MGMT 1030 Lecture Notes - Lecture 2: Toyota Crown, Meritocracy
20 Jul 2016
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Document Summary
Population growth: the american population went from 76 million people at the start of the century to more than triple that (250 million), by the 1990s. This meant that there were much more people in need of transportation. Increase in wealth: the most developed parts of the world (u. s), became some of the richest people. Purchasing power was extremely high, and therefore consumer spending in america was greater than any other country in the world. 1/6th of the population was involved in the production process of automobiles. Market fragmentation: selling low volume of goods for high profit, in very geographically limited markets. Unification: selling a high volume of goods for lower profit margins, in national markets and faster flow of transportation. Products were sold under a brand, therefore brand loyalty and recognition was in effect. Market segmentation: extremely high volume of sales, with maximum profit margins allowed by brand loyalty.
