The Global Automobile industry reviews the state of play in

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.

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.

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.

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.

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.

Solution

Cost Leadership

Company Name - Toyota motor corporation.

Reason - Toyota uses low cost strategy to gain advantage over its competetors. Toyota achieves cost leadership strategy by adopting lean production, control and careful choice of suppliers, efficient distribution, and low servicing costs from a quality product.

Differentiation

Company name - Ford Motor Company

Reason - I will rate this organization 10 on 10 in terms of product and process innovations and willngness to adapt. Reason is that the company started with a car based on bicycle and today is producing cars that are hybrids, technologically advanced with some features which no other automobile maker provide. And its portfolio have cars to satisfy every customer\'s needs.

Focused strategy

Company name - Tata Motors

Reason - With its product named \"Nano\", it targeted those customers who cannot afford a car but need a car to commute with family. Ratan Tata\'s vision of making a car for this segment came true with this product. Its not just focus strategy example, but it is an excellent example of cost strategy as producing a car which is below $1,530 required a lot of cost cutting methods and its case study is taught in many management schools.