The Automobile Industry in Europe and Japan. Their competition with the U.S - Term Paper Example

The Automobile Industry in Europe, Japan and their Relation to or the Competition with the U.S. Companies Introduction Currently there has been a stiff competition amongst the automobile manufacturers. The competition arises from the products designs that accompany outstanding innovations. Competition among the firms in the automobile industry is a common phenomenon as the firms are battling for profits and product superiority. The automobile industry is one of the potential industries in the world. In the continents such as Asia, Europe and America, significant innovations in the engines and the automobile parts is evident. This exercise intends to ascertain specific business issues in the automobile industry emanating from Europe, Japan and their relationship with the companies in United States (Christopher, p 145). The research attained the information about the automobile industry through an objective- guided research among the Japanese and the western companies dealing on the automobile products. The study entailed the companies’ development span and the customer’s satisfaction data of the previous and the recent period. The article will focus on the international business law in analyzing the critical aspects of the competitive and the relationship factor in the countries within the regions stated. The consideration of the business law aspects such as the imports and exports, contracts, tariffs and the barriers will be critical in the analysis. The aspects are significant for the evaluation as they indicate the actual status of the financial and the economic progresses in the subject states. The relationships between different companies from dissimilar states incorporate their way of operations. The companies’ manner of carrying out activities depends on various factors including the internal and the external environments. The business environments are critical analysis since they determine the overall business performance. The companies can have international specifications if their policies and strategies possess the qualities shared by other companies in the international scope. The companies in the automobile industry have numerous qualities in common that hold them liable for closer relationships. The imports and the exports will highlight the issues on the countries’ products for which they involve in transactions in the global markets. The imports incorporate all the automobile products such as the spares and the complete machinery that they acquire from other countries. The exports entail the products that a country sells to the other countries. The company may enable its country to participate actively in the international markets to execute that sale of its products. The tariffs incorporate the levy on products or a schedule of products’ prices in a record. The contracts will entail the terms and the requirements for an award of a specific task to a firm. All the aspects discussed above forms a fundamental basis in the international perspective fostering relationships and competition (Shimokwa, p 406). The competition and the comparison of the Japanese and the western automobile industries can achieve relevance with a comprehensive evaluation of the products designs and the customers’ satisfaction. The designs of the products are significant as they determine the companies’ flexibility to achieve the customers’ satisfactions. Throughout the research the analysis of the designs, customers’ satisfactions and the products advertisement will account for fundamental point of essence. The Products Designs The fundamental design procedures begin with a design decision. The design processes hold a crucial magnitude to the companies. The current modernity in the automobile industry operates closely with a notion which stipulates that the customer’s desires can only be prompted by the products outlook. The perception of the products’ outlook is essential since a greater percentage of the customers attain the products attraction before thinking of the acquisition of that product (Henric, Licht & Sofk, p 403). The automobile manufacturers from different countries have creatively come up with numerous distinct designs of the automobile products such as the vehicles and machinery. Every company has opted for distinct designs for considerations in the global markets. Therefore the design procedures should entail an effective vetting and before implementation. The design decision criterion involves the gatherings to decide on the appropriate design, the design analysis, and the time for the design finalization, the overall design check and the final implementation of the design. The gathering in the decision process entails the accumulation of the design proposals from dissimilar designers. The design analysis majors on the merits of the designs and the design weaknesses that can either promote or eliminate individual design. The time for the design completion is equally essential since it determines the product output per duration. The final check can trigger developments and the design modifications. The check stage is complex and accompanies the valuation and the required expertise. Western and the American Automobile Companies The companies situated in the west are the leading in the production of the best automobile products. The firms in Europe and America have analyzed and developed a specialization in the