Lead With Innovation
In a world of automaker giants, Mazda has held out as a small, but determined competitor. The company has remained small since its founding in 1920 in Japan. Some might cite this as a disadvantage, but others can also point out that this is a strength. Larger companies possess more resources and capital, but smaller companies are usually capable of more innovation and flexibility. Since almost declaring bankruptcy in the mid 1990s, Mazda has come back with better sales, and a determination to head into the future with innovation.
Last year, Mazda saw a 14% increase in sales globally, amounting to roughly 1.5 million vehicles around the world. While the company still only holds 2% of the global auto market, this news shows that Mazda is definitely on the rise. In North America, other established brands hold much larger shares of the auto market, while Mazda is still seen as an entry-level company by many, despite its unique and innovative vehicles. Some of the stronger features that Mazda wants consumers to realize, is the design, performance, and fuel economy, that make Mazda the unique brand that it is today. As time goes on, Mazda hopes to have gained more loyalty among consumers in the North American Market.
Growth worldwide can hinge on various factors, with currency strength being among them. As Mazda sites around the world look to increase sales, various factors with local currency can be more impactful on the company than others, due to its small size. Mexico and Japan are both great examples of this. The Japanese yen is rising in strength this year, and provides a strong currency with which to buy products worldwide, even when compared to the dollar. The Mexican peso is definitely the polar opposite when it compares to the yen, as it has been declining in value recently, and making it harder for Mazda to purchase what it needs in Mexico. Such fluctuations in currency have been normal for thousands of years, and will continue to be so.
A growing concern among many auto companies is the approaching deadline of government regulations to have more energy efficient and electric vehicles available for consumers. This has been a major change for the industry, as companies have tried to meet this deadline with new technology and greener models, and Mazda is no exception. Adjusting to change is what Mazda has done in the past, and will continue to do in the future, with big plans to adjust the company’s lineup of vehicles.
The challenges of the future are no deterrent to Mazda, and its spirit of innovation. While small, and lacking the resources of larger companies, there is still so much opportunity for growth in local and the global market for an independent company like Mazda.