How the Automative Industry has changed due to advances in Information Technology

Automative

Technological advances have made multiple changes in our daily life as well as the business world. Automotive is another example that has been significantly affected by IT. The auto industry has remained to be one of the most innovative industries. The auto industry was initially focused upon mass production and Six Sigma has mastered that. Now the auto industry is using technology to focus on price optimization.

So what is price optimization? Price optimization is the most suitable and optimal price for a company’s product or service. In the economic terms. It is a series of equations that helps predict customers reaction to change in prices. The price keeps fluctuating however the ideal solution for the company is to have a high price with an unchanged demand. Although, the reality is much different where the customers would shift to a competitor selling the same product or service at a cheaper price.

So, how does price optimization impact the Auto industry?

Purchasing a car is a big investment. Paying between $20,000 or $21,000 for a vehicle is not that much of an issue however increments of $5000 will require second-guessing and more consideration. Hence it is important for the company to fix a price that covers the production costs and results in a sizeable profit as well.

In today’s world due to technological advancements, certain software is available that will help find an optimal price when all the numerical data and information are fed into its system. The professionals then analyze and choose a price.

Integrating price optimization software offers several benefits. Sometimes the costs of the raw materials vary so much that it gets difficult to fix a price that would produce good profits. The software gives you a tool that almost perfects the pricing process and is very easy to use. The software provides you with immense guidance to make a proper decision. It also gives you insight into the market and your company.

Shreyas Tanna

About Shreyas Tanna

The winner of Mr. Pune 2009 Pageant, Mr. Shreyas Tanna is currently the young, dashing, and dynamic CEO of a market research company called Research N Reports in Pune. Fondly known as RNR, the company specializes in market research as well as industry analysis, and is closely associated with its parent company Absolute Markets Insights (AMI). Mr. Shreyas Tanna began his corporate journey as the Head of Corporate sales & PR at RED Entertainment while pursuing his degree for MMS (Marketing) from the MGM College of Management, Mumbai. After accomplishing the tedious task of balancing his work and education, he further polished his skills in Corporate Sales, Public Relations, Channel Development, Global Client Engagement, Strategic Consulting, and Brand Development by working with HDFC Life and ResearchMoz Global Pvt. Ltd. His dedication towards his work has even won him accolades such as the National Level Performer 2013 – HDFC Life and Mr. ResearchMoz 2015. A disciplined individual with a loving heart, he is often seen taking crisp walks with an engrossed look and a gentle smile within the premises of his company to interact with the various departments. And he will be usually followed by an adorable trail of his beloved trio of Shih Tzu babies proudly known as Gucci, Drake, and Paris. The most enticing thing that you will notice about this content and proud pet parent is his infectious positivity and the firm belief in his eyes, a reflection of his favorite quote, “LIFE IS BEAUTIFUL!”

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