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company, regardless the quality of the product, a well defined strategy is vital. Even goods with the best price and quality ratio do not necessarily become a bestseller, and the company that is producing it does not necessarily deserve credibility. Market research that is defining needs and desires and, most importantly, the purchasing power of citizens, is one of the most important parts of the first steps of the company on the market, and also the following existence within certain markets.
Internationalisation in the context of globalization became one of the most important conditions to keep the leading positions in different areas of business. Expansion to the european markets is happening according to the proven scenarios, but the post-Soviet Russian market development is a challenge for the management of the companies. Although, the potential of the russian market is so huge, that the companies take the risks to create market entry strategies expecting future revenues.
The automotive branch is a special branch of the Russian market. Taking into consideration the attitude of Russian people to the domestic automotive industry, foreign investors pump in considerable amounts of money into the development of their branches.
The timeliness of this work is determined by the fact that nowadays the speed of internationalization is one of the most important factors of the company growth. In high-tech automotive industry the right market entry is vital as consumers consider traditional factors such as price and usability, and also status of the brand and the country of production. So, the main question is the choice of the form of a new market entry with the best risk and profit ratio.
The object of work is the strategy of internationalization in the automotive industry.
The subject of the work is to study the strategic positioning of the global automotive suppliers according to the degree of business internationalization.
The objective is to prove that even in the global context we should take into account the specifics of the business and consumer behavior in different countries and regions for the successful business ventures.
To achieve the objective we consider following tasks:
1. Consider the basic strategies for the market entry and identify their characteristics.
2. Analyze the study cases of the automotive industry's largest firms that went through internationalisation.
Contents: the work consists of an introduction, main body, conclusion and bibliography.
INTRODUCTION 3
1. STRATEGIES TO MARKET AS A WAY OF INTERNATIONALIZATION 5
1.1 General strategies for the foreign market 5
1.2 Choosing the right market entry strategy 8
2. AUTOMOTIVE MARKET AND ITS STRATEGIES 11
2.1. Key aspects of strategies in the automotive market 11
2.2. The main directions of development in automotive business 15
CONCLUSION 18
LIST OF REFERENCES 19
In the conclusion it would be desirable to tell that decision to buy a car today is influenced by economy fuel efficiency.
So at the end of this work we need to summarize how all these trends will affect the strategic decisions of companies in the automotive sector. The main consequence will be increasing exports to the BRIC countries and the expansion of their presence in the market, especially in the segment of premium cars. The closest attention will be paid to new methods of advertising and closer cooperation of the head office with the dealers in their local markets. Traditional markets will focus mainly on efficiency and compactness of cars.
Consumers in emerging markets are interested in upper price segment, and in developed countries the key importance is compactness and simplicity of design.
Despite the fact that the next important step in the development of the automotive industry sees the spread of hybrid vehicles with the ability to recharge from the mains, machines powered by batteries is not popular with consumers and producers continue to invest in the improvement of internal combustion engines (ICE).
1. Annual report 2012. BMW AG website. URL: http://annual-report2012.bmwgroup.com/bmwgroup/annual/2012/gb/English/pdf/report2012.pdf (дата просмотра 19.05.2013
2. Toyota Motor Corporation Global Website. URL: http://www.toyota-global.com/company/profile/figures/vehicle_production_sales_and_exports_by_region.html
3. General Motors Company| Official Global Site.URL: www.gm.com
4. Kabadayi, S., & Lerman, D. Made in China but sold at FAO Schwarz. country-of-origin effect and trusting beliefs. International Marketing Review, 28-2011, pp. 102-126.
5. Niels G. Noorderhaven, Ann-Wil Harzing: “The “country-of-origin effect” in multinational corporations: Sources, mechanisms and moderating conditions“, in Management International Review, vol. 43 (2003), special issue 2, pp. 47-66.
6. Ritson M. Do smaller brands have better marketers? Branding Strategy Insider - http://www.brandingstrategyinsider.com/2008/12/d.html#.UY4dA6K-2So
7. Roll M. Branding: The Country Of Origin Effect // Branding Strategy Insider. 2008. [Электронный ресурс]. URL: http://www.brandingstrategyinsider.com/2008/03/branding-the-co.html#.UZDewKK-2So
8. Terence A.Shimp & Subash Sharma – Consumer ethnocentrism: construction and xValidation of CETSCALE, Journal of marketing research, vol XXIV Aug. 1987, pp 280-289/
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company, regardless the quality of the product, a well defined strategy is vital. Even goods with the best price and quality ratio do not necessarily become a bestseller, and the company that is producing it does not necessarily deserve credibility. Market research that is defining needs and desires and, most importantly, the purchasing power of citizens, is one of the most important parts of the first steps of the company on the market, and also the following existence within certain markets.
