SWOT Analysis Of AutoEdge: Increasing Prices And Returning To The United States

If AutoEdge decided to increase its prices and return to the United States, how would this action affect consumer demand?

SWOT analysis: Strengths

SWOT analysis is process of learning that is started by an organisation to point out the internal powers and problems along with the opportunities and challenges faced by the organisation. Therefore, the SWOT analysis of the Auto Edge will highlight the strengths and weakness that the company possess while working within the industry of automobiles. The time has arrived to implement a decision whether it is necessary to return the auto parts of production to the United States or sustain producing in South Korea. This information will hence show the necessary evidence for the board for making the most necessary decision.

Auto edge has almost 4 years of experience in the industry of manufacturing of automobile and in the process of transmission. Along with it, they have 3 years of experience of experience in supplying to the top three U.S, automobile company. Moreover, the company is highly skilled in production and manufacturing activities of premium automobile parts for tricks and cars (Pinkse, Bohnsack & Kolk 2014). Therefore, Auto Edge has the capability to change the direction in case they finds that their marketing is not working.

After the suspension of the CEO, Fred McFadden and the failing of the products during the U.S standard tested, the company had to go through a diminishing reputation that is needed to be obtained in different automobile parts within the industry. As a result of this auto edge has stock prices has declined drastically in the last few years. Apart from this increasing cost of employment have created an additional strain on the profits of the company.

Relocating their production operation to the United States will help Auto edge to obtain back control over the quality, by using their own experience and well established managers. This would allow them create additional cost, profits and development as per the U.S standards of industry. In addition to this, the solar and electric cars are increasingly becoming popular in the United States. This will allow them to obtain the higher share in the market by producing new cares running on edible oil.

It is evident that there is an increasing competition from the international automobile production organisation. For instance, China is developing quality and innovative cars at reduced prices. In addition to this, the prices of the fuel too is increasing. Apart from this Auto Edge managed to outsource high cost of employment, stringent regulation of United States (Raslavi?ius et al., 2015). In this context, the company was charged for producing failed automobile parts that declined their reputation.

Conclusion

Therefore, from the study it can be concluded that Auto edge needs to focus on reducing the impact of weakness and threats faced by them while manufacturing in the United States. These issues of quality and charges led to the downfall of reputation and loss of customer despite of 30 years of experience. Therefore, it can be argued that relocating in US would be challenging but moving to South Korea helped them to re gain its control over the products and customer service effectively.

References

Pinkse, J., Bohnsack, R., & Kolk, A. (2014). The role of public and private protection in disruptive innovation: The automotive industry and the emergence of low?emission vehicles. Journal of Product Innovation Management, 31(1), 43-60.

Raslavi?ius, L., Azzopardi, B., Keršys, A., Starevi?ius, M., Bazaras, Ž., & Makaras, R. (2015). Electric vehicles challenges and opportunities: Lithuanian review. Renewable and Sustainable Energy Reviews, 42, 786-800.