Audi Swot

Audi began Ger many a(prenominal) in 1932 , it was formed the optical fusion of four different cartaker, In 1969 Volkswagen acquired the business in 2008 Audi delivered more than mavin gazillion cars to customer. Today the business goes from strength to strength and manufacturers in many parts of the world including India. This is a manufacturer of very racy whole step cars tend to be highly engineered robust and priced at a gift level. STRENGTH Audis constitution is undoubtedly based upon a very voiceless marker. In fact the four rings of Audi is one of the most specifiable logos and images globally.The brand is very innovative and the range is continually substantial and extended. Being a German technology product, ostensibly Audi has a reputation for operations management and its production approaches. The conjunction manufactures in excess of 1 million autos a year. Interestingly, more than 1000 of these cars atomic number 18 Lamborghinis, Audis premium supercar bra nd. The company manufactures cars in the German cities of Ingolstadt and Neckarsulm. Audi is too renowned for technology, creativity and innovation.The business invests some $3 billion every year in research and cultivation for its new products. Historically, the companys innovations are quite impressive for example, Audi Quattros four-wheel-drive technology. New innovations embroil light emitting diode headlights (you may have seen them on the highway) and also multimedia Interface (MMI), which is a mash up of entertainment technology, navigation technology, and conversation technology including telephones as well as other innovations, which also rectify passenger safety. WeaknessesOne interesting problem for the business is that whilst it is a very liberal vehicle manufacturer, it doesnt operate on the same huge scale as some of its close competitors, including Ford and Toyota. A simple revenue digest based upon units produced shows that its competitors can make equival ent vehicles more cheaply, simply because of economies of scale. That is to check out relative unit are relatively higher. Audis are German and its brand is associated with its national identity. Whilst in some ways this is a strength, others might pick up this as a particular issue.The brand is very dependent upon its European commercializes. It is relatively small in North America. Some of the sustained sales in Europe have to be due to environmental initiatives and incentives offered by European g everywherenments, and this wont go on forever. The European trade might also go into decline, simply because of the debt being experienced by large markets such as the Greece, Ireland and Spain. In common with some of its competitors including Toyota , Audi has also had to endure the embarrassment of product recalls.Especially for a brand which encompasses security and safety, this could potentially be damaging. In North America, there have been problems with gearboxes (transmissio ns) . Similar problems occurred in the South Korean market. Opportunities Without a doubt the new emerging markets of mainland china and India are huge opportunities for Audi. New car sales are suppuration in both countries as consumers are getting wealthier and more discerning, they ask status brands such as Audi. By 2015, the Indian car market is going to be huge, with estimated sales reaching more than $40 billion.In China figures indicate that sales ordain be in excess of 250,000 million vehicles in a similar period of time. Audi with its innovative history is obviously investing heavily in vehicles which are wretched emission and depart be targeted at the greener car market. Hybrid electric vehicles (HEVs) will hold out very popular in the large countries of the United States and China, whereby petrol station will become slowly replaced by plug-in stations. So obviously the reaping of environmentalism and the nature of global warming stand for that consumers are callin g for low emissions alternatives.Hopefully in the coming years, the global car market will beget to recover and car sales and production will increase. There are a number of drivers. Government programs which offer incentives to consumers to ditch their old plash guzzler to replace it with a modern hybrid car for example, mean an increase in sales. The problems associated with raising credit in Western nations will hopefully disappear and consumers will begin to take loans to finance their vehicle again. Audi has become a leaner business by increasing its acquire per vehicle and reducing its inventory.Threats Like any business which operates in a global economic environment, Audi has to deal with local anaesthetic business environments. For example, regulations by local governments in relation to emissions or safety, or even strategic alliances with local companies in order to enter a market, such as China. entirely please add to the bottom line and reduce margins potentially. Trading in a global market means that the business is essentially heart-to-heart to commodity price fluctuations. Steel prices have been on a helter-skelter.Commodity prices vary, and it makes it unmanageable for Audi to keep costs steady. In the car industry, generally, the largest threat relates to the nature and level of competition in what is a mature industry. There are a number of similar brands including BMW and Mercedes. Car production globally tends to move where the high dependence on elbow grease cannot impact its cost base, so over years to come more manufacturing will move to India and China, where costs of labour are lower. The German worker is comparatively expensive.