Internationalisation in the context of globalization became one of the most important conditions to keep the leading positions in different areas of business. Expansion to the european markets is happening according to the proven scenarios, but the post-Soviet Russian market development is a challenge for the management of the companies. Although, the potential of the russian market is so huge, that the companies take the risks to create market entry strategies expecting future revenues.
The automotive branch is a special branch of the Russian market. Taking into consideration the attitude of Russian people to the domestic automotive industry, foreign investors pump in considerable amounts of money into the development of their branches.
The timeliness of this work is determined by the fact that nowadays the speed of internationalization is one of the most important factors of the company growth. In high-tech automotive industry the right market entry is vital as consumers consider traditional factors such as price and usability, and also status of the brand and the country of production. So, the main question is the choice of the form of a new market entry with the best risk and profit ratio.
The object of work is the strategy of internationalization in the automotive industry.
The subject of the work is to study the strategic positioning of the global automotive suppliers according to the degree of business internationalization.
The objective is to prove that even in the global context we should take into account the specifics of the business and consumer behavior in different countries and regions for the successful business ventures.
To achieve the objective we consider following tasks:
1. Consider the basic strategies for the market entry and identify their characteristics.
2. Analyze the study cases of the automotive industry's largest firms that went through internationalisation.
Contents: the work consists of an introduction, main body, conclusion and bibliography.
INTRODUCTION 3
1. STRATEGIES TO MARKET AS A WAY OF INTERNATIONALIZATION 5
1.1 General strategies for the foreign market 5
1.2 Choosing the right market entry strategy 8
2. AUTOMOTIVE MARKET AND ITS STRATEGIES 11
2.1. Key aspects of strategies in the automotive market 11
2.2. The main directions of development in automotive business 15
CONCLUSION 18
LIST OF REFERENCES 19
In the conclusion it would be desirable to tell that decision to buy a car today is influenced by economy fuel efficiency.
So at the end of this work we need to summarize how all these trends will affect the strategic decisions of companies in the automotive sector. The main consequence will be increasing exports to the BRIC countries and the expansion of their presence in the market, especially in the segment of premium cars. The closest attention will be paid to new methods of advertising and closer cooperation of the head office with the dealers in their local markets. Traditional markets will focus mainly on efficiency and compactness of cars.
Consumers in emerging markets are interested in upper price segment, and in developed countries the key importance is compactness and simplicity of design.
Despite the fact that the next important step in the development of the automotive industry sees the spread of hybrid vehicles with the ability to recharge from the mains, machines powered by batteries is not popular with consumers and producers continue to invest in the improvement of internal combustion engines (ICE).
1. Annual report 2012. BMW AG website. URL: http://annual-report2012.bmwgroup.com/bmwgroup/annual/2012/gb/English/pdf/report2012.pdf (дата просмотра 19.05.2013
2. Toyota Motor Corporation Global Website. URL: http://www.toyota-global.com/company/profile/figures/vehicle_production_sales_and_exports_by_region.html
3. General Motors Company| Official Global Site.URL: www.gm.com
4. Kabadayi, S., & Lerman, D. Made in China but sold at FAO Schwarz. country-of-origin effect and trusting beliefs. International Marketing Review, 28-2011, pp. 102-126.
5. Niels G. Noorderhaven, Ann-Wil Harzing: “The “country-of-origin effect” in multinational corporations: Sources, mechanisms and moderating conditions“, in Management International Review, vol. 43 (2003), special issue 2, pp. 47-66.
6. Ritson M. Do smaller brands have better marketers? Branding Strategy Insider - http://www.brandingstrategyinsider.com/2008/12/d.html#.UY4dA6K-2So
7. Roll M. Branding: The Country Of Origin Effect // Branding Strategy Insider. 2008. [Электронный ресурс]. URL: http://www.brandingstrategyinsider.com/2008/03/branding-the-co.html#.UZDewKK-2So
8. Terence A.Shimp & Subash Sharma – Consumer ethnocentrism: construction and xValidation of CETSCALE, Journal of marketing research, vol XXIV Aug. 1987, pp 280-289/
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