automotive industry, German automobile industry, PEST analysis, Porter analysis, government policy, electromobility, electric cars, Chinese car market, American car market, Volkswagen
The main content of the essay concerns the Automotive industry. The essay is divided into three sections. First, section one is concerned with the German Automobile industry, combining with PEST and Porter's 5 forces analysis tool, which measuring the competitiveness of the sector in both external and internal environments in detail. Furthermore, discussing implications for firms and customers with regards to the competitive structure of the industry, plus identifying any government policy and discuss the affects of it on the industry. After that, determine reasons why this policy exists and the implications of that policy on firms. Second, considering three countries each belongs to a different world region. Next, analyse and compare the attractiveness of these countries as a market to the same industry. Finally, choose a country and discuss the entry modes and ownership strategies that country should adopt to enter two different countries. This essay will use data and frameworks to illustrate and justify answers with familiar theories.
[...] United Kingdom overs access to markets and distribution networks to increase capacity. Greater resources, technology and finance with highly trained workforce. However, costs and risk is shared with the partner. • Licensing and Franchising: Licensing and Franchising differ in the period of commitment. Beneficially, firms do not have economic commitment of personnel and capital, also low political risk exposure. A disadvantage is risk of technological appropriation by licensee, where licensee firm may transfer into a competitor; damage brand name, therefore, licensor would have lack of destiny in the licensee country. [...]
[...] The New York Times, (2017) In Crisis, Angela Merkel Prefers Elections to Minority Rule. [Online] Available at: https://www.nytimes.com/2017/11/20/world/europe/germany-merkel- coalition.html Accessed on [28th Dec 17]. Financial Times, (2017) German inflation rises faster than expected. [Online] Available at: https://www.ft.com/content/2b275001-8c8c-3a35-8f58- bd92bf5575d2 Accessed on [29th Dec 17]. Trading Economics, (2017) Germany inflation rate. [Online] Available at: https://tradingeconomics.com/germany/inflation-cpi Accessed on [29th Dec 17]. Getting The Deal Through, (2017) Commercial Contracts. [Online] Available at: https://gettingthedealthrough.com/area/88/jurisdiction/11/commercial- contracts-germany/ Accessed on [29th Dec 17]. Economic Freedom, (2017) Index of United States. [Online] Available at: http://www.heritage.org/index/country/unitedstates# Accessed on [29th Dec 17]. [...]
[...] P., (1983) Strategies for joint venture success. New York: Praeger. Luo, Y. D., Shenkar, O., & Nyaw, M. K., (2001) A dual parent perspective on control and performance in international joint ventures. Journal of International Business Studies, 31: 19-38. Anderson, E., & Gatignon, H. (1986) Modes of foreign entry:A transaction cost analysis and propositions. Journal of International Business Studies, 17: 1-26. Levitt T. (1983) 'The globalization of markets', Harvard Business Review, May/June: 92- 102. Bartlett C.A. and Ghosal S. (1992) Managing Across Borders, London: Century Business. [...]
[...] government influences on the economic success. America's free market is encroached by the favouritism of politics, therefore, free enterprise limits personal freedom, which flourish America's economy (The Heritage Foundation, 2016). (Own creation. Overall score of Economic Freedom. Source: Economic Freedom, 2017) Political instability takes over in the U.S., political turbulence rose after Trump's won the presidential elections, where America is number 114 in the most peaceful countries rank (The Telegraph, 2017). High inflation has increased to from 2.1 at the beginning of the year in fluctuation. [...]
[...] Germany population from 2000 to 2015 in millions. Source: The Statista, 2017) Technology: Technology and innovation have become important determinants of success, Germany automotive industry empowers firms to develop cutting-edge technologies which perfectly fit to meet future's mobility needs. The Automotive Industry in Germany (2016) reviews technological trends in the industry in terms of sustainable mobility, which is improving efficiency and developing alternative drive technologies. Government is funding companies to adapt to more innovative in electromobility, where there should be 1 million cars in Germany by 2020. [...]
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