US Auto Gap Analysis
USAuto is a pioneer in the auto industry. They currently have the first hybrid engine in the patent process. Unfortunately, high labor costs in the U.S. have hurt them financially. This has caused a problem for USAuto financially. They have realized that they need to turn to other options in order to continue business and survive financially. An option for USAuto, brought on by the CEO, is to turn to other countries to assemble USAuto's automobiles. Their first option was to go to AutoMex, a powerhouse in marketing and manufacturing automobiles, based in Mexico with a proposal for partnership. (University of Phoenix, 2007).
AutoMex is looking to expand their business. They believe that a partnership with USAuto will be beneficial to their business. It will give their laborers an opportunity to educate themselves about the new technology and eventually will allow AutoMex to enter into the auto industry and be able to manufacture their own cars. If USAuto and AutoMex can negotiate a partnership together they will both benefit and reach their ultimate goals.
After going through the scenario several alternatives were formulated. This allows USAuto more options rather than just trying to negotiate with one company. The alternatives are evaluated and the best alternative is discussed. The implementation of this alternative is also reviewed.
Situational Analysis
USAuto was one of the first pioneers of the auto industry. Now USAuto is struggling to maintain a foothold in the industry they helped pioneer. There are many factors in why USAuto is losing its foothold in the auto manufacturing i ...