Audi AG's Strategies for the Future

This assignment analyzes Audi AG's strategic positioning in the evolving automotive industry. It examines the company's responses to market trends such as automation, connectivity, and the sharing economy. The analysis utilizes the Ansoff Matrix framework to evaluate Audi's growth strategies and considers various patents and research papers that highlight their commitment to innovation in areas like autonomous driving, machine learning, and drivetrain technology.

Strategic Position
of Audi AG
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.1 Critically evaluate the current strategic position of Audi AG and discuss the basis and
sustainability of its competitive advantage.............................................................................3
1.2 Develop and critically evaluate a range of strategic options available to Audi AG and
ensure the success of its strategy over the next 3-5 years......................................................5
1.3 Applying a chosen methodology, select the most appropriate strategic option for the
organisation to implement. Critically discuss a range of implementation issues associated
with.........................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................15
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INTRODUCTION
Strategic positioning is a positioning of an organisation in the future, it is the reputation
and goodwill of the company which company sustain from the past years. Strategic positioning
of the company includes desired future positioning in the upcoming challenging market. It also
includes some more strategic positioning to compete with the challenges. Strategic positioning is
the overall development of the business activities. Present report will be based on strategic
position of Audi AG, it is the well known brand in auto mobile industry that design, engineers,
products, markets and distributes luxury vehicles Which contributes the best strategic position.
Furthermore, it will be discuss about the organisation strategic positioning and their competitive
advantage. Further apart, it will also discuss about the methodology, select the most appropriate
strategic option for the organisation to implement
MAIN BODY
1.1 Critically evaluate the current strategic position of Audi AG and discuss the basis and
sustainability of its competitive advantage
Audi AG vehicles has produced in nine production facilities worldwide, it will be the
more challenging and situational company which highly depends on the customer services.
Company has been facing very tough competition in 20th century and their initial face
(Blackwelder and et.al., 2016). They move on the strategic position and give great impact on the
behaviour of customers. Audi AG is the member with another well known popular brand
Volkswagen group. Founder of Audi AG August Horch has believes on customer quality and
best luxurious services.
Audi AG has long been one of the most powerful car manufacturer in the premium and
super-car segment. It has been introduced many new luxurious and new models of car services. It
ha covered new major market of auto mobile companies. Moreover, sales subsidiaries of the
Audi AG suppliers cars other Volkswagen group brands to customers. They always continued
their part in long term market (Blasinski and Kaiser, Audi Ag, 2017). Along with that, it will be
more comforting and better knowledge of gaining productive market growth. Company highly
owned by Volkswagen for more than 40 years. They majorly focus on the upper class people
and social group. Professional, rich people afford the prices of Audi AG. They appreciate the
new technology and highly providing the best quality of services to customers. It will be
providing more largely and highly customer services in order to full fill the customer
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satisfaction. Moreover, they always focus on the large number of markets which is highly found
of high technology (Brenneis, Freyer and Hantschke, 2016).
Audi AG fails to grab the attention of middle class social people because of high prices
because of that they cannot achieve 100% customer satisfaction. There are many other
competitors of the company who take advantages of that and provide best services at reasonable
prices. It makes better target market share other than Audi market share. It will be more
enlarging and better market share. Moreover, to grab better opportunity and growth company
needs to make better environmental growth in order to gain the large market of customer.
On the contrary, Audi AG built a very good image in the market in 2017 due to its new
advancement in the car technology (Dremel, C., Wulf, J., Herterich, M.M., 2017). Besides, few
years back Audi faces the issues with their engines or extra oil consuming due to which
Company facing high loss customer dissatisfaction approach. It has been given very bad image
in the market or in front of the other market share. Moreover, another process of working.
Sustainable competitive advantage can be the best way to grab the more prominent way of work.
Moreover, this is the great impact on the company advancement. There are many more
competitors of Audi who can impact directly on the company profit. This may give heavy loss as
well. Company needs to launch new services in frequent manner in order to sustain in the market
positions (Felgenhauer, Stocker and Lienkamp, 2017). This will be the great impact on the
behaviour which might be given new growth factor.
