Yoyo

Yoyo

The Detroit automakers are observing and analyzing the strategy which is implemented by the Japanese producers in long-term period. Meantime, Detroit automakers plan their strategy against the Japanese producers. Detroit automakers try to find flaws or weaknesses in Japanese producers’ strategy throughout the period of time. Detroit automakers do not want to waste their resources on a non-profit business. The resources can be used in later technique which is profitable to the companies. Detroit automakers focus into certain area that is ignored by the Japanese producers and improvise that particular area to outwin the Japanese producers’ car models in terms of production cost, quality and durability. However, the Japanese producers have been pursuing the same technique for years without any profit losses. To counter back the Japanese producers, Detroit automakers have adapted the same technique used by the Japanese producers since the technique is successful and the risk involved is reduced (Sun Zi Bingfa, 2005). Therefore, Detroit automakers reorganizes the whole manufacturing system, for example by reducing production cost, increasing car manufacturing productivity, reducing the number of platforms used for car models and designing new car models.  
Besides, Detroit automakers require considering the possible factors which would harm the companies’ market share. In political issue, the economic downturn causes the government to increase regulations and tighter policies. Most of these regulations are the result of increasing concerns of the environment and safety standards. The money value decreases due to economic recession and thus reducing the spending power of consumers. Therefore, a decrease in demand for high value products such as vehicles can be seen. All banks freeze money lending facilities due to the credit crisis.   Customers will find it hard to get loans to purchase vehicles. The modern society judges people by vehicles that they are driving....