Mazda Company Analysis
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Prior to the 1990s, Mazda Motor Corporation operated the subsidiary Mazda of America in the United States During the 1990s, however, a recession coupled by rising development costs, the yen and prices of cars saw MazdaÆs car sales in the United States decline. In 1992 the company sold half of its interests in its Flat Rock, Michigan, plant to Ford (Mazda, 2003, 2). In 1993 the company reorganized Mazda of America and made numerous staff cuts. By 1996, Ford decided to invest nearly a half billion dollars in Mazda, increasing its share in the company to 33% (Mazda, 2003, 2). In 1997 James Miller became President of the newly consolidated Mazda of North America. Mazda of North America has not been as successful as hoped. Mazda announced plans to close about 40% of its North American dealerships in 2000 and sales in the United States have declines approximately 3.9% in 20002, despite an extremely robust year for Mazda Motor Corp. in Japan and Europe (Mazda, 2003, 2). Operating profits also suffered a blow as Mazda of North America posted a 20.9% loss from the previous year with operating profit of 6,457 million yen (Jiji, 2003, 1). Mazda USA offers sedans, minivans, and sports cars and pickup trucks in North America. Goals of the company include its increasing sales, lowering costs, and establishing a ôstructure that can make profits with an annual production of 170,000 vehiclesö (Winds, 1998, 2).
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obody was building them. Our strategy is to attack the market where our competitors are the weakest and where the opportunities are the greatestö (Moskal, 1989, 63).
STP Business
Mazda targets a young, target market in the 18-40 range. The primary target market is young, middle- to upper-class and appreciates value and quality for an affordable price. Mazda has made attempts to branch out into other markets as a means of increasing sales and market share. MazdaÆs new product introductions are aimed at appealing to secondary markets, like its sports cars and its ProtTgT line which it hopes will attract more female consumers. Customers who drive Mazda vehicles typically look for value, quality and performance in an automobile, while demanding a price that is affordable compared to similarly equipped vehicles.
Competitive Strategy
The competitive strategies at Mazda are numerous. The industry is filled with discounts, rebates, cash incentives and other strategies aimed at winning consumers. Mazda takes an aggressive approach to pricing. Its eight-model Mazda 323 lineup is competitively priced and its ProtTgT line sedan and Astina are purposefully price $2000 or more below rival Toyota, Corolla and Honda models. Mazda has a
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Approximate Word count = 1391
Approximate Pages = 6 (250 words per page)
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