In order to maintaining sustainability in the market company launching new electric cars
and planning to entered into new digital business areas. It also provides the best possible action
plan for the company development. In order to identify the company revenue Audi AG revenue
has increased £59.3 billion in 2016. Audi has also planning to make self driving cars which
contributes better environmental challenges in order to give the best potential work and target
market position. Moreover,
Competitive advantages in the Marketing strategy of Audi
Audi has a significant advantage in the competitive market over rivals BMW and
Mercedes-Benz (Gutruf and et.al., 2017). This is the reason they grab global market share apart
from that it also has been concludes better environment growth and target market share in the
organisation. Moreover, it will be given great impact on the organisation behaviour to gain better
environmental growth. It is further developing assisted and piloted system for other traffic
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situations. They always looking for the advance services which might be given better advantages
goals and services in order to accomplish the better objective goals.
Porter five force:
Barriers to entry- there are too many barriers or difficulties if any firm need to enter into the
industry. They could be related to that of time, cost and technological barriers other than this
governments or all countries are also having their own rules and regulations as well. So this
factor into Porters five force would be regarded to high having many types of barriers within.
Substitutes- this factor is low in automotive industry which could be regarded to as there no
substitutes that are available for them (Müller, Böhmländer and Utschick, 2018). so this could be
included to as very less high but if they are including the risk of price band then customer could
switch on to other transport vehicles.
Competitive rivalry- there is so many rivals who are included into market like that of Toyota or
BMW which are both having price and product competition with Audi. So this rivalry is very
high in this automotive industry.
Buyers- there are numerous buyers in market who are surely having number of choices form
within the market so they are chance that if they are not satisfied with the company with which
they are presently linked.
Supplier- there is also number of suppliers who are been selling and transporting the goods and
service to company. If Audi is not been satisfied with any one supplier then they would be
changing it very quickly.
SWOT analysis:
Strength
 Strong brand image.
 High luxurious quality products
 Luxurious product and services
Weaknesses
 Diversification and communication
 Low promotion
Opportunity
 Target emerging markets
 Innovate for mature markets
Threat
 Limited markets
 Competition
 Risk involvement
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RBV:
It is the another model through company can make their better services or target
marketing position in order to enhance the public image (Schuberth, Held and Brücklmaier,
Audi 2018). The resource based view is the model that sees resources as key to superior firm
performance if a resources exhibits, It helps company to adopt better services and matter of
growth. Research is the best techniques to make it includes two model
Tangible assets : it involves better tangible items which needs to be perfect tangible
assets includes machinery, land, equipment and capital. Tangible assets will be more productive
and effective process ( Audi AG and Volkswagen AG, 2018).
Intangible assets : Intangible assets of the company also helps to enhance the company
image such as capital, goodwill, trademark, intellectual property.
1.2 Develop and critically evaluate a range of strategic options available to Audi AG and ensure
the success of its strategy over the next 3-5 years.
Strategies and new business development plans have been collecting best option pan. It
gives better planning and growth in order to full fill the company objectives. It will be the best
option given to make planning successful and growth oriented (Homfeldt and et.al., 2017). There
are many strategic option available for the company in order to full fill the company objectives
and growth. It will be the more advancement and growth factor in order to accomplish the better
objectives and target market plans. In order to grab the business opportunities and growth market
share. Apart from that, it will be the better opportunity and growth. In order to enhance the best
opportunity and growth for the company enhancement. It will be mobile the growth factor and
better opportunity growth (Koch and et.al., 2018). It will be the more advancing and growth
opportunity growth. Apart from that, it will be the more advancing and growth fulfilment.
Option One: Status Quo: It is the another significant justification for growth for
maintaining the status in the market. It is the long term growth market which accomplish the
overall market. Moreover, it will be the more challenging for the company to sustain its stability
in the long term market share. This is the first strategic option for the company to ensure the
success of its strategy over the next 3-5 years (Kratzsch and et.al., 2016). It is the long lasting
process of making good task oriented. It is the long lasting effects which has been given in the
organisation. Moreover, it will be the more enlarging better productive task for the new
achievements.
