Case # 10-2 The Smart Car
June 16, 2012
Competitive advantage exists when there is a match between a firm’s distinctive competencies and the factors critical for success within its industry (Keegan & Green, 2011). There are two basic ways to achieve competitive advantage. First, a firm can pursue a low-cost strategy that enables it to offer products at lower prices than competitors. Next, an advantage can be gained by a strategy of differentiating products so that customers perceive unique benefits, often accompanied by a premium price (Keegan & Green, 2011).
In the case of the smart car, it seems as though the type of competitive advantage that Smart sought to attain was two-fold aiming …show more content…
Industrial growth patterns generally reveal consumption patterns. Also, production patterns are helpful in assessing market opportunities [ (Keegan & Green, 2011) ]. Additionally, trends in manufacturing production indicate potential markets for companies that supply manufacturing inputs [ (Keegan & Green, 2011) ]. As secondary data can be quite costly, to examine the Market potential in the U.S. for the Smart Car, I will attempt to determine the market potential based upon the information found via the internet. The second generation Smart Fortwo, was redesigned with the U.S. market in mind [ (Schefter, 2008) ]. The changes included ensuring the new car met emissions regulations in all 50