Video case study - subsidy boosts demand for small cars

An excellent example of how a change in an external factor (in this case a subsidy) can affect demand.

Hyundai have seen a 400% increase in car showroom traffic since the UK car scrappage scheme was announced. This follows on from a similar effect on demand arising from scrappage schemes across Europe.

The video raises several issues:
- Managing stocks
- Profit margins
- Building brand awareness