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Option two: Down sizing: it is the another option of strategic option which might be
given better strategic position to Audi AG for its better opportunity task. Under this section or
process company can down size their activities and departments according to their requirement,
it gives better productive environment for future growth. It will be more enlarging and powerful
task oriented growth. Down sizing might be give better working environment to the company
development (Mocker and Fonstad, 2017).
Option three: Consolidation: it is the another type of strategic option which might be
given for better strategic target. Audi can combine the business activities with any big
organisation to make strategic and stability in the coming 3-4 years. It will be providing better
growth option for future development. Under which Audi AG can adopt reorganisation, New
partnerships, seeking alternative suppliers etc (Müller and et.al., 2018). it might be gives better
opportunity growth. Moreover, it will be given better opportunity and growth.
Option Four: Expansion: it is the another process or target market goals which helps to
regain the better opportunity and growth. It is the another major objectives and target market
goals. Along with that, it will be the more enlarging growth and major growth factors. Apart
from that expansion is the best option for the big organisation in order to meet the international
needs and wants of the customer (Reichel and Siegel, Audi Ag, 2016). Auto mobile companies
are highly influenced by the technology. To ensure the future goals, they need to acquire the best
product objectives goals. Growth market has better option for company to take its operational
market in further growth market. Further more opportunity growth is the better option to get the
better objective and target market goals.
Audi is the biggest German car manufacturer company which is highly motivated from
the activities. It is the another major goal oriented target market growth and better goal oriented
task. Besides, it is the long term process of making good skills and wants (Schuberth and et.al.,
2018). Company can also adopt the competitive advantage strategic option in order to
accomplish the future goals. Under which many options are included cost leadership,
differentiation, cost focus and differentiation and cost focus (Koch, Gauterin and Frey 2018).
Overall, strategic option must be followed by the company in order to meet the future objectives
goals. Further apart, it will be the more competitive advantage to invest on new digital
technologies. Short term moves are very much productive as compare to long term goals.
Another process of working which inspires the better option planning goals (Strasser, Audi Ag,
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2017). It will more explaining the better option planning goals. Furthermore, impact of strategic
planning gives better advancement growth for the company which gives better option planning
for the new development areas. Moreover, another objective of the organization is that to
promote the better option planning. It will be the more advancement and long lasting process.
Strategic planning differs from operational planning.
Planning is the essential part of the organisation which makes better environmental
growth. It makes better opportunity and growth for the highly development area. Planning
process is measured by the management departments keeping in view the vision, objective and
target of the company. Strategic planning is the source of making good task oriented work in
order to meet the company objectives and target market goals. This helps Audi AG what is
required to do in the future (Strasser, Audi Ag, 2017). It also makes the effective management
growth. Planning occurring the corporate level aimed as strategic planning while functional level
is called operational planning. Moreover, operational panning is the another highly required and
cost effective planning goals. Strategic planning concentrate on the long term objectives besides
operational planing goals to achieve short term goals and objectives. Operational planning used
to set the short term goals to achieve long term goals.
Strategic operational or business activities will help company to take better options for
planning making process. It will also help to give the better option planning and strategic market
goals. Audi AG needs to identify or needs to invest on Research & Development in order to take
the better opportunity and growth for the organisation (Koch and et.al., 2018). Moreover, it will
be the great impact on the behaviour. Apart from that, it will be the great implications or quality
management goals in order to accomplish the management objectives.
In order to get the excellent opportunity or target market goals, company requires to
considered best possible action plan. Such as market conditions, competitors position, current
technologies, market trends etc. further apart, company also needs to acquire better opportunity
and growth for better advancement growth (Homfeldt and et.al., 2017).
