Petroleum price fluctuates due to multitude factors of short term which could be movements in exchange rates, financial markets, weather and long term factors of concerning expectations of future demand production decision by OPEC. A chronological movement of crude petroleum prices indicates a pointed augment over the past decade and as well as there is an immense consumption over petroleum.
The U.S. Energy information Administration (EIA), in its international Energy Outlook 2010 ("IEO2010") has forecasted that crude petroleum prices to rise from $82 per barrel in 2010 to $108 per barrel in 2020 and $133 per barrel in 2035 due to continues rise in global demand.
What would energy suppliers believe is that current output from the world's fields are at its peak and they expect the demand to decline but it becomes more and more demanding with opening to the problem of declining supply of petroleum to consumers. Even though liquid petroleum cannot make the appropriate supply due to the amplified demand it is the major resource of energy predominantly transports industry in whole world. The supply will decline in near future since there has not been introduced or invented viable substitute which can be available easily to the vehicle owners. However with the recent developments and advancement in science and technology Plug-in Hybrid Electric vehicles (PHEV) developments and its progression can give a high elucidation on supply and to the current grievances. Therefore, coming up with Hybrid technology which could benefit customers in various ways such as fuel cost savings, flexibility would be a solution for the intensifying petroleum prices and more often than not to the depletion of resources.
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Increased concern in environmental issues
Exploration of petroleum production across world in different continents acknowledge by incurring different environmental harms such as major detrimental impact on soils, surface and ground water, local ecosystem in world, high carbon dioxide (CO2) and nitrogen oxide (NO2) emission which will ultimately result on global warming and climate change. Therefore, using petroleum could be one of the majority ubiquitous sources of environmental dilapidation in the industrialized world. The fact that petroleum fueled transportation is the foremost contributor to the carbon dioxide emission level the prologue of Hybrid vehicles would promote from the environmental revolutionizes. Thus, this will also fulfill the goal of reduction to increased oil consumption and reduction of carbon dioxide.
Complying with legal statues imposed by government globally
Current Hybrid technology and its development
Introduction of Hybrid technology to the world is one of the resolutions for the issue of depletion of resources and increasing oil prices in the world. The technology gives the meaning of giving power by two motives of internal combustion engine and electric motor. Additionally it is also argued that with the enhancement of science and technology there will be more variants such as Hydrogen fuel cell and may be more straight electric vehicles thus having three main varieties at the moment named Series, Parallel and Series Parallel. Adaptation of this technology would result in long term of reduction of CO2 emissions to the atmosphere and other air pollution happening through petroleum.
Batteries used in Hybrid Electric vehicles would be the key determinants and they would include the environmentally effective lithium similar to the technology used in laptops etc. it is also predicted that the price of the battery will decline when the technology gets familiar and due to economies of scale because the technology used in Hybrid Electric vehicles has used in different purposes and different contexts.
Advancements in Hybrid developments
Promotion of new technology of Plug-in Hybrid Electric vehicles (PHEV) could be one of the outstanding developments of Hybrid technology. Set of rules, regulations related to this new fuel efficient technology would generate an enormous reverberation in the automobile industry. The manufacturers long term viability is to implement and formulate new strategies and planning on enhancing the purchasing number by consumers which is already has been increased in most of the countries in the world.
Needs to write more development technology they would use in future and currently they are doing.
Almost all the governments across world would promote the use if Hybrid vehicles due to the benefits it gives due to many issues such as booming oil price, increasing global warming and climate change and diminution of resources which are currently facing by many countries in the world.
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How different countries (UK, US, Europe, India, Sri Lanka has supported promotion Hybrids)
Reaction by other companies
Companies around the world have started to invest more on this new technology since the number of favorable benefits it gives.
Strategic Market responses from automobile/Hybrid manufacturers
The fact that every manufacturer, retailer and wholesaler needs to face the challenges due to economic factor changes its necessary to combine a strategic market planning process to their business in order to grow within the market. Most of the time this plan includes the areas of product, market, sales and customer development strategies which can understand the important factors to the customers. Systematic approach of strategic market response by Hybrid vehicle manufacturers would enable to make comprehensive reviews of market opportunities and threats, utilizing the company resources, long term strategic decisions, achieving sustainable competitive advantage which will then ultimately enable them to achieve their strategic marketing objectives and goals.
Increased demand for Hybrid vehicles steadily increases which owing to appeal with cost conscious and the environmentally friendly and with the facing of exceeds demand and declining supply. The dominance of implementing and responding to marketing strategies would enable to the dominance of Hybrid vehicle industry. Market leaders, challengers and followers need to proactively act to the strategic responses which offer an opportunity to create a reputation for them in the up-and-coming market.
To make a core competitive advantage among automobile manufacturers its essential to adapt cost leadership strategy where they need to utilize their resources and reduce the their cost thus, mass production will enable Hybrid manufacturers to further reduce the cost. Diversification of this automobile into Hybrid technology needs to remain as market leaders by adapting to new marketing strategies and improving on the value chains of the industry which would then actively possess on best cost provider attribute by the Hybrid vehicle manufacturers.
Horizontal or vertical integration
Increasing shareholder wealth by manufacturers, the concentration of current marketing four Ps and the extended marketing mix (7 Ps) by introducing Hybrid technology and other benefits of using the vehicles by consumers and synergy of manufacturers would be revised in order for a harmonization of new marketing and business plans.
Unlike past, automobile customer contain high bargaining power since there is a high degree of availability in terms of Hybrid models and the efficient in public transport sector in most of the continents in world. Thus, the reason that Hybrid Vehicles still in the introduction stage of product life cycle and they need to give more concern on innovators which has the 3.5% and then with the promotion of different tactics and aiming to cover up the early adapters stage when it reaches to the growth stage by emphasizing on evolutionary aspects of the Hybrid technology and the giving the high contribution of moving away from using petroleum.
Novel function for Hybrid vehicle marketers
For instance, still this technology is in the introductory stage its essential to get the price cuts, fall off the production costs of vehicles and increase profits by enhancing the sales.