Evaluation of Growth Potential of Audi in Indian Automotive Market

International
Business Project

Contents
Contents...........................................................................................................................................2
1) Executive summary.....................................................................................................................3
2) Scope, aim and topic of the report...............................................................................................4
2.1 Scope of the report:..........................................................................................................4
2.2: Aim of the report.............................................................................................................4
2.3: Topic of the report...........................................................................................................4
3. Background to Audi.....................................................................................................................5
4. Data collection sources and analytical methods..........................................................................7
4.2 analytical techniques justification..............................................................................................9
4.2.1 Porters five forces:................................................................................................................10
4.2.2 Value chain analysis explanation and justification...............................................................12
4.2.3 Ans off growth matrix...........................................................................................................16
5. FINDINGS.................................................................................................................................16
5.1 RESULTS OF THE EXTERNAL ANALYSIS: PORTER`S FIVE FORCES.......................16
5.1.1 INTERPRETATION OF EXTERNAL ANALYSIS FINDINGS........................................18
5.2 results of internal analysis:.......................................................................................................20
5.3 RESULTS AND IMPLICATIONS BASED ON THE ANSOFF MATRIX ANALYSIS......21
6. RECOMMENDATIONS...........................................................................................................21
REFERENCES..............................................................................................................................22

1) Executive summary
The present research has taken out information about the company AUDI. It has
conducted Porters's analysis, SWOT analysis, VRIO analysis and Ansoff matrix, these have
helped in finding out the opportunities, strengths and threat of the company. This helps business
to move towards growth and success.

2) Scope, aim and topic of the report
2.1 Scope of the report:
The present report is focussing on the way a particular organisation is willing to expand itself in
some of the existing markets by application of some suitable growth and development strategies.
It is a critical process for the purpose of ensuring survival of a organisation in long in case of
various expanding industries.
Selected industry is automotive industry that is willing to expand itself in some markets. In the
time period of last 10 years there is increase in the ownership by 8 percent and the overall
sending on the motorised vehicles have also enhanced by 34 percent. It becomes important for
the industry to analyse the overall potential of growth with respect to the way there can be future
expansion. Audi is selected as the present automotive brand that has to be expanded to INDIA
that is a developing country. Audi is a German automobile manufacture brand that is designing,
engineering, producing, marketing and further distributing the luxury care vehicles. It is a
subsidiary of the Volkswagen group and is having its roots in Bavaria, Ingolstadt and Germany.
2.2: Aim of the report
The aim of the report is to make evaluation of the BMW’s growth potential and strategies in
Indian automotive markets for proposing growth strategies for expanding by using of framework
such as value chain analysis, porters five forces analysis and ansoff growth matrix.
2.3: Topic of the report
The report is based on evaluation of growth potential in Indian automotive market so that there
can be appropriate strategies that have to be formulated based on the analysis that will be done
by application of ansoff growth matrix.
With the changing external environment there are many emerging markets that are offering
opportunities of growth and expanding for may automotive brands. For this purpose it becomes
important to make an evaluation of the way these countries can offer some opportunities of
growth and development to such automotive brands. In the recent reports as per news articles
India has been rated as the second most attractive and emerge markets after china as per the
recent report. With considerations of the high visibility indicators across leading markets the
relative position of India has improved both selectively and overall. There are various indices
that are looking at reach economic activity such as financial reports, composite scores are

reiterating a practioner of nation’s recovery and after that now India is one of the big countries
behind only turkey and china that has managed to achieve a positive GDP growth in the fourth
quarter of year 2020. With the proper capital outflow it can be said that the bond market of India
is concerned with the rising inflation and public debt. There is posting of higher inflation than
numbers that is leading to better prospective of growth for various other sectors.
3. Background to Audi
Audi is a German automobile manufacture that is engineering, designs, produces, markets and
distributes luxury vehicles, and it is a subsidiary of Volkswagen group. The origin of the
company is complex and is leading to foundation of auto union in 1932. The modern era of audi
essentially started in 1960 when Auto union was acquired by Volkswagen from Daimle Benz.
After launching of Audi brand in the year 1965 there was introduction of Audi F103 series.
Sales revenue and earnings:
The Audi brand sales revenue in year 2020 is amounted to 50.0 (55.7) billion. There is decrease
in volume and negative exchange rate reduced the operating profit before special items 2.7 (4.5)
billion Euros. There is reduction in the fixed cost there deconsolidation effect from
disinvestments of autonomous intelligent driving GmbH (AID) as well other effects from Audi.
The diesel issues has resulted in special items of €−0.2 billion in the reporting year. The overall
operating return on ales before the special item was 5.5 (8.1) percent, the financial key
performance indicators of Ducati and Lamborghini has include the financial figures of the Audi
brand. Audi is pursing clear goals for not only striving to secure the long term competiveness but
to meet the interest groups for conducting business in a more value oriented way by staying for
upcoming future time period.

