Jht2 Task3 Essay

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Decision JHT2 Strategic Management TASK3 A1. Evaluate the industry environment for your company by doing the following: Dominant economic features JoPat Auto Repair service Inc. is a business that specializes in auto repair and maintenance in the Houston Katy area. They offer competitive rates, use original equipment parts, and specialize in both domestic and foreign vehicles. They perform state emission inspections, sell batteries, and install tires. They strictly adhere to factory maintenance schedules. The Retail Automotive Industry is comprised of two kinds of companies: those that sell replacement automotive parts and accessories to "do-it-yourself" customers and to commercial "do-it-for-me" clients; and those that sell a wide assortment of new and used vehicles over the Internet and networks of regional or national franchised dealerships. The most dominant economic feature is Market growth rate. The Auto repair industry is a fast growing industry. There is an increase in the number of vehicles on the road and the average age of a car today is nine and half years. People are choosing to keep their cars for a longer time and therefore spend on the maintenance, to prolong its life span. There is also an increase of the miles driven by drivers today, which emphasizes the need for regular maintenance of the vehicle. The complexity of the vehicles today requires special tools and computerized analysis for repair. It is very expensive to buy a new car therefore people are choosing to buy used cars instead, and therefore need a reliable auto repair shop. A2. Driving Forces Changes in buyer preference Automotive repair industry falls within a stable market despite, a gloom economy. Many people are keeping their cars longer instead of buying new cars. Vehicles are necessity and very few people have the ability to fix their

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