Audi AG has a wide working culture globally, it requires to making the better services or
car models in order to influence positive activities and target market goals. It also needs to gain
better opportunity growth to understand the better opportunity growth. Besides, it also needs to
acquire better opportunity and growth in order to acquire better environmental growth factor.
Audi is the leading luxurious brand which represent various target market growth which covers
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the various opportunity and growth (Mocker and Fonstad, 2017). Company also needs to acquire
digital technology to accomplish the technological or innovation needs of the potential
customers. It will be more challenging and influencing for the market as well. This overall
process helps to achieve the better target market goals. This overall process makes things perfect
and challenging.
Ansoff Matrix:
As company would be planning to expand its operations into more parts of world so they
could use and apply Ansoff matrix which is strategic planning tool providing to diversify market.
Market penetration- this is with the help of existing products and existing markets but putting
some up gradation or innovation into the products and service of company which Audi could use.
Market development- this is existing products with the new markets launching their goods into
some new marketplace or segments.
Product development- this is launching of new products into the existing markets only this also
can Audi put into their marketing strategies.
Diversification- this is whole new strategy with new products and new markets segments and
this is very much costly for the company to implement.
1.3 Applying a chosen methodology, select the most appropriate strategic option for the
organisation to implement. Critically discuss a range of implementation issues associated
with.
From the above all set methodologies which are included like that of downsizing, status
quo, expansion and consolidation the most appropriate strategic option which is available for
Audi could be that of expansion (Gutruf and et.al., 2017). At present it is having operation all
around the world but only having 11 production facilities in about 9 countries. So it would be
seen that company is increasing or expanding their production which would be helping company
into their increased in sales and revenue of Audi. Expanding the production of any business
would be very good and effective function for any company which is enabling them to spread out
their operation and production in other countries of world. As Audi is already having its
operations all around the world but they are lacking into their production units with only 11 on
worldwide level.
The demand of Audi and its cars are very much high as compared to others in this same
group of Volkswagen so it would be important for company to increase its production base in
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those parts (Blackwelder and et.al., 2016). The strategy of company should be based on
emerging nations of world that are helping company into their expansion and manufacturing of
vehicles on better way out. For this innovation and technology both are two important elements
both aiding up into more growth opportunities for company. They would be having emerging
new models of cars and vehicles that are increasing growth and development of profits into
market both new and old one. But for this it is essential for them to look up for what could be the
best place for setting up production units. After they have analysed the market which is correct
and having all kinds of facilities relating to that of raw materials, human resources and land or
funding as well would help company (Dremel, Wulf and Maier, 2017). This research is very
much required and is essential as per the parts of company to look up for their profits and
increasing sales revenue.
With the new plant of company this would be expanding the capacity of company to
produce more and more cars. From the discussing according to the market position company
needs to adopt better strategical position which makes better productive task. Besides, it will be
the more gratefully and task oriented process to fulfilling the better opportunity and growth. On
the other sides, it also helps to make the better objective task (Homfeldt and et.al., 2017).
Strategical option is very much productive and essential for the organisation in order to meet the
needs of organisation. It helps to embrace ambiguity and to avoid getting stuck on a single idea.
Among all other objectives company also needs to acquire the best possible action plan in order
to full fill the best strategic preposition (Homfeldt and et.al., 2017). There are many strategies
which created by company with their clients such as corporate governance, owner strategies,
growth strategies, international strategies, market and customer strategies. It is the more
challenging and growth factor.
Strategic planning is a process that is challenging in and of itself. Unfortunately,
implementing the strategic plan has presented its own set of highly complex issues. Audi EE
facing issues and complex process moreover, it will be given great impact on the business
activities while implementing the process making task. Besides, it will be the more challenging
and productive for the company while implementing the strategic position. It will be the more
challenging task oriented goal (Gutruf and et.al., 2017). It will be the more challenging and task
oriented goals which helps company to make more productive work.
