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Auto Woes
Bring Chance
for Change -
The current
automotive
business
model, which
evolved out of
the post-World
War II boom in
consumption,
is outmoded,
according to
analysts at
consulting firm
Bain &
Company.
However, the
financial crises
at the Detroit
Three
automakers
could offer the
opportunity to
adjust the US
automotive
business to
modern
conditions. A
shift to a
manufacturing
strategy that
builds no car
without a sales
order could
simplify
production and
lower costs.
Dealer
geographic
footprints and
costs would be
reduced as
there would be
no need to
carry large
inventories.
Customers
could
configure and
order cars
online and pick
them up a
week or so
later.
Gas Prices to
Remain
Stable - Prices
for gasoline, a
factor many
consumers
take into
consideration
before buying
a car, are
expected to
remain flat for
the remainder
of 2009,
according to
US
government
forecasts.
Energy prices
overall
increased in
May 2009, a
indication that
certain
portions of the
economy may
be rebounding
from the
recession.
West Texas
Intermediate
crude oil prices
are expected
to remain
about $55 per
barrel for the
remainder of
2009; average
prices for 2010
are predicted
to be slightly
higher at $58.
Auto Woes
Bring Chance
for Change -
The current
automotive
business
model, which
evolved out of
the post-World
War II boom in
consumption,
is outmoded,
according to
analysts at
consulting firm
Bain &
Company.
However, the
financial crises
at the Detroit
Three
automakers
could offer the
opportunity to
adjust the US
automotive
business to
modern
conditions. A
shift to a
manufacturing
strategy that
builds no car
without a sales
order could
simplify
production and
lower costs.
Dealer
geographic
footprints and
costs would be
reduced as
there would be
no need to
carry large
inventories.
Customers
could
configure and
order cars
online and pick
them up a
week or so
later.
Gas Prices to
Remain
Stable - Prices
for gasoline, a
factor many
consumers
take into
consideration
before buying
a car, are
expected to
remain flat for
the remainder
of 2009,
according to
US
government
forecasts.
Energy prices
overall
increased in
May 2009, a
indication that
certain
portions of the
economy may
be rebounding
from the
recession.
West Texas
Intermediate
crude oil prices
are expected
to remain
about $55 per
barrel for the
remainder of
2009; average
prices for 2010
are predicted
to be slightly
higher at $58.
Netbooks
Take the
Spotlight - In
a shrinking PC
market,
netbooks are
proving
remarkably
resilient. Sales
of the
stripped-down
portable PCs
have exploded
since their
introduction in
2007 and are
forecast to
double to 21
million units in
2009. Prices as
low as $350
have made
netbooks the
fastest-
growing PC
category. Acer,
Asustek, Dell,
Hewlett-
Packard, and
Lenovo are
among the
larger netbook
players in the
US, according
to
InformationWe
ek.
Server Sales
Plunge - First
quarter 2009
was not kind to
the server
industry, as
sales fell 25
percent from
the year
before and
revenue
dipped below
$10 billion for
the first time in
more than a
decade.
Recessionary
pressures hit
all major
server
suppliers,
including Dell,
Hewlett-
Packard, IBM,
and Sun
Microsystems.
Industry
observers
pointed to a
slowdown in
spending by
corporate and
government
customers as
the main
culprit,
according to
the San Jose
Mercury News.
Vendors are
cautiously
optimistic that
server sales
will brighten in
the second half
of 2009 as
customers
anticipate an
economic
recovery in
2010.
Business Communication 2.0/Winter09/COMPANY DATA MATRIX (page 3/3)
HONDA The major drivers of US demand for autos are employment and interest rates. The
profitability of individual companies depends on manufacturing efficiency, product quality,
and effective marketing. Large companies manufacture multiple product lines, marketed
under different brand names. Smaller companies manufacture a few or single product lines.
Large companies have advantages of economy of scale; smaller companies compete by
focusing on specialized markets. Due to highly automated manufacturing processes, the
average annual revenue per employee is about $1.4 million.
TOYOTA The major drivers of US demand for autos are employment and interest rates. The
profitability of individual companies depends on manufacturing efficiency, product quality,
and effective marketing. Large companies manufacture multiple product lines, marketed
under different brand names. Smaller companies manufacture a few or single product lines.
Large companies have advantages of economy of scale; smaller companies compete by
focusing on specialized markets. Due to highly automated manufacturing processes, the
average annual revenue per employee is about $1.4 million.
CANNON Demand is tied to consumer and business income. The profitability of individual computer
companies depends on purchasing and production efficiencies, and on technological
expertise. Large companies have economies of scale in purchasing and production. Small
companies can compete successfully by specializing in certain products or by developing
superior technology. The industry is capital-intensive: annual revenue per employee is about
$400,000