Will the Mexican car company, Mastretta, ever reach the reputation Essay

Will the Mexican car company, Mastretta, ever reach the reputation that the current top car companies receive - Essay Example The report is due by the end of this month. 2.0 Procedure Comprehensive secondary research has been carried out to explore the issue and find relevant solutions for the same. The resources that have been mainly consulted are consumer brand awareness reports of the automobile industry and also reports pertaining to the automobile industry of Mexican automobile industry. 3.0 Findings 3.1 Industry Outlook Similar to the discovery of airplanes, the materialization of automobiles has a profound impact on the everyday life of human beings. The automobile industry is critical constituent in the fabric of global economy (Kazmi 6). The global automobile industry enormously contributes to the wealth and health of millions of inhabitants of the world. Hence, it is important that the automotive sector retain its innovative edge and competitiveness. It has been found that the auto manufacturing industry is highly labour intensive and capital. Some of the major costs associated with manufacturing and marketing of the automobile products are labour cost, cost of procuring raw materials and cost associated with advertisement and distribution. A large proportion of the industry is driven by revenues generated from selling of automobiles. However, the equipments and parts market also offer lucrative opportunities to the players. In the North American market, the industry is principally dominated by three major players namely Ford Motor Co., General Motors and Chrysler. In addition, the foreign players such as Honda Motor Co and Toyota Motor Co are other major players (General Motors, â€Å"Annual Report: Financial Highlights†) According to several industry analysts, the automobile industry depends heavily on the tastes and trends of consumers (Adair 6-10). Although, a large segment of the overall sales of automobiles generates from the business to business selling and car renting companies, but the end consumer always has the highest priority as they are the one who drive the growth and progression of the industry (Bhushan and Rai 12-18). Another vital caveat for analyzing an automobile company is the intentions of the company pertaining to their planning and redesign. In this rapidly changing business environment companies, irrespective of the nature and business line are continuously trying to bring changes into their system of operation and product design. As a result of that, it is noticed that every year companies come up with either a new car or modify their existing car. These changes have massive impact on the success or failure of a company as consumers are directly influenced by it. In addition, there are certain other factors such as the price; the variation of models as well as the status it reflects in the social world is also a major factor (Hicks 14-21). Therefore, the discussion makes it evident that there are several factors responsible for the success of an automobile company as well as for gaining reputation in the market. In the context of the automotive industry of Mexico, it is characterized by steady growth and high potential. The industry accounts for 3.6% of the overall GDP of the country and is growing at a steady pace (Esenaro, â€Å"Luxury Car Manufacturing on A Roll in Mexico†). Despite the economic crisis, where majority of automobile players were seriously affected, and resulted in minimization of various expenditures, have once again occupied the emblematic position in the national economy of the country. As of latest figures the country ranks among the top 10 car manufacturing countries of the world. Figure 1 –