Text: Better Business

Video Title: Subaru America: The External Environment

Length: 6:29

Classroom Application: Instructors will find this video helpful in the discussion of the external environment. Students should gain an understanding of the importance of conducting a thorough industry analysis to determine aspects of the environment that are strategically important to conducting business.

Synopsis

Subaru America is a mainstream automaker offering middle-line priced automobiles. They offer a lot of value for consumers. The company experienced phenomenal success into the 1980s, but had to redesign itself slightly with the introduction of the Subaru Outback to compete in the trendy SUV market.

Discussion Questions

1. How is Subaru using social media to help them remain competitive?

Subaru uses social media to talk about themselves, but also to allow customers to talk about them. Customers expect you to reachable. So Subaru provides content on their Facebook page that customers can access and use to actually help them promote Subaru. According to the video, Subaru uses social media to allow their customers to be their best advocates.

2. Explain how Subaru’s sustainable business practices help make them more competitive.

Subaru has always been a green company. They are just now talking about it a bit more because their competitors are talking about it more. Subaru employs many sustainable business practices such as manufacturing facilities with no landfills, increasing fuel economy, and reducing carbon footprint, etc. Subaru has always done these things but now they are being more vocal about it because customers are demanding companies do the right thing.

3. According to the video, what is the fastest growing segment of the American auto market? In your opinion, what factors are driving this trend?

According to the video, the fastest growing segment of the American auto market segment is the crossover. This vehicle appeals to drivers who want SUV –type features but with the drive and handling of a car.

Although factors explaining this trend are not discussed in the video, students should be able to develop their own opinions for explaining it. This may include demographic shifts such as family size and population aging, fuel prices, active lifestyles, etc.

Quiz

1. According to the video, direct competitors for Subaru America include

a. Honda.

b. Lexus.

c. Mercedes.

d. All of the above

Answer: a

Explanation: According to the video, direct competitors for Subaru America include Honda, Volkswagen, Toyota, Ford, Nissan, and Mazda. They are a mainstream automaker.

2. What is the name of the Subaru crossover vehicle?

a. Subaru Sport.

b. Subaru Outback.

c. Subaru Mountaineer.

d. None of the above.

Answer: b

Explanation: The name of the Subaru crossover vehicle introduced to compete in the SUV market division is the Subaru Outback. It is designed to be an SUV that drives like a car.

3. Which of the following is probably the greatest pressure placed on today’s automakers?

a. To produce cheaper cars.ere is no formal governance structure.

b. To produce smaller cars.

c. To produce more fuel efficient cars.

d. None of the above

Answer: c

Explanation: As the auto industry bears more than its fair share of the blame for global warming and as the price of gas continues to rise worldwide, automakers are facing ever-increasing pressure to produce more fuel efficient automobiles.

4. Subaru’s production was halted for weeks because of what recent catastrophic weather event?

a. Hurricane Katrina

b. Typhoon Earl

c. California fires.

d. Japanese earthquake

Answer: d

Explanation: According to the video, Subaru’s production was halted for weeks due to the recent earthquake in Japan. There was only one part that they no longer had access to that brought production to a complete stop. This caused Subaru to be short on inventory.

5. According to Car Line Manager, David Sullivan, accurate product planning requires knowledge of

a. politics.

b. fashion.

c. engineering.

d. all of the above.

Answer: d

Explanation: According to Car Line Manager, David Sullivan, you must be tuned into all trends in the United States and elsewhere to successfully develop new auto products. He states that you need knowledge of politics, fashion, engineering, and to be well-read.