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Company needs to make productive work in order to accomplish the process to
implement the process making target while addressing the issues company chosen various
components. It will be the more challenging and target market goals. Strategic planning is crucial
process of making good task oriented work to make better planning and resources. Audi AG
needs to analyse the market condition in order to identify the business opportunities. Besides, as
per the taken strategies company chosen market expansion to grab the better market opportunity
and growth. In order to expand the business production or services (Dremel, C., Wulf, J.,
Herterich, M.M., 2017). Moreover, there are many strategies through company can easily adopt
their strategic option such as are giving below:
Expansion through Concentration: it is the first level of business expansion through
concentration. In this strategical option company needs to focus on their target market customers,
customer function, customers group, technological alternatives etc. furthermore, it will also
include some major parts of the organisation which requires to be fulfilled.
Expansion through Diversification: this is the another approach of the target market
function. Diversification followed when company follows their aim and objective and company
expand their target market goals and objectives. It will be more challenging and target market
position. This is again of two types concentric diversification and conglomerate diversification.
Concentric diversification (Dremel, Wulf and Maier, 2017). Concentric diversification defines
the development of new product and services that are totally or highly demanding in the market.
For examples Audi AG produces new services or launching new technology in the context of
business growth. Apart from that, conglomerate diversification itself is the different area in
which company generate new different product line in the business activities.
Expansion through Integration: in this expansion strategy company combines their two
or more than two operational areas with no changes in the business growth. This changes
management called value chain. Under which vertical, horizontal, forwards and backward target
market goals. Through company takes its target market. Audi Needs to take the best
approachable strategies to grab the new product line (Dremel, Wulf and Maier, 2017). Audi
acquires the best approachable target goals in order to fulfil the best possible action plan.
Expansion through cooperation: it is the another process of expansion of business
growth. It is the mutual concern of combination of work which necessary to make demanding
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task. Besides, competitors are the role models with company planning to combine the business
activities. There are various strategies and options through company take combines the strategies
such as mergers, takeovers, joint ventures, strategic alliances etc. these are the options through
company expands their business operations into large level.
Expansion through internationalization: this is the strategy which has been already taken by
the Audi AG that to take its business behind the national market (Dremel, C., Wulf, J., Herterich,
M.M., 2017). This is the essential need of the company which is highly required by the
organisations to takeover the essential market goals. Besides, it is the overall advancing and best
approachable target goals which enhance the better opportunity and growth. Besides, it is the
more targeting customer orientation process of making good goals.
Issues facing by the company in implementing the strategic expansion strategies
No understanding the environment or focusing on results: it is the first challenging
position through company fails to adopt the better objective plans and activities. This can be
gives negative effects on the implementation process of strategic alliances. This factors fails to
implement the expansion strategies and profit making sources (Müller and et.al., 2018).
Partial commitments: Partial commitments by the employees in order to implement the
plans this gives negative impact on the overall objectives of business expansion strategic option.
This decrease the partial or overall commitment gaols of the better performance.
Zero coordination: this is the another reason of project failures through company cannot
implemented the proper plan and project objectives. It gives the low performance area and low
performance target goals (Dremel, Wulf and Maier, 2017).
Lack of plan understanding: Lack of understanding break the coordination among
subordinates and may occurs lack of misconception among employees. This is the reason
through company cannot achieve their business expansion growth.
CONCLUSION
From the basis of above section, it can be concluded that business strategic position plays
a very essential role in order to get the best position in the target market. Besides, it also helps to
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make the better environmental growth in terms of major competition. Present study based on
strategic position of Audi AG, it is the most power full and target market orientation which
makes better strategic position. Besides, it discussed in the study that strategic position is the
major effect full and target market goals and target market goals. Present study also discussed
different market position or options for the company advancement. It also explained some
different methodologies in order to gain the better objectives and target market goals. Overall, it
has been concludes that, strategic position is the best target market position through organisation
can easily get better opportunity and growth. Along with that, it will be more grateful and
productive nature of growth.
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REFERENCES
Books and Journals
Blackwelder, B. and et.al., 2016. The Volkswagen Scandal.
