Saturday, February 29, 2020
Analysis of Demand and Supply for Ford SUVs and Trucks
Analysis of Demand and Supply for Ford SUVs and Trucks This paper will discuss the analysis of Demand and Supply for Fordââ¬â¢s SUVs and trucks. Particularly the larger SUVs and Trucks. What is demand and supply analysis? It ââ¬Å"is the study of how buyers and sellers interact to determine transaction prices and quantities.â⬠(Demand and Supply Analysis: Introduction, 2011). It might be hard to believe that the big SUVs and trucks sells are on the rise while all sedans sales are plummeting in ever category. Half a decade ago SUVs and trucks sells were rock bottom but with the current economy, low gas prices, low interest rates, and the average income is on the rise, people are opting for the larger vehicles. Ford is one manufacture that is going to take advantage of the new demand shift. Ford has opted out of making any more sedans and to only to make SUVs and trucks. Ford will keep two sedans which is the Ford Focus and the Ford Mustang their best sellers. Ford plans to introduce new SUVs and Trucks to cover more of the market segments, because not ever consumer can afford Fords top tier line that cost upwards of seventy to eighty thousand dollars. The Analysis of Demand and Supply. Less than five years ago car manufacturers were on a race to improve fuel economy. This was mostly due to the high gas prices. From around 2011 until late 2014 going into 2015 gas prices averaged over $3.50 a gallon and high average just over $4.00 dollars a gallon. The above chart is from (Gas Price Charts, 2018). According to data from the U.S. Department of Transportation, the average American driver puts in 13,474 miles behind the wheel each year. So, if U.S. consumer was to by a large SUV that got a combine average of 18mpg and at $4 dollars a gallon it would have cost the consumer $2,994 dollars. However, if the consumer was to buy a car that got closer to 40mpgs it would have cost the consumer $1,347.4 dollars. This would have saved the consumer on average $137 dollars a month just in gas not to mention that the smaller cars cost less. Gas was a significant factor but there were other factors such as economic confidence was down, the average Americanââ¬â¢s salary was stagnate and even declining. During the time frame 2010 to 2016 consumers were spending less. The economic environment has changed, and the economy has strengthened over the last two years. Gas prices are lower with the current national average of $2.84. At the current gas price and with the larger SUVs and Trucks peaking around 20mpgs it would currently cost the consumer $1,913 dollars in gas, this is a thousand dollars a year savings. Other factors driving consumers spending more on cars are Americans have more economic confidence and American wages are on the rise. According to USA Today ââ¬Å"U.S. workersââ¬â¢ wages and benefits grew 2.6% last year [2017] the fastest 12-month pace since the spring of 2015.â⬠(Wages rise at 2.6% in 2017, 2017). This means that U.S consumers have a little more money in their pocket and they donââ¬â¢t want the same cars any longer and are willing to spend more to get more. Americans have always been drawn towards larger vehicles more than other nations. Therefore, Ford has made the change to focus more on their SUV line and Truck line. Only two cars survived the chopping block. One thing that is evident with the current new demand is the price. In 2013 the Ford Expedition top out at $51,355 dollars in the top trim level of the King Ranch. Now in 2018 Ford has introduced a remodeled Ford Expedition and the top tier base price is $76,175 dollars. These prices were gathered from Autotrader.com. What caused this massive jump in price in just 5 years. To start out the demand was down because of the recent high gas prices. With the environmental factor such as gas price this will reduce the demand for larger vehicle when there is a alternative vehicle that got better gas mileage and cost tremendously less. As the gas went down and the consumer income went up the demand for these SUVs went up, but the supply was low. Fords parent company Lincoln was selling their high-end Lincoln Navigator but Ford was having a hard time keeping up the demand. In January of 2018 Lincoln sold 1,300 Navigators this number was up 97.5% from January in 2017. Not only was Lincolns sales up but of those 1,300 Navigators sold 84% of them were Lincolns two highest trim level which brought a price of over $90,000 dollars. While everyone might not be able to spend upwards of $80,000 to $90,000 dollars Ford is introducing new models that are smaller but look like an SUV. This move is to capitalize on the current trend that people are moving away form sedans and that the current technology is allowing some of the smaller crossover SUVs to get upwards of the 30mpg range. The ability to get 30mpgs in a SUV will help Ford survive if the gas price was to go up or if the economy was to take a down turn. In the end if the economy is right the U.S. consumer will spend more on their vehicle but if gas goes up and the economy tanks we could see prices fall for the large SUVs and Trucks.
Thursday, February 13, 2020
Chapter 7 Essay Example | Topics and Well Written Essays - 500 words - 4
Chapter 7 - Essay Example 960s, advertising has gone through several changes and due to these changes, the current advertising techniques have gained much more persuasive strength. Creative revolution from 1960s has made advertising to become much more effective than it was traditionally. Due to creativity revolution, advertisement today is able to confer a strong beneficial effect on prices of brands. Creativity revolution is believed to be the soul of branding and advertising. It is what gave life to todayââ¬â¢s advertising messages about services and products (Samuel, 2012). Without creative revolution in advertising, todayââ¬â¢s advertising would be insignificant or boring in the minds or hearts of the target consumers. For instance, most advertisers often seek advice from advertising agencies for development and designing of ads that will enable them attract a large population of customers. Creative revolution in advertising has resulted to what is mainly referred to as digital advertising. The creative revolution has replace many conventions in the advertising sector bringing more creativity and inspiration to advertising messages. Due to creative revolution advertisement is very important in todayââ¬â¢s world based on the benefits it brings to business organizations due to their effectiveness. For instance, magazines and newspapers are used in todayââ¬â¢s advertising to address a certain group of customers. The type of products and services advertised in this platforms are very attractive to grasp the readerââ¬â¢s attention. Apart from magazine and newspapers, advertisement is currently done via radios and television to persuade a large group of consumers (Sanje & Senol, 2012). The current advertisement methods have deeper impact on the minds of the consumers compared to the traditional ones. Creativity has also resulted to business men using celebrities to be pictured in their advertisements so that many consumers will consider them as fashion trends. Revolution in advertising has
Saturday, February 1, 2020
The reasons to be a social worker Essay Example | Topics and Well Written Essays - 500 words
The reasons to be a social worker - Essay Example The researcher will begin with the statement that from his childhood he enjoy socializing, making new friends, meeting people and helping them in different ways. The author has been very compassionate about the financially poor people and always wanted to do something for them. It was his dream from his childhood to get into the stream of social work. At this point, the author cannot forget to acknowledge his mother who was basically responsible for developing these feelings for him. The researcherââ¬â¢s mother has been his inspiration and the author hardly knows anyone who is as compassionate and loving as her. She runs an old age home and also an orphanage for children. The researcherââ¬â¢s mother used to take him along with her during the weekends and also in his vacations and that is when the researcher developed the interest in social work. Recently, after the major Tsunami, there were many who lost their houses, parents who lost their children and children who lost their parents. The researcher was really moved by a five-year-old who happened to reach his mother's orphanage after the incidence. The author was really sorry for the child who lost all his family members and was all alone in this world. The researcher feels that his education and his future should be focused in this direction and take social work as his profession. The author believes that his educational background and abilities would be an excellent base for his future studies in social work
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