Final answer:
Howl Motors must analyze global competition and market trends to set pricing strategies for sports cars and SUVs. They should evaluate profitability based on demand, production costs, and preferences. Resources should be allocated based on market demand, profitability, and maintaining vehicle reliability and reputation.
Step-by-step explanation:
Analyzing Market Trends and Pricing Strategies
When examining the market trends for sports cars and SUVs, Howl Motors should consider global competition which has dramatically changed the dynamics in the automobile industry. In the past, dominant U.S. companies like General Motors, Ford, and Chrysler faced limited competition. However, with the advent of globalization, competition from companies like Toyota, Honda, and Volkswagen has driven innovation and improved quality in the industry.
Profitability of Sports Cars vs. SUVs
To evaluate profitability, Howl Motors will need to assess the market demand for sports cars and SUVs, including factors like production costs and profit margins. Additional considerations include customer preferences and global market trends, which can influence the types of vehicles consumers are interested in purchasing.
Allocating Internal Resources
Resource allocation should be based on market demand and profitability analyses. It's important for Howl Motors to focus resources on the most profitable product lines while maintaining the flexibility to adapt to market changes. Resource allocation should also take into account the long-term reliability and reputation, as these can affect sales and customer loyalty.