Blasinski, B. and Kaiser, M., Audi Ag, 2017. Method for Operating a Navigation System of a
Hybrid Motor Vehicle, and Hybrid Motor Vehicle. U.S. Patent Application 15/504,384.
Brenneis, O., Freyer, J. and Hantschke, C., 2016. Method for operating a safety system of a
motor vehicle and motor vehicle. U.S. Patent 9,254,802.
Dremel, C., Wulf, J., Herterich, M.M., 2017. How AUDI AG Established Big Data Analytics in
Its Digital Transformation. MIS Quarterly Executiv. 16(2).
Dremel, C., Wulf, J., Maier, A., 2017. Understanding the Value and Organizational Implications
of Big Data Analytics–The Case of AUDI AG.
Felgenhauer, M., Stocker, J. and Lienkamp, M., 2017, November. New Approach for
Architecture Design of High Variable Vehicle Portfolios. In ASME 2017 International
Mechanical Engineering Congress and Exposition (pp. V011T15A019-V011T15A019).
American Society of Mechanical Engineers.
Gutruf, P. and et.al., 2017. Charging strategy. U.S. Patent Application 15/345,706.
Homfeldt, F. and et.al., 2017. Identification and Generation of Innovative Ideas in the
Procurement of the Automotive Industry: The Case of AUDI AG. International Journal of
Innovation Management. 21(07). p.1750053.
Koch, T. and et.al., 2018. Method for controlling a rotation damper functioning according to the
gyroscopic principle. U.S. Patent Application 15/543,666.
Kratzsch, C. and et.al., 2016. Method for providing an operating strategy for a motor vehicle.
U.S. Patent 9,395,200.
Mocker, M. and Fonstad, N. O., 2017. How AUDI AG is Driving Toward the Sharing
Economy. MIS Quarterly Executive, 16(4).
Müller, M. and et.al., 2018. Machine Learning Based Prediction of Crash Severity Distributions
for Mitigation Strategies. Journal of Advances in Information Technology Vol, 9(1).
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Reichel, M. and Siegel, A., Audi Ag, 2016. Method for coordinating the operation of motor
vehicles that drive in fully automated mode. U.S. Patent 9,442,489.
Schuberth, S. and et.al., 2018. Method for operating a longitudinally guiding driver assistance
system of a motor vehicle and motor vehicle. U.S. Patent Application 15/543,963.
Strasser, R., Audi Ag, 2017. Method of operating a drive device and corresponding drive device.
U.S. Patent 9,762,162.
Müller, M., Böhmländer, D. and Utschick, W., 2018. Machine Learning Based Prediction of
Crash Severity Distributions for Mitigation Strategies. Journal of Advances in
Information Technology Vol.9(1).
Koch, T., Gauterin, F. and Frey, M., KARLSRUHER INSTITUTE fur TECHNOLOGIE and
Audi AG, 2018. Method for controlling a rotation damper functioning according to the
gyroscopic principle. U.S. Patent Application 15/543,666.
Schuberth, S., Held, R. and Brücklmaier, F., Audi AG, 2018. Method for operating a
longitudinally guiding driver assistance system of a motor vehicle and motor vehicle.
U.S. Patent Application 15/543.963.
Hemminger, H.S. and Zink, F., Audi AG and Volkswagen AG, 2018. Time-optimized particle
filter in hybrid vehicles. U.S. Patent Application 15/717. 250.
Hummel, S., Audi AG, 2018. Dual clutch transmission for a motor vehicle. U.S. Patent
Application 15/551. 968.
Winkelhake, U., 2018. Vision Digitised Automotive Industry 2030. In The Digital
Transformation of the Automotive Industry (pp. 77-126). Springer, Cham.
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APPENDIX
Figure 1: Ansoff Matrix
[Source: Reichel and Siegel, Audi, 2016]
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Figure 2: Current strategic position of Audi AG
[Source: Blackwelder and et.al., 2016]
Figure 3: Strategic options available
[Source: Blackwelder and et.al., 2016]
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Illustration 1: SWOT analysis
Source: Hummel, S., Audi AG, 2018