Sunday, November 13, 2011

SEMA 2011

11:32 PM  Dan  No comments

SEMA (the Specialty Equipment Market Association) held its annual SEMA Show in Las Vegas from November 1st through 4th this year. (1)

In recent posts, we've talked about entrepreneurship in the auto industry and some of the difficulties faced by entrepreneurs trying to enter the market. Effective marketing can be a difficult task for an entrepreneur in any industry, but especially one dominated by several well known brands. One traditional method to spread the word about a new product or business is to buy space at a trade show. SEMA Show is an annual show that features small specialty car makers, parts makers, custom tuning shops, and other companies focussed on highly specialized cars rather than equipment for the mass market. Unlike most auto industry trade shows which focus on major corporations, small companies and individuals present their products with GM or Toyota. (2)


Phoenix-based Local Motors has created buzz at SEMA events since the 2008 show. (3) Local Motors is company with a unique product called the Rally Fighter that fits a very specific need: A purpose built vehicle for the Baja 1000 race and similar events. (4) It also has a very unique value proposition: The vehicle is designed and built by a method called crowd-sourcing, which means potential customers from around the world contributed which components should be used and selected a design from several entries during a design contest. The company also sells their build experience: included in the price of the vehicle, the owner builds the vehicle and learns how to drive it (5).


While major companies tend to make major announcements at more mainstream shows like the upcoming Tokyo Auto Show, small companies like Local Motors are able to connect directly to those interested in their product by going to targeted shows like SEMA.


(1) http://www.autoblog.com/sema/
(2) http://www.autoblog.com/2011/11/02/chevrolet-camaro-concepts-storm-the-general-motors-booth/
(3) http://blog.local-motors.com/2008/11/reflections-on-sema.html
(4) http://jalopnik.com/5398864/local-motors-rally-fighter-the-first+ever-creative-commons-car
(5) http://www.rallyfighter.com/buy-a-rally-fighter
(image) https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiaX6PCoRWtsV_-sbvVSoBHDE4q6ObJ7eVU9kEFXZihnMoFKy9Tx3WZ9ma2NoTDNpGKGksSitOjS-rWQASVFXrvMDRqS6C4sHmGdL8L_7GcfpkPJ_PgFXKA9j9bhmSFo9LQqk4BOuB8-5yN/s1600/1841.parker.race.still.jpg

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Thursday, November 10, 2011

Influential leaders of Toyota

8:41 PM  Monika Smidova  1 comment

Toyota is known for keeping the family tradition when changing an important post in the company. Since 1937, when the company was founded by Kiichiro Toyoda, we see that the main positions in the company has been passed down from generation to generation.

I would like to mention the name of Shoichiro Toyoda, who was President (1982-1992) and also Chairman of TMC (1992-1999). Many people consider him a genuinely global manager, mainly because he approved and furthered the expansion of Toyota's production system into the United States, and he approved the development of the Lexus and the Prius hybrid (1). After these merits, when he opened the door for Toyota all over the world, he was considered Japan's leading voice on international cooperation and globalization in the early 2000s (1). 

Now we can notice an interesting case dealing with the 2009–2011 Toyota vehicle recalls.
Safety defects occured in the company's car and have been linked to the deaths of 39 Americans. Also, several vehicles experienced unintended acceleration. Currently, the President and CEO of Toyota Motor Corporation, Akio Toyoda, expressed his apology for the deaths of people and proclaimed that he, more than anyone, wish for their customers' cars to be safe. On the other hand he also mentioned: "I myself, as well as Toyota, am not perfect" (2). We'll see how the negotiations turn out in the U.S. Congress.



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Tuesday, November 1, 2011

Entrepreneurs in auto service industry

6:21 PM  Monika Smidova  1 comment

In recent posts, we were mainly devoted to automobile companies, their profits, supply and demand, international attitudes, promotion and popularity of the brand, etc. However, it is important to mention that it is not just about to selling or buying cars, it´s also about how to keep it in shape . I found some interesting stories of entrepreneurs who started their small business in the last century and who are progressing in its development so far.

One of these companies is Ziebart International Corporation that is the worldwide leader in vehicle appearance and protection services (1).The company was found in 1954 by Kurt Ziebart, a German mechanic, who developed a process to stop corrosion and opened the first Ziebart store in Detroit (2). The company began franchising in 1963 and has grown to a network of approximately 400 locations in 30 countries (1). The main reason of their success is probably the fact that they focuse on three main sources of profit: professional detailing, window tint and protection.

 

Another successful entrepreneurship we can see in the founding of Big O Tires. A franchise is now based in Englewood, Colo and was established in 1962 by a group of independent tire dealers. "Each Big O center offers a variety of auto repair services, including brake, alignment and front-end repair, as well as tire and ride control products" (3). Like earlier mentioned company, Big O Tires has grown into one of America's largest retail tire franchisors, which is based in 21 states (4).

To become a  prosperous founder of a company, an entrepreneur must show discipline and calmness when the business fails. He must also be prepared for the tolerance of risks and show great attention to details. As an entrepreneur doesn´t have a boss to keep him at work when necessary, he must find his own balance (5).

Sources

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