customer satisfaction through their products. The companies’ strategies entail the enhancement of the automobile parts to realize refined outputs. The companies have equally led the world into believing that their products offer the most comfortable facilities. According to NRC, the American and the European automobile companies have attained the best rank of because of their innovations but due to their strategies. The logic in this statement bases on the comparison between the Japanese and the countries in the west with regards to time for development. The Japanese companies have the shortest time for developing the auto parts as compared to the European companies (NRC, p 411). One may wonder about western domination in the automobile industry yet they are not Japan Automobile Companies Japan has remained to be superior in the production of the automobiles. The excellence performance of the Japanese companies emanates from the country’s capability of controlling its production activities. The Japanese are also aided by a common perception amongst the world’s populace. The perception states that Japan is the ‘father’ of technology. The statement has continued to rein ion many personalities’ minds leading to ma feeling that products from Japan are the best. Besides the notions, there is a deeper understanding that for the development of such hypothesis there must have been a significant effort put by the country in the beginning. Nonetheless, Japan has not stopped its determination in realizing that it satisfies its clients effectively by producing the best automobile products. Japan has maintained the higher scales in the global hierarchy of technological scope (Snippet, p168). Firstly, there is a stiff competition experienced by the automobile companies in Japan. The automobile firms in all regions in Japan combines to form one unit of an organization called JAMA. The Japan Automobile Manufacturers Association plays a vital role in the automobile industry in Japan. The association comprises of the motorcycle manufacturers, trucks manufacturers and the cars manufacturing companies. JAMA has enabled the companies to join up in to ensuring that they produce substantial products. The association has also enabled the companies to share technological advancements and administrative practices. Competition of the Automobile Firms in Japan and the Outcomes The competition amidst the automobile companies in Japan such as the Mitsubishi and Toyota amongst others has led to significant changes in the technology in the country and the whole world. The technical point of competition is the most common since the companies are technically oriented and grant technical developments first priority. The managerial systems competition concerns the overall companies’ welfare and their financial performance. The company’s management mode determines the company’s state concerning the overall capabilities to control the staff, customers and incline the competition directions in the international markets. Consequences of Competition Competition in the automobile industry in Japan, Europe and United States has led to two main effects in the nature of products and the consumers’ options. The main effects of competition that are worth analyzing include: a) Increased innovations and automobile products varieties Automobile industry is among the counted industries which have attained a substantial benefit from competition. The competition is essential in the automobile industry since it has fostered splendid innovations. The innovations are critical for the production and the development of the existing products into more efficient outputs for consumption. In the recent past the engine developers from different regions of the world have manifested an exceptional enhancement of the engines. The main engines that have received developments are the diesel and the gasoline engines. The engine enhancements emanate after an effective sensitization amongst the populace by the environmental bodies which advocates for pollution-free environments. Pollution today accounts for one of the aspects considered as a real threat to human life. The engine designers are therefore encouraged to produce the engines that are environmentally friendly. Most automobile customers have also shown a remarkable interest on the vehicles that meet the environmental standards. The key requirement of the engines entails the engines ability to burn the fuel completely and emit the least carbon dioxide gas. The carbon dioxide is one of the toxic gases that can deplete the ozone layer leading to emissions of dangerous rays to the earth such as the ultraviolet and the infrared. The rays are not good for the population health as they can trigger the development of skin cancer amidst the population. The companies have categorized the technical innovations into distinct parts and have resolved to specialize in their areas to attain superiority. The Japanese have opted for the dire research and creativity to realize new products that can satisfy the consumers’ needs completely. The completion for the consumer needs quench is complicated and demands numerous considerations. The automobile products consumers are many and it is logical to perceive that they have different demands and tastes. For instance a greater portion of the population advocates for economical consumption of fuel energy. Nonetheless, there are individuals who prefer fuel guzzling engines. Therefore, there have to be