BUS 225 Milestone One
Executive Summary
November 13, 2022
Description of Problem
It is crucial for me to watch and investigate prospective avenues for development and
expansion in my role as sales manager for Engine Solutions, a U.S.-based firm that manufactures
engines for the car manufacturing sector. Generators will be required as the globe changes,
making cleaner fuel sources more accessible and rendering fossil fuels obsolete. Engine
Solutions will be able to reach both the business and residential sectors by manufacturing
generators, thereby increasing earnings. To fully examine whether the proposed diversification
would be lucrative, both qualitative and quantitative data about the present car sector and the
generator business must be gathered.
In this study, both qualitative and quantitative data will be addressed. The date that will
be qualitative Consumer behavior analytics, the customer-salesperson interaction, and case
studies are all featured. With this knowledge, marketing plans and techniques for determining
sales potential may be created. The quantitative information that will be presented includes
competition financial reports, sales by automobile type, production, top corporations, and
information on total sales of things like cars and parts.
Description of the Current U.S. Automotive Industry
The current state of the U.S. automobile industry has substantial implications for how it is
doing and what might be expected for the future. The automobile sector has been declining since
2016, according to IBISWorld, but is predicted to start growing this year and expand marginally,
as indicated in the graph below. The automobile sector is estimated to be worth $68.99 billion in
2020. (Egan, 2020).
California is said to sell the most cars, with Florida and Texas falling in far behind at
second and third, per Policy Advice’s analysis of the 2018 sales statistics. Below are the top 10
states where cars are sold (Kopestinsky, 2021).
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According to NADA, the automobile industry’s market share by fuel type is as follows:
89.3% for gasoline, 3.7% for diesel, 4.4% for hybrids, 1.8% for electric vehicles, and 0.7% for
plug-in hybrids (Manzi, 2021).
Current Automotive Market Trends
By 2040, combustion engines are anticipated to be outsold by electric vehicles, according
to CNN. The graph below illustrates this. Electric vehicle sales will soar as petrol prices rise,
customers grow more environmentally conscious, and electric vehicles become less expensive
and have longer ranges on a single charge (Riley, 2019).
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Description of the New Industry
The American electrical generator market effectively forms a substantial portion of many
other industries, enabling Engine Solution to enter new areas where the automotive sector did not
permit a sizable presence, such as the healthcare and hospitality sectors.
Low, medium, and high power are the three primary categories of the generator market.
Due to many considerations, including the need for emergency backup power and the instability
of grid infrastructure, one of the highest predicted growths is for medium and high-power diesel.
n.d. (United States) The market sector is now valued at $1.2 billion, although growth is
anticipated over the next few years (Gupta, 2018).
Current Market Trends in the New Industry
Although low-powered generators have gained the most traction, the industry as a whole
is expected to develop dramatically, with the commercial and industrial sectors becoming the
major buyers (Diesel Generator, 2020).
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Appendix A
Explanation from PorteràFive Forces Analysis of the New Industry
According to Porter’s Five Forces Analysis, brand loyalty and economies of scale pose
serious obstacles for new competitors in the generator market. Due to these two characteristics, it
is expensive to join the market and challenging to convince buyers to buy your items.
Additionally, the industry is crowded with brands, making it difficult for anyone business to
capture a sizable portion of the market.
Appendix B
Summary of Findings from PorteràFive Forces Analysis Comparing Both Industries
Little has changed in the generator business since the automobile industry’s definitions,
for the most part, apply to the generator industry, according to Porter’s Five Forces Analysis of
the two industries.
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Appendix A
Appendix B
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Works Cited
Diesel Generator Market Size & Share Report, 2030,
https://www.grandviewresearch.com/industry-analysis/diesel-gensets-industry.
Gaikwad, Lokpriya, and Vivek Sunnapwar. õpplier Evaluation and Selection in Automobile
Industry. ntechOpen, IntechOpen, 2 May 2019,
https://www.intechopen.com/chapters/65764.
ndustry Market Research, Reports, and Statistics. BISWorld, 30 Aug. 2022,
https://www.ibisworld.com/united-states/market-research-reports/automobile-engine-partsmanufacturing-industry/.
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ou Are the Sales Department Manager for a U.s.-Based Company That… liffsNotes, 1 Nov.
2020, https://www.cliffsnotes.com/tutors-problems/Business-Other/26986313-You-arethe-sales-department-manager-for-a-US-based-company-that-bui/.
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