Article Writing Homework Help

Hi, need to submit a 3500 words paper on the topic Strategy of Automotive Emerging Markets.

External analysis of global car industry: [On the basis of MACRO (PESTEL) Analysis] (for reference see Appendix-1) The auto industry is often thought of as one of the most global of all industries. The car industry is experiencing rapid changes with globalization (Carson, 2004). Rapid changes are also altering the industry structure and attractiveness. The emerging markets include Latin America (Mainly Brazil), ASEAN countries, Eastern Europe, China, and India. The fast-growing emerging markets took together increased vehicle sales by 70-80% and production by almost 80-90%(Auto Industry Statistics). Car sales growth rate in the US is around 3.5%, in Western Europe around 2.5% and in Japan around 1.5% while in China it is almost 9%. Globally the total car industry employment is predicted to reach 4.8 million by 2015. It is estimated that the global car industry revenue reaches 903 billion Euros by 2015. So the car industry has been focused on the potential of the emerging markets to offset the industries maturity and stagnation in the Triad economies of scale and spread the costs of developing new models. One of the main features of the car industry experiencing is manufacturers extending their operations in developing countries. For global producers, rapidly growing markets in developing countries were meant to provide for spreading vehicle development costs. for establishing cheap production sites for the production of selected vehicles and components. and for access to new markets for higher-end vehicles. “Corporate strategies in regard to globalization vary depending on the starting point of individual firms, but there seems to be a large measure of convergence toward 1) building vehicles where they are sold, 2) designing vehicles with common ‘global’ under-body Platforms while retaining the ability to adapt bodies, trim levels and ride characteristics to a wide range of local conditions” (Sturgeon and Florida, 1999).

Now we are going to analyze in short, different strategic tools, which are available to analyze global car industry.&nbsp.

Political forces, as well as the WTO regime, plays a major role in the opening of the markets for foreign players. Change in the regulations of the market due to governments policies, foreign direct investment increased and also funds started to flow towards developing countries to establish new manufacturing plants. Due to these political and economic changes, North American & European manufacturers opened new plants in Eastern Europe, Asia, and South America. In many cases investment exceeded the potential of markets.&nbsp.