Due to poor marketing and product innovation, Saturn has suffered loss in past. They used poor marketing strategies in the past, which ultimately resulted in its poor status in the automotive industry. Due to lack of sales, Saturn promised they will soon introduce an all-new lineup of vehicles that includes a midsized sport sedan, an eight-passenger crossover vehicle, a two-seat roadster, a new compact, and a hybrid SUV. Having anticipated the brand's new beginning for years, Saturn is now owned by Penske organization to give it a fresh start from the scratch. Saturn put significant resources into Customer research and product development. The first Saturn cars were made from ...view middle of the document...
The operations will be completely computerized, with robots will operate to reduce direct labor costs, and flexible manufacturing techniques and just-in-time inventory system was introduced.
Saturn’s strengths, weaknesses, new growth opportunities, and threats. All of which are discussed as follow:
Strengths: One of their main strengths of Saturn are building cars with good structural strength. It is one of the best-managed, most successful company. Saturn was known for customer service, high quality, and a satisfied workforce, in part due to great training for employees. Other good strengths are their innovation of Sport Utility Vehicles for example Saturn sky roadster which is considered to be one of the most powerful, comfortable and smooth car to drive.
Weaknesses: The increased number of hours in labor cost, due to the process of making new innovative cars required more hours from the employees. The company’s initial goal was overstated which should be 20 hours average on one car, which actually took 35 hours of labor time to make one car. Another weakness of Saturn is that they were criticized by automotive analysts for lacking style and entering the SUV market too late.
Opportunities: New ownership by Penske has created new opportunities for growth in profits and sales. Such as potential target markets in different areas of the economy. Expansion of the product in international market.
Threats: The main competitors for threats for Saturn from are competitors such as Honda, Toyota and Ford etc. The competition with the competitors included the price, quality, comfort and structural strength of the product.
Competitors: Ford Motor Company; Toyota Motor Corporation; DaimlerChrysler AG; Honda Motor Co., Ltd.; Kia Motors Corporation; Mazda Motor Corporation; Nissan Motor Co., Ltd.; Volkswagen AG.
Target Market: There are various potential target markets that Saturn needs to focus on. The target markets include large families, small families, singles and baby boomers. The big families would require SUVs’ which are comfortable, in good price range and have a lot of space for a lot of family members. The small families would be interested in intermediate...