Source: Audi's operating profit from FY 2002 to FY 2020
The graph represents the operating profit of Audi from the fiscal year 2002 through the fiscal
year 2020. In the fiscal year 2020 he operating product of Audi amounted between 2.5 and 2.6
billion euros.
Business development: In the present scenario Audi can focus on “vourspring” which is Audi’s
global brand promise that is redefined b brand with four rings that moves away from the narrow
focus towards technical feasibility. The brand is willing to adopt a complete new approach where
customer is at the centre. There is development of innovative technologies where Audi is playing
an influential role in group. Audi has also created a an agile unit for some of the new projects
where the initial focus of the team is towards passionate specialists who are provide with large
degree of freedom. There is development of high efficient electric car. For instance AZrtemis is
tithe role model for upcoming future development of various vehicle projects in group. In the
reporting time Audi rolled out second model as part of e-term product line. Audi e –torn sport
back is a SUV coupe that is combined of the power of spacious SUV with elegance of four door
and there is a progressive character of electric car. This electric drive offers up to 300 KW of
power with a high performance version that is capable of delivering of 370 KW. The e-tron in

digital matrix LED headlights is the new optional feature that is available for first time in large
scale production of vehicles. The legit can be broken in tiny pixels and that can be controlled
with exceptional precision. It makes the safe lane centring much easier on the narrow starches on
road and is growing the position of ceciles in lane. Production of all electric e tron GT
commenced at end of year 2020. The Q4 e-tron and the Q4 sport back e-tron can expand its
portfolio of vehicles in the year 2021. There are many new model generations that have been
launched in popular A3 series during his reporting year. In recent years it can be said that amid
all the difficult marketing environment AUDI brand has been able to deliver 1.7 million vehicles
to its customers in year 2020. The recovery is important for core markets in the second half of
the year as it was able to largely compensate for the volume losses that occurred in first half of
the year because of the pandemic. The overall unit sales that have been made in the reporting
period came to 1.0 million vehicles. The Chinese joint venture FAW-Volkswagen has sold a 656
thousand locally produced Audi vehicles. In year 2020 Audi has also produced 1.7 million units
worldwide. Lamborghini has manufactured 7,250 vehicles.
4. Data collection sources and analytical methods
The present report is based on using of secondary collected data that is acquired from
various multiple sources that is presented in the table mentioned below. For this purpose there is
use of qualitative methods in order to make a analysis of the BMW’s growth potential in the
Indian automotive industry so that further there can be determination of strategies in accordance
with the specific requirements.
Selected data source Justification
Annual report Audi Annual reports are the yearly reports of a
organisation that include all the specific
information with relevant figures, facts and
all the detailed information with respect to
particular organisation. It includes a
management report that is based on the
vision, mission strategies, risks,
opportunities operations and the overall
future outlook of a business along with
various financial statements it is on the

interest of the organisation to present the
information positive manner so that it is
available to all the interested parties. There
must not be any type of misleading
information that is part of annual reports. In
case of present report the use of annual
reports is very helpful for the purpose of
having all the relevant specific information
that is related to the organisation. It helps in
determination of the correct strategies that is
required by Audi in order to expand its
position and market share in India. The
annual report of Audi is one of the most
reliable sources for the purpose of having
company specific information that can lead
towards formulation of strategies along with
all the information that is required in
quantitative or numerical form.
Ecomonitor passport Ecomonitor passport is a unbiased data base
that is use of the purpose of having a
strategic market research data that is related
with industries, countries, economies and
customers who are part of 781 cities and in
210 countries, it is used by analysts across
100 countries so that there can be
information related the industries, local
markets and companies, the global industry
is a specialist team that is used for the
purpose of ensuring that research is
consistent and is properly conducted. It helps
in having a reliable information base of the