Survival and Success Factors for the Auto-Mobile Industry in the Global Business Environment

This report discusses the impact of the pandemic on the auto-mobile industry and outlines survival and success factors for the industry with considerations to mega-trends. The report covers topics such as innovations, economic factors, distribution network, positive image, cash flow management, compliance, flexibility, product or service substitution, technological factors, environmental factors, marketing and sales, global marketplace, pricing policy, and more.

The Global Business
Environment

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Impact of pandemic on industry and developing survival and success factors...........................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The global business environment refers to the environment in the different sovereign
countries and which have influence on the decision-making on the resources used. The global
business is of two types internal and external factors. The external factors include the social,
political, regulatory, tax, cultural, legal and technological environment. The current report is
based on one of the auto mobile industry which is Jaguar. Jaguar is the very luxury and
expensive vehicle brand of Jaguar Land Rover. It is a British multinational car manufacturer
having its headquarters in Whitley, England and Coventry. The report will outline the impact of
pandemic on the auto-mobile industry and further it will outline the survival and success factors
for the industry with considerations to the mega-trends.
MAIN BODY
Impact of pandemic on industry and developing survival and success factors
The auto-mobile industry has faced the various and significant problem by slowing down
in the gross domestic product. COVID-19 pandemic has the great and severe impact on the
globally integrated auto-mobile industry (Gamil and Alhagar, 2020). It is just because of
disruption in the Chinese parts exports and manufacturing of the large scale interruptions in
Europe. This is affecting and making the great pressure on the industry which is facing the slow
down in the demands. It is the first and foremost health pandemic by which the business and
industry are still facing and adjusting in the competitive market. While this crisis get resolved the
company must be ready for the upcoming rest. By happening of this uncertainty the industry has
also faced the loss in the market and competitive advantage (Naseri, 2021). This has made the
industry complex in order to maintain its reputation in the market. This impact has brought the
many challenges to the auto-mobile industry which are disrupted supply chain, slow down the
process of manufacturing, drop- down in vehicles sales, etc. The continuous changes in the
industry makes them difficult to survive in the global market as this pandemic has affected the
market across the globe. There are many survival and success factors for the industry with
considerations to mega-trends are as follows:
1. Innovations: In the today's fast growing technology in the business environment,
innovations are the must in order to survive in the market. This innovation is the
new offering that used to create the new market and enhances the value of the
business (Shibani, Hassan and Shakir, 2020). The auto-mobile industry also do

the innovation after the happening of the pandemic as it makes the customers
attract to buy that product. Jaguar has to find out that what it has to do in order to
become the innovator in the market. This makes the company to have good
survival in the competitive market. By doing the needed innovations this industry
can earn the good profitability and enhance their market share. This survival
factor will make the auto-mobile industry to grow in the global market.
2. Economic factor: It is the most obvious factor which has a great impact on the
industries. The industry must understand this factor in order to understand the
mega-trends related to the growth of the business (Chang, Liao and Wu, 2017).
This the important factor which may make the industry to grow or decline its
market share in the global market. The organization must find out the economic
process and utilize that process properly in order to survive and get success in the
competitive global market. The industry must find out the economic factor which
would be valuable to their business and makes the industry to grow in the global
market. Thus, understanding this factor makes the company to increase its
profitability and makes the company to growth and thus survival.
3. Distribution Network: One of the most critical success factors for the industry is
having the strong network in the distribution. The industry must have good and
timely distribution channels in order to achieve success and survival in the global
market. As in auto-mobile industry the cars and lorry are not sold directly to the
customers, so the manufacturers of the brand must sell those products to the
retailer on time which makes them to sell their products. After happening of
pandemic there may be slow down in the distribution channel which may
somehow affects the success in the global market (Sony and Naik, 2020). The
industry must focus on this factor in order to maintain survivability in the global
market. The dealers should be knowledgable in order to sell cars, which are
essential for the auto-maker.
4. Positive image: The industry must have the good and positive public image
which makes them to survive in the global market. The pandemic has makes the
company to lose its public image as the people are now only purchasing the
essential goods. The organization must have the positive image because the

