Business Analysis Case

Individual: Business Analysis Part III

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Individual: Business Analysis Part III

Over the past three years the world has changed in the automobile industry. Items such as on-board navigation, Bluetooth connection, iPod/iphone sync and connectors are becoming standard in newer vehicles. Along with these electronic devices inside of the car there has been a huge push by the general public for more fuel efficient vehicles. This has led to a large demand for AGM and Lithium Ion batteries. The way the market is looking going forward the demand for smart phone compatibility in cars is going to be a staple also. What a person is able to do with their phone inside of their car, the sky is the limit. In order to meet the demand for power supply and the ability to increase mpg automobile companies are looking to Johnson Controls for battery solutions.

Economic Trends

Gas prices continue to rise with no sign of slowing down. People are trading in their Hummers, Jeeps, large SUV's for cars that will go 30-40 miles per gallon. It is no longer feasible to drive around in a car that will only allow 16 miles per gallon. Larger SUV's and trucks are marketed by having best in class miles per gallon. Companies like Ford, GM, and Chevy are looking for ways improve on miles per gallon and also be able to provide technological demand on the interior. Ford has announced that later this year they will release vehicles with start-stop technology. When the 2013 Ford Fusion launches later this year, it will be the first mid-size family sedan in North America to feature start-stop technology, which kills the engine when the car is not in motion (Digital Trends, 2012). Every time the car is stopped, the car will shut down and the battery will kick on. Once the gas pedal is pressed the engine will kick on and power the car. This will save fuel when constantly starting and stopping in towns or city areas. Ford is planning to offer this package as an add-on for $300. They are claiming savings of over $1,100 over a five-year span. To power a vehicle such as this there needs to be a special kind of battery that has the capacity to power a car's engine every time it stops and be able to run all of the electrical hookups inside the vehicle. A normal flooded battery would not have the cyclic durability to power a vehicle with this much output demand on the battery. With this Johnson Controls and their AGM battery technology come into play. Their AGM battery has significantly increased lifespan, higher energy throughput, three times the cyclic durability of conventional technology batteries, superior starting even at lower temperatures. The battery does not age the same way flooded batteries do, spill and leak proof, has zero water