Assignment
The Global Automobile industry reviews the state of play in the global automobile industry in 2009, which can easily be expanded through online resources to the current time. The case describes the economics of the industry. The US market, which is the world's largest, is reviewed is depth. The case also looks at how competition is evolving in the industry, and what the automobile companies are doing to try and cope with the challenges raised in competing in the current state of the economy with substantial global competition.
Notes three main Business-level strategies- Cost leadership, Differentiation, and a Focus strategy. The Focus strategy is typically based on either cost- or differentiation- with the difference being the choice of a market segment for focus strategies rather than the entire market.
Requirements:
The chairperson of Michelin Tire has hired you to prepare an executive summary that illustrates each of the three main types of Business Level strategies.
1) For each of the three types, select an automaker that you believe follows that particular strategy. For example- select Lexus as an example of Cost leadership, Fiat as an example of differentiation, etc.
2) For each of the three strategies- note 1) the company name, 2) a detailed explanation why you believe that Business-level strategy fits that automaker, taking care to identify the reasons that support your answers.
Given that for the most part the auto industry would be considered a mature industry, select one of the companies from #2 above:
3) Note examples from practice of how companies follow the competitive tactics of price signaling, price leadership, non-price competition, and capacity control.