International Business Strategy Essay Example | Topics and Well Written Essays - 1750 words - 2

International Business Strategy - Essay Example Audi has been recording impressive growth in revenues and profitability due to its aggressive international expansion strategy that aims at attaining a global market leadership luxury vehicle market (Majaro, 2012, p 56). For instance, Audi recorded 4,440 million Euros in profits which were an increase of almost 69 percent of the previous year performance (Majaro, 2012, p 110). The paper will assess the international business strategy of Audi over the past five years and highlight the past failures and successes of the company. The paper will conduct as PESTLE analysis of the international markets of operation and identify how Audi has succeeded in effectively marketing its products in the international market. The paper will also assess the resource capability and competitive strengths of Audi in its international business strategy. International business strategy for the last five years Audi has followed a long-term expansion plan in to emerging markets for the last five years. The marketing strategies entail development of new markets and 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 development of Eastern Europe markets such as Russia and Latin America markets such 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 industrialisation and high direct foreign investments. Global manufacturing and exportation 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 constan tly depend high quality cars that are fuel-conserving in order to offer the customers advanced and modern driving experience that resonates with the target market expectations (Peng, 2009, p 110). For 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 the Audi’s engines for the small car line such as 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 t he 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 in to 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.