buyers wants the safety as they are spending the large portion of their income.
The industry must make sure their customers that they have taken the best buying-
decision. There are many factors which may influence the image the industry
which includes Advertising, expert reviews, opinions and word of mouth. The
auto-mobile industry must focus on these factors in order to grow and survive in
the competitive market. They must also focus on the mega-trends which makes
the industry to have the global shifts which changes the society.
5. Cash flow management: The healthy and proper cash flow is the another
important success factor. When the auto-mobile industry provides the lowest
prices, it used to sell the more cars. But in this case the industry will not earn the
more and adequate profit and will not have the healthy cash flow (Karabag,
2019). The organization must have the good and healthy cash flow after the
COVID which makes this industry to survive in the global market. They must
keep the control on the prices and profits in order to marination the fluctuations in
the market. For this they can do research in the society and adopt the changes
which makes them to have the healthy cash flow. Achieving the healthy cash flow
is the central and foremost decision which makes the company to survive in the
global market.
6. Compliance: It is the another important factor for the industry in order to survive
and get success in the market. As the company has emerging with the global
market they must also follow the compliance in order to trade in the vast
economy. The organization must be ensured that the vehicles they used to sell
must be in compliance with the various federal and local regulations. The
compliance in this industry includes emissions standards, fuel efficiency and the
health and safety standards. The industry should focus on this compliance which
makes the auto-mobile industry to grow and get success in the global market. It
makes the company to produce less cost on producing the goods. They must also
follow the regulations which includes design of the products, how the parts are
manufactured and safety regarding the manufacturing which makes them the
industry to achieve success.

7. Flexibility: It is an elusive success factor for the auto-mobile industry that it must
have ability to be flexible in the market. As the customers may change their
buying habits quickly related to the factors like state of economy, fuel prices and
the new technologies (Akinwale, Akinbami and Akarakiri, 2018). So it is essential
for the auto-mobile industry to be attentive to the changing mega-trends and
provides their customers the new and innovative products. This factor makes the
industry to increase the profitability and get success in the global market. The
organization has to adopt quickly to create new products in order to meet the
current and future needs of the customers. By having flexibility it makes the
industry to grow and survive in the global market.
8. Product or Service substitution: The word substitution means anything that the
customer makes them replace the offerings of the organization. The companies in
this industry makes their products different from the other which makes do not
allow the customers to have substitution of that product. The industry must follow
the mega-trend that means they adopt the global shifts that changes the society
and way of doing the business. The organization should create the strong
positioning and differentiated products that makes the customer to invest in best
offering and makes the industry to grow and get success in the competitive
market.
9. Pricing policy: It is important for the industry to have the good pricing policy for
achieving the success after having the impact of the pandemic. The competitors in
this industry may have different prices which is depended on the different types of
cars and other things produced by the companies (Ali, Ormal and Ahmad, 2018).
They should follow the value-based pricing policy which makes them allow the
ability to maximize the pricing by identifying the value propositions. The
company must make sure to sell its products in the global market and not only
focusing on the price alone. They must show the value of their products rather
than bargaining on the prices. By focusing on this factor it makes the company to
grow and survive in the global business environment.
10. Global Marketplace: The world is becoming the global marketplace for the
customers. Due to happening of the pandemic the divide between the growing

countries and developed countries is shrinking. The industry should focus on the
global market place which makes the company to achieve the success in the
global market. The industry must manage the challenges which are affecting the
market of the industry. Those industries having the global objectives must
establish the solutions for the upcoming challenges and makes the auto-mobile
industry to survive in the global market.
11. Marketing and sales: Marketing and sales are also the crucial factors for any
industry to survive in the global market. The auto-mobile industry must make the
good strategy in order to sell the product as they are costly (Jindal, Jain and
Vartika, 2017). By having the good strategy they attract the customers in order to
buy the cars and increases the profit of the company. The organization must find
the best strategy and understand the fundamental marketing principles related to
the mega-trends. This makes the industry to keep doing and improving the
policies in order to survive in the market.
12. Environmental factors: The environmental factor is the most common issue
which is faced by every second organization. The organization must keep this
factor as the priority in order to survive in the macro-environment. The industry
creates the more pollution in the environment so it must focus on producing the
environmental-friendly cars which requires less fuel. In order to do the global
business, the company must have to manufacture the eco-friendly cars which does
not leads to the pollution in the different countries. The more the industry
producing the eco-friendly product the more it will survive in the global market.
13.Technological factors: These factors includes the production techniques,
marketing, resources, e-commerce technologies, etc. These factors may affect the
operation of industry in order to sell its products to the suppliers and customers
(Automotive Critical Success Factors, 2021). The industry must focus on
improving its technology in order to produce the body parts of the company.
Improved technology will make the auto-mobile industry to survive and get
success in the global business environment.

CONCLUSION
From the above report it is concluded the impact of the pandemic on the industry. The
industry includes the auto-mobile industry which has affected by the happening of the pandemic.
This makes the industry hard to survive and get success in the global market. So, this report has
described the some survival and success factors with consideration from mega trends which
includes innovations, economic factor, distribution network, positive image, cash flow
management, compliance, flexibility, product or service distribution, technological factors
environmental factors, marketing and sales, global marketplace, pricing policy and product or
service substitution.

REFERENCES
Books and Journals
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automobile sector of Germany. Journal of Economics and Management Sciences. 1(1).
pp.57-67.
Chang, W. J ., Liao, S. H. and Wu, T. T., 2017. Relationships among organizational culture,
knowledge sharing, and innovation capability: a case of the automobile industry in
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