Sunday, May 5, 2019
Case Study Assignment Essay Example | Topics and Well Written Essays - 2500 words
Case Study identification - Essay ExampleThe automobile manufacturing manufacturing is globalised by its very nature. Several industry analysts and securities industrying scholars suck up affirmed the aforementi geniusd, arguing that with very few exceptions, car manufacturers look towards the global market, identify segments therein and research to create a niche for themselves inwardly that expansive, borderless market (Dickson-Simpson, 2007 Schweinsberg et al., 2007 Van Acker and Uludag, 2007). It is a globalised industry due to the planetary nature of its product, the fact that not all countries have a domestic automobile manufacturing industry, and that variant and diverging consumer cost, design and quality requirements cannot be satisfied by a limited number of manufactures (Dickson-Simpson, 2007 Schweinsberg et al., 2007 Van Acker and Uludag, 2007). In other words, the very nature of the industry, product, market trends and consumer demands have determined this as a gl obal and globalised industry. Consequently, universe a global industry, the survival of firms within is dependant upon the accurate identification of the industrys threats and opportunities and the extent to which a companys operations are, themselves, globalised.The imperatives of Daimler Chryslers evolving into a truly global automobile manufacturer may be established through a detailed industry analysis using Porters Five Forces. Proceeding first with the factor of rivalry, one finds that within the mise en scene of this industry rivalry is extremely high and is intensifying as a direct conclusion to the formation of horizontal alliances between compute and high-end manufacturers for the explicit purpose of cutting go across on costs. non only is rivalry intense but it is intensifying due to the emergence, not only of new industry players but of alliances which may be identified as a bid by smaller firms to bugger off market leaders. For example, Fiat is allying itself wit h Tata, an Indian automobile manufacturer, fir the explicit purpose of supplying developing markets with the often demanded cheap/economy automobiles. Similarly, GM is forming an alliance with Daewoo for the production of an economic Chevrolet model in South Korea. The tax deduction here is that even in the absence of direct mergers and takeovers, manufactures are teaming up for the design and manufacture of models as would expand their existing market shares in particular automobile market segments. As one looks towards Daimler, one finds that it has not, in its marriage with Chrysler, embraced the imperatives of globalisation for the purpose of maximising its competitive edge. Chrysler is not a manufacturer of budget automobiles and its production costs are high. It is, furthermore, just as the case with Daimler, centred in an industrialised market. This means that the said(prenominal) marriage has not expanded Daimlers global market presence and has certainly not allowed it to cut down on production costs and to venture into different segments of the automobile market. In other words, whereas competitors are forming alliances which hasten the realisation of the latter mentioned goal, thereby giving them a competitive advantage over rivals, Daimler has not. Within the context of the stated, it falls short of being a global company, despite its presence in the global market place.As regards the second of Porters Five Forces, the global nature of the industry has made the threat
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