Compact car

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Management des Systèmes d’Information.
IT-G402 Fabrice Buzon
Compact Car
_ “Size Matters !” _ {draw:frame}
An in-depth examination of the Compact Car Inc project.
David Carroll
Introduction. (targets and assumptions) Business Model. Business Plan. Process Overview. Project (inc. costs)Solutions (inc. tools) Projected Results. Appendix A. Appendix B. Bibliography. Introduction
The combined population of Ireland and the UK is over 65 million. England is one of the most densely populated countries in the world with 383 people per square kilometre. The biggest urban conurbation is Greater London with a total population of over 8.5 million. As Iwill later explain, our product is a very small environmentally friendly car which is easy to park. This is why we will concentrate on the city-dwellers, to achieve maximum profits.
These countries are also very rich with considerably high GDP/capita ratios and a high disposable income. This is quite an important factor in identifying a target market in the automotive industry. In fact the UK hasthe 5th largest economy on the world (nominal GDP). Ireland is 2nd only to Luxembourg in average income in the EU. The figures from the automotive industry are similarly striking.
In 2006 the UK automotive manufacturing sector turnover was £48.5 billion.(Sterling)
The car :people ratio is very high
It’s also important to note that the public transport in these countries isrelatively poor compared to other European, American and Asian cities. Although the car culture is strong, carpooling doesn’t really exist. In rush hour traffic it is estimated that 90% of cars are carrying just one person. Again this highlights the need for mass production of a small affordable car. The small size of the car has 4 main benefits for the consumer;
If there is only 1 persontravelling, you don’t need a big car.
The car is much easier to park and can fit into tiny spaces. In fact the smart car was initially designed to facilitate nose-to-kerb parking.
A smaller car weighs less thus consuming less fuel, saving more money in the long-term.
Road taxes in both Ireland and the UK are considerably lower for small, eco-friendly cars.
Thesize will also save manufacturing costs as I will later explain in the processes section.
This type of car won’t really be used off road or long motorways. It’s built for the city and nearby suburban areas. This is fine as it includes the majority of the population and the geographical density of potential customers should decrease marketing costs. As Compact has had no previous experience in thistype of industry it’s clear that we must find a local partner with the relevant experience and resources to proceed with the project. Our choice of partner is examined in the Tools/ Solutions section.
The Business Model
We have chosen to form an alliance with Vauxhall, a subsidiary of GM, who has the necessary experience and resources to mass produce a low-cost car. The main plant islocated in Ellesmere Port in England. This plant produces approximately 180,000 units a year which we expect to increase when our production begins. Since 2002 the Ellesmere Port plant has had an increase of 76% in product quality and an increase of 13% in productivity. These figures are very significant regarding our business model and future plans. We want to produce a high-quality car at a low cost,thus providing an affordable yet quality car for the consumer. Value creation is also gained through the alliance with an ever-improving partner.
We also plan to form and an alliance with ITM based in Sheffield UK. They have recently developed a new low-cost electrolyser which converts renewable energy into hydrogen. Using their prototype generator this hydrogen can then be used to fuel a...
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