Audi China
Audi and Operations in China
Company Overview
Audi has a long and rich heritage as being a manufacture of luxury automobiles. The business has been in existence for more than a century when August Horch invented his first car in 1901 with the help of his workers (Audi Quattro, N.d.). Horch was later forced out of his own company in 1909 due to trademark infringements, 8 years after the company's first car completed finished production in the plant in Zwickau, Germany. Sometime later four companies merged to form a new company referred to Audi and used four interlocking rings as a company logo that is still being used today. Audi's current vision for the company is (Audi, 2015):
Vision: "Audi -- the premium brand"
"The Audi brand has focused on the challenges of the future in adopting its Strategy 2020. The strategy took on firmer contours during 2011 as the full potential of the mission "We delight customers worldwide" was explored in greater depth. It now gives more weight to new issues that have emerged as a result of heightened environmental awareness, growing uncertainty about the future availability of fossil fuels and increasing urbanization."
Audi today is owned by the Volkswagen Group which overall sells nearly three million cars a year in China. Under the Volkswagen umbrella, the company manufactures entire automobiles in China, sells and services them, and has some factories that produce parts and components. The Volkswagen group is the largest international company operating in the Chinese market largely because it was one of the first multinational companies (MNC) to enter the market in 1978 and was also the first international brand to establish manufacturing capabilities in the country. The company now has sixteen subsidiaries in China with its headquarters in Shanghai. This analysis will look at Audi's current financial position related to its Chinese operations as well as a discussion of its future opportunities.
Figure 1 - Audi's Worldwide Production Totals (Audi, 2015)
Audi in China
Audi is currently China's number one luxury auto brand by market share and it is projected that Audi will sell one hundred-forty thousand more cars in this market than its closest competitor BMW (Murphy, 2014). The Audi...
I was able to use these enhanced skills to successfully set the store apart from the competition by means of product differentiation and targeted sales strategies, as well as specific product promotions. I worked with my team and the community to enhance the benefit our products could provide to customers. 2. Why do you want this job? I believe that your company and I can be of mutual benefit to each
Introduction Audi produces luxury brand sedans for consumers around the world. As the manufacturer of premium automobiles with its main production facility in Ingolstadt, Germany, but with plants in Hungary, China, Thailand and Brazil as well, the company relies upon more than 1000 suppliers throughout its global supply chain. Selecting International Strategy The six components of global supply chains include: strategy and alignment; supply chain assets and routing; process, procedures and systems; planning
Executive Summary There is a shift in the Chinese luxury car market, and BMW is building a plant to take advantage of it. The top three luxury automakers – by far – are Audi, BMW and Mercedes. They each are very similar to one another, and have similar market shares in China as well. Early adopters in China were the newly-rich, making their first luxury car purchase as a status symbol.
Marketing Strategies that Provide BMW with a Competitive Advantage In less than a century, the German automaker Bayerische Motoren Werke ("Bavarian Motor Works" but hereinafter alternatively "BMW" or "the company") has developed a brand with global recognition based on high quality production values and craftsmanship in design. Today, together with major competitors such as Audi, Lexus and Mercedes, BMW competes in the worldwide luxury automobile industry with operations in more
The two major rivals on the Chinese market are BMW and Audi. As a consequence, BMW has cut its retail prices in 2005 for its three and five series sedans by 12% or 13%, which caused a decrease of $12,048 for BMW 530i (Xinhua News Agency, 2005). As specialists in the field have predicted, since 2005 the Chinese luxury and sports vehicles market has diversified, and so did the competition.
The process would then need to continue so that the changes that can be seen in the environment can also affect the changes in entry strategies. Environmental factors, economic factors, political/legal factors, social/cultural factors and also technological factors should all be considered. The legal factors that need to be addressed include issues in employee law, monopolies and mergers legislation, environmental protection laws, and wider issues such as foreign trade regulations.
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now