all varieties of products to aid in meeting the customers’ quest (Lakshminarayanan & Nayak, p 311). The European and the American companies have specialized on the modifications and the realization of the most efficient final products. The companies have established the customers’ requirements as being comfort. The western companies have developed their automobile products to cater for all the comfort needs. The vehicles treble and the shock absorbing systems show a greater degree of enhancements. For instance the United States and the German companies postulate a significant determination in the development of effective hydraulic systems in their vehicles. The Mercedes Benz and the BMW are designed to achieve the consumers’ comfort. Thus, many people prefer the American and the German brands. The increased creativity sets for the attraction of more customers to the brand for a given company. The fuel refining companies have received an urge for the production of sulfur and lead free fuels. The fuels with the minimal amounts of toxins have attained popularity and enormous consumptions. The automobile industries closely liaise with the researchers to attain engines that can completely burn the fuels (Sher, p 132). b) Adequate Satisfaction of Consumer’s Needs The satisfaction of consumers needs incorporate the provision of the products as per the individual customer’s specifications. The automobile or the parts have to concur with the clients’ demands. The customers are only convinced that the products from a company are superior only if the product satisfies demands for its purpose. The complete satisfaction of customers’’ needs forms the fundamental actualization point of the individual companies’ targets. Nevertheless, the automobile firms in dissimilar countries do not stop at that point and additionally express their desire to remain at the top in the industry. The competition factor modifies the nature of the firms in the industry to operate in a mode that poses it as the best amongst others. Different companies would express themselves through advertisements and their products brands. The advertisements would prompt different customers to purchase a firm’s products for test. The customers also indulge into adventure of obtaining products on the basis of their advertisements. The customers would prefer a product or many to enhance their satisfaction of needs (Fujito & Yamashita, p 74). Many firms have identified the consumers’ points of concern and have taken advantage in different perspectives. The Japanese involves them into development of different machinery to satisfy all the clients with dissimilar wants. The firms compete in developing new automobiles and their parts to realize their best images amidst the customers. Similarly, the companies in Europe and America have analyzed the same scenario to formulate strategies for curbing the reining of the other companies in the same industry. The European and the American companies have resolved on targeting the new inventions and refining their products to attain success in the industry. Effects of the Automobile Companies to the Economy The competition amidst the firms in the automobile industry has enabled for the development of products which have attracted customers worldwide. The consumers’ attraction on products has translated to fiscal gains in the western countries and Japan at large. The counties have experienced enormous fiscal profits that have helped in developing their economies. The countries are also similar ion the sense that they experience higher revenues through the exports from the automobile industries (Mikio et al, p 703). Conclusion The research established all the hypotheses that have been lurking amidst the automobile consumers in the global fraternity. The research realized that in spite of the expertise manifested by the Japanese developers; Japan is not equally prominent as the automobile manufacturers in the west. The Japanese have remained to show significant degree of creativity in the automobile production and substantial competitive posture. The article joins in support of the fact that the automobile companies share the competition factor and significantly contribute to their individual countries economic growth and the eventual developments. Works Cited Cristopher, M. Restructuring the Global Automotive Industry. London: Oxford, 2008 Design International Conference Vol.1 pp.70-75 Heneric Oliver, Licht Georg, Sofk Wolfgang .Europe's automotive industry on the move: competitiveness in a changing world. New York: Springer, 2009 Kentaro, Nobeoka. The Knowledge of Product Development. Tokyo: Nikkei Bunko, 2002 Lakshminarayanan, P. & Nayak, N.Critical Component Wear in Heavy Duty Engines. New York: John Wiley and Sons, 2003 Noboru Koyama, Yoji Kitani Katsuhiko Kushi: The design needs to considerthe silhouette and regional demand, International Design Congress, 2005 F1-5 Mikio Yamashita, Mikio Fujito: Background and Evolution of In-house Design Organization in Japanese Electric Industry in the later Half of the 20th Century), Journal of the Asia Design National Research Council (NRC). Automotive Fuel Economy: How Far Should We Go? New York: Springer, 1992 Sher E.Handbook of internal combustion engines: pollutant formation and control. New York: Academic Press, 2008 Shimokwa, K. Japan and the Global Automotive Industry. New York: McGaw Hill, 2006 Snippet V. Automotive Industries. Cambridge: Cambridge University Press, 2005 Read More