Strategic Plan Assignment Example | Topics and Well Written Essays - 2500 words

Strategic Plan - Assignment Example 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. 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 taken together, increased vehicle sales by 70-80% and production by almost 80-90%(Auto Industry Statistics). Car sales growth rate in 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 predicated to reach 4.8 million by 2015. It is estimated that global car industry revenue reach 903 billion Euros by 2015. So the car industry has been focused on the potential of the emerging markets to offset the in dustries maturity and stagnation in the Triad economics of scale and spread the costs of developing new models. One of the main features of 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. The strategic tools and different analysis techniques that we used to critically analyze the industry are: Macro environment: PESTEL analysis Industry: Porter's five forces Strategic groups and Cognitive map Key Factors for Success Marketplace: Market Segmentation, Targeting & Positioning Telescopic Observation Matrix Political forces as well as WTO regime plays major role in 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 economical changes North American & European manufacturers opened new plants in Eastern Europe, Asia and South