Audi in the Automobile Industry

Provide a 8 pages analysis while answering the following question: Evaluation of International Business Strategy of Audi in the Automobile Industry. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. Audi has followed a long-term expansion plan into emerging markets for the last five years. The marketing strategies entail the development of new markets and the expansion of the existing European markets. Audi has relied on superior manufacturing technology in order to increase its market presence in emerging markets such as China and India (Majaro, 2012,p 45). Audi has also standardized its products across all the markets. Audi has invested heavily in the development of Eastern Europe markets such as Russia and Latin America markets such as Brazil and Mexico that will offer additional revenues and reduce the business risks in the European market. The rapid economic development in the emerging markets offers vital business opportunities for Audi especially Chinese and Indian markets that have witnessed high growth in industrialization and high direct foreign investments.Lock (2003) asserts that Audi deals with luxury-oriented car brands and has maintained sophisticated manufacturing technology in its international business strategy (p 90). Audi constantly depends on high-quality cars that are fuel-conserving in order to offer the customers an advanced and modern driving experience that resonates with the target market expectations (Peng, 2009, p 110). Audi’s Ingolstadt plant produces the A3, A4 and Q5 vehicle models that attract a huge demand in China market. The German manufacturing plant that is based at Neckarsulm manufacturers more advanced cars such as the A7, A8, RS6 and R8 models that are innovative and have high performance-levels. In addition, Audi relies on the Gyor plant that is located in Hungary to manufacture Audi’s engines for the small car line such as the Audi TT and Audi TT roadster. Audi has also expanded its manufacturing centers to China and has established a manufacturing center at Changchun that mainly produced the car models that are desired by the local market such as A6L and Q5 vehicles. Surprisingly, Audi expanded further in the European market through establishing new plants in Spain where the Q3 model is manufactured and sold to the adjacent European countries such as Slovensko. Audi has easy access to manufacturing technology and can convert the raw metal materials into blank parts through the Audi production systems that improve the quality of the processing process (Loch, 2003, p 223).Audi has also used exportation to enter the international markets such as African countries and Middle East countries. Audi has identified numerous foreign distributors who are supposed to sell Audi car models under strategic agreements that foster high customer loyalty (Cunningham and Harney, 2012, p 115).International marketing strategyAccording to Harker (2009), the success of the international marketing strategy is greatly influenced by the national culture, the existing demographics, political environment and market conditions (p 34). Audi has aligned the marketing communication messages and channels with the dominant culture of each particular geographical market. Audi has adopted the marketing strategy with the Chinese and Asian culture in order to foster relationships with the suppliers. Though BMW is the global leader in the luxury vehicle industry, Audi has managed to capture a higher market share in China due to localized marketing strategies.

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