Cuban Marketing Analysis Chevrolet

Andrew Griffin

Stephanie Jennings

BML 336

September 6, 2015

S.W.O.T. Analysis

Chevrolet Puerto Rico

The automotive industry is both fascinating and infuriating to consumers worldwide. Every year more than fifteen million new cars and trucks are sold in the United States alone, a market dominated by GM and Ford products. A few different companies dominate Puerto Rico, a highly populated United States territory, however. In Puerto Rico both cost and terrain dictate much of the automotive industry and thus lead to one of the most confusing markets in the world. In Puerto Rico the bare minimum (cost effective) vehicles sell like hotcakes, as well as Jeep products, which contradict the cost effective market. All the confusion and mess of the automotive industry in Puerto Rico grabbed my attention from the beginning, and pulled me in to discover how Chevrolet could compete in such an uncompetitive market.

The first step in understanding the Puerto Rican automotive market is to understand the people. Puerto Rico has a population of nearly 4,000,000 people and the population growth is expected to slow some from 0.8% to 0.5%. According to the United Automobile Importers’ Group or GUIA more than 75% of the population is age 18 and over (legal to drive in Puerto Rico.) The economy of Puerto Rico is very unique in that a strong middle class has developed in post-war years, but a huge chunk of the population (estimated 45% or more) lives below the poverty line. This is a result of nearly 3/5 of the able workforce (ages 16 and older) being out of work, or not working. In Puerto Rico an unbelievably low 34% of the capable population is in the labor force, which translates to every employed person in the private sector supporting five others, which is an extremely high dependency ratio. Understanding the financial situation of the entire country is a key to success for automobile manufacturers and helps to show why inexpensive vehicles sell much better than luxury...