Audi Car Case Study

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Audi Car Case Study

Company Name

Audi Car

Type of Industry

Automobile

Headquarters

Ingolstadt, Germany

Sales/Revenue

€59.248 billion (2018)

Area Served

Worldwide

Number of Stores

11 production facilities in 9 countries

Competition

BMW, Mercedes, Jaguar, Porsche, Aston Martin, Bentley, Ferrari.

USP

Innovative products with immaculate design

Target Group

People interested in purchasing higher priced luxury vehicles

Products

Luxury cars, SUVs, Hybrids

Website

www.audi.com

Audi Car Introduction

The German multinational automobile giant, Audi AG (Audi), has pioneered in terms of producing impeccably designed and engineered automobiles for customers across the globe. One of the leaders in the production of luxury vehicles, Audi, a member of the Volkswagen Group, has crossed the confinements of boundaries to reach global customer segments in different countries. Having subsidiaries like Lamborghini, Ducati etc, Audi has been able to appeal to the senses of millions of customers worldwide. For the successful completion of the Audi car case study it is essential to conduct a thorough SWOT analysis and PESTLE analysis, and this is also essential to estimate and determine the market position of Audi in a thorough manner.

Audi Car Swot Analysis

The Audi car case study should have its inception with a Strength, Weakness, Opportunities and Threats (SWOT) analysis of Audi. This inception is needed to ensure a logical flow in the Audi car case study.

Strengths

One of the primary strengths of Audi is its global brand image. Audi has been able to build up a large product portfolio that includes variants like petrol, diesel and hybrid. Moreover, the impeccable design of its luxury vehicles has continued to appeal to the sense of aesthetics of targeted customers. Moreover, the Audi car case study reveals that the worldwide popularity of Audi cars relies largely on Audi’s safety features. It should also be noted that the capacity of investing in implementation of innovative technologies is yet another crucial strength of Audi. Besides, through sponsoring prestigious motor-sport and other sport events globally, Audi has added to its strength of sustaining its market reputation on a global basis.

Weakness

The Audi car case study reveals that the primary drawback that has contributed to the weakness of Audi is the higher cost of maintenance of its vehicle which is relatively high than the maintenance cost of the vehicles produced by its competitors. Moreover, market and customer perception in some regions have also added to Audi’s weakness. In this respect it should be noted that in some regions, Audi cars are perceived as products belonging to a tier two luxury brand. Besides, lesser degree of indulgence in developing the promotional and marketing efforts (compared to competitors like BMW, Mercedez, and Lexus) should also be considered a weakness of Audi.

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Opportunities

Despite having weaknesses, there are ample opportunities for Audi to overcome some specific growth-related challenges. The Audi car case study reveals that Audi has been doing well in the hybrid car section and the growing demand of hybrid cars worldwide provides opportunities to Audi to expand to new markets in different countries that have been unexplored in terms of market penetration. Moreover, such growth in demand for hybrid cars also provides Audi with the opportunity to grow its business in the present markets. It should also be noted that Audi has the opportunity to diversity its product range and place some of the products to the low cost segments. This will help Audi to enter new market segments.

Threats

Growing rate of competition with the industry is one of the primary threats to Audi. The Audi car case study also reveals that, the aggressive market strategy of competitors like Mercedez, BMW, and Lexus should also be considered as a serious threat to Audi’s business growth and development. Moreover, gradual saturation of the luxury car market in Europe should also be considered a threat to the revenue earning trend of Audi. Besides, lack of investment in innovation also poses serious threat to Audi’s business on a global basis.

Audi Car Pestle Analysis

In order to make sure that the Audi car case study is successfully completed, it is essential to conduct a thorough analysis of the political, economic, social, technological, and legal environments in which Audi operates. Assessment of the concerned factors against the backdrop of some specific environmental factors will provide a deeper insight into Audi’s global business position.

Political Environment

Political environment plays a crucial and decisive role in determining the future of a business. This reality also holds true for Audi. The Audi car case study reveals that, till date Audi has considered itself lucky owing to the fact that it has succeeded in operating in countries with stable governments and stable political conditions. Political stability is a great determinant in terms of assuring business growth and development, and as Audi has been operating in countries characterized by stable governments, its business growth and expansion has been ensured. Moreover, being a German automobile company, Audi has been less affected by the growing political tension between China and the United States.

Economic Environment

Economic environment plays a decisive role in shaping the present and future of a business. In this regard it should be noted that the growing economy of different countries of operation has increased the demand for Audi’s luxury vehicles and this has contributed to Audi’s business expansion and growth. The steady rise in the global economy in the post-recession period has triggered the rise in the sale of luxury cars, and this has positively impacted on the global business of Audi. Moreover, growth in the sales of sports vehicles and hybrids has also paved the way for Audi to sustain business success worldwide.

Social/Socio-Cultural Environment

Audi has been able to establish as a socially responsible brand emphasizing a culture of community and social development. Audi’s corporate social responsibility (CSR) activities have contributed to the rise in the degree of its global market reputation. Audi has succeeded in appealing to the cultural preferences of different customer segments while designing its vehicles and this has boosted its business and social reputation. Moreover, from the social perspective, Audi assumes responsibilities in five key areas of products, environment, employees, society, and business operations (Audi Media Center, 2012), and this has enhanced its social reputation as a responsible business entity.

Technological Environment

Audi, as the Audi car case study reveals, has been successful in implementing innovative technology into its production process, and this has added to the strengths of the Company in a thorough manner. Audi has dedicated its research and development (R&D) team to accomplish the objective of making individual premium mobility come alive (“Experience Audi”, n.d.). It is to accomplish this objective that the Company has blended experience with technological innovation in a finer manner. Moreover, it should be noted that Audi Innovation Research (AIR) is an R&D program of Audi that is thoroughly meant for infusing new and innovative technologies into its vehicle production mechanism to ensure a greener environment (“Experience Audi”, n.d.).

Legal Environment

Audi, in the past, has suffered from legal complications. For instance, in the past Volkswagen had to pay a huge sum of money as fine for violating regulations related to emissions, and this impacted negatively on the overall business of Audi. Presently, Audi is rendering efforts to remain compliant with emission regulations in every country of operation, and moreover, the automobile giant has also ensured production of vehicles that are compliant with driver safety and environmental safety regulations.

Environmental Factors

Till date, Audi has been able to establish itself as a environment and energy-friendly automobile company. To enhance its image as a eco-friendly Company, Audi has been investing more in the production of energy-efficient vehicles and innovative eco-friendly hybrids. Such efforts are meant for making the Company more environment-friendly in the long-run.

Conclusion

The Audi car case study has revealed that the Company has been rendering efforts to sustain its market reputation through investing in social, legal, and environment needs. Both the SWOT and PESTLE analyses conveyed the fact that Audi is continuing to emerge as a leader within its industry, promoting itself as an environmental-friendly, and innovative business entity.

References

Audi Media Center (2012). Audi publishes its first Corporate Responsibility Report. Retrieved August 10, 2019, from https://www.audi-mediacenter.com/en/press-releases/audi-publishes-its-first-corporate-responsibility-report-2274

Experience Audi (n.d.). Retrieved August 10, 2019, from https://www.audi.com/en/experience-audi.html

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