Description

Case Analysis: Audi and the Chinese Market

Submission format - Letter size format, Font - Times Roman, 11 pt, single line spacing, One-inch margin all around, Break down your answers into paragraphs. Proof checked for spelling, grammar and format as well.
                                                                                   

Objective: Read the case Audi and the Chinese Market and answer the following questions using the context given in the case as well as any other specific additional information (as given).
                                                                                   

Questions: All questions are mandatory. Explain clearly where appropriate.

Answer to each question - Max: 1 formatted page -approx 500 words.                      (Max overflow of 40 words/3 lines into next page)

(Total 40 Points)                            

1. From a Trade Theory Perspective, which theory or theories explain VW’s presence in China? Indicate specific linkages with explanation. (6 Points)
                                                                                      
2. Audi has become the leading ‘premium’ car brand in the Chinese market. What are the key success factors of Audi in China? Explain clearly in the context of Audi. (6 Points)
                                                                                      
3. Audi has decided to significantly increase its production capacities in China. The objective is to produce a major part of cars sold in the Chinese market in the two local production plants. Which are the main benefits and risks associated with this strategic choice, notably in regard to the image associated with Audi as a brand “Made in Germany”? (6 Points)
                                                                                      
4. What are the challenges in developing and sustaining unique sources of competitive advantage for Audi? (6 Points)
                                                                                      
5. Why is it that some firms(and industries) locate their investments close to their markets while others appear to have the luxury of a much greater choice in terms of location in the context of the case? (6 Points)
                                                                                      
6. Overall, could there be a strategic trade policy intent from China’s stand point in this case? (6 Points)
                                                                                      
7. A few years ago, the parent groups brand Volkswagen was involved in an emission scandal.

-       See the link https://youtu.be/k65Z-62hIr8
 In the specific context of the video, in strategic terms, how would you analyse ‘buyer power’ of consumers? (4 Points)