Changes in Characteristics from Short to Long Run for an Automobile Manufacturing Company:
1. Technology and Innovation:
- In the short run, automobile companies may focus on immediate production needs with existing technology. However, in the long run, they may invest in research and development to improve technology and innovate new products to stay competitive.
2. Economies of Scale:
- Short-run production may limit the company's ability to benefit from economies of scale. Moving to the long run allows the company to expand production, reduce average costs, and increase efficiency.
3. Market Penetration:
- Over time, an automobile company may penetrate new markets or expand its customer base in the long run. This could involve developing new distribution channels or targeting different customer segments.
4. Product Diversification:
- While short-run production may focus on a few core products, the long run allows for diversification into new product lines or variations to meet changing consumer demands.
5. Supply Chain Management:
- As an automobile company moves from short to long run, they may need to reevaluate and optimize their supply chain to support increased production capacity and meet growing demand efficiently.
6. Brand Building:
- Long-run strategies often involve investing in brand building and marketing efforts to establish a strong brand presence in the market, attract loyal customers, and differentiate from competitors.
7. Sustainability and CSR:
- With a long-term perspective, automobile companies may prioritize sustainability initiatives and corporate social responsibility efforts to align with changing consumer preferences and global environmental concerns.