hit (Smalko, 2007). Business idea The business model would be approach individual customers at first on a scale at a particular region for pilot testing. It is more about making people try the product so it might be given at free of cost. Then with rising popularity steps might be taken to ramp up the business. If the product does not become a hit with retail customers then there is always the option of going for B2B segment in which the company can go for tie-ups with the car makers who would like to install this product to augment the unique value proposition of their car (Ghosh, 2002). Market The demography in the New Zealand region is slowly but steadily inclining towards younger age that are more techs savvy and open to using new technologies. This trend will have a significant impact on the product since it is a technology based products. Some of the competition that the company is going to face both locally and internationally include the key market players operating in car security system like, Alps Electric (Japan), Continental (Germany), Delphi Automotive ( United Kingdom), Mitsubishi Electric (Japan), Bosch (Germany), TRW Automotive (United States of America), HELLA (Germany), Lear Corporation (Michigan), Tokai Rika Co. Ltd. (Japan), and others. Price needs to be predatory since the product has to establish market share in an industry which is still flooded with substitutes, therefore the customers will be price sensitive which needs to be taken care of. Prices need to be comparable or even lower than the normal costs (Czerny, 2013). The promotion for this product has to be innovative since its a new concept and the advertisements will be mostly ABL (Above the line) since it has an inspirational value attached to it. The place for retail customers should be automobile stores which generally keeps such products. Since it is a software based product there are possibilities of doing it without the physical contact with the customer. BUSINESS STRUCTURE: The aim of the business structure would be to keep the company debt free with the promoters own money. As the retail business is more individual driven, focus has to be shifted to B2B segment which provide better opportunities. FINANCIAL FORECAST: The required financial forecast can be understood as follows: GOALS AND ACTION PLANS: The primary goal of the venture to make its test market try-out the new product, in order to achieve that the company needs to compete in price and customer service. As the popularity of the product increases there will be an increased market share. These can be achieved through good and creative marketing campaigns. Price should enable the product to be used as a substitute for present locking system and also must provide ease to its customer especially for old people. But the awareness needs to be created for the success of this brand. CONCLUSION: This report is a detailed business plan which needs to be chalked out before starting any venture. This work critically evaluates every aspect of a new venture ranging from marketing to financial goals. All these factors have been thoroughly discussed in this article to give a comprehensive summary for the future delegations for business in New Zealand. References Czerny, B.J. (2013) System security and system safety engineering: Differences and similarities and a system security engineering process based on the ISO 26262 process framework, SAE International Journal of Passenger Cars - Electronic and Electrical Systems, 6(1), pp. 349359. Doi: 10.4271/2013-01-1419. Ghosh, S. (2002) Safety belts in cars, BMJ, 2(5298), pp. 192192. Doi: 10.1136/bmj.2.5298.192-d. Ring, T. (2015a) Connected cars the next targetfor hackers, Network Security, 2015(11), pp. 1116. Doi: 10.1016/s1353-4858(15)30100-8. Ring, T. (2015b) Connected cars the next targetfor hackers, Network Security, 2015(11), pp. 1116. Doi: 10.1016/s1353-4858(15)30100-8. Smalko, Z. (2007) Relations between safety and security in technical systems, Journal of Korbin, 3(-1). Doi: 10.2478/v10040-008-0005-y.