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CSC 402- Report on Electric Buses in Germany

   

Added on  2020-03-07

29 Pages5865 Words63 Views
Running head: AVASS ELECTRIC BUSES AND COACHES FOR GERMANY1Global Marketing1.0 IntroductionName:InstitutionExporting the Australian AVASS Electric Car for the German market

AVASS ELECTRIC BUSES AND COACHES FOR GERMANY2Executive SummaryThe reduction of tax on electric buses in Germany is a motivation to investors seeking to do business in Germany. Among Germany’s safety laws is proof of safety and free emissions car. This law applies across the EU and UK region. In fact, most countries in the world advocate for production of vehicles with clean air. This sustainability initiative is in line with the modern consumer needs, industry changes as well as government initiatives. The existing gap in public transport provides a business opportunity for AVASS an Australian electric bus manufacturer. It would be unfavorable for the brand to venture into the car business because the German consumer has an attachment with traditional car brands like BMW Mercedes and Volkswagen. This gives AVASS a reason to do engage in a unique business focus. The brand has years of experience in exclusive high quality buses in the Australian region. Supplying electric buses for Germany and its environs stirs up the industry with innovation of new brands. .Contents

AVASS ELECTRIC BUSES AND COACHES FOR GERMANY3Executive Summary.............................................................................................................21.0 Introduction....................................................................................................................42.0 Market Analysis.............................................................................................................42.1 Size of the market and growth rates..........................................................................62.2 Population..............................................................................................................83.0 Organizational Analysis...............................................................................................103.1 Customer Audit and Buyer Behavior.......................................................................123.2 AVASS 4 Ps..............................................................................................................133.3 Competitor Analysis................................................................................................143.4 Competitor Advantage of your product...................................................................153.5 Positioning...............................................................................................................154.0 Macro environment......................................................................................................174.1 Porter five forces model...........................................................................................184.2 Value Chain..............................................................................................................184.3 BCG Matrix.............................................................................................................195. SWOT Analysis (table with summary in main body)....................................................206.0 Conclusion...................................................................................................................22References..........................................................................................................................23

AVASS ELECTRIC BUSES AND COACHES FOR GERMANY4Global Marketing1.0 IntroductionThe introduction of an Australian brand in the market is poised to bring opportunities and challenges. The German government has a new plan called Energiewende, which seeks to replace, reduce the use of coal and nuclear products[ CITATION Dvd17 \l 1033 ]. Its annual release of 906 million tonnes of Co2 keeps increasing and vehicle emissions produce the highest carbon release. The international markets have opportunities and challenges for businesses today because of globalization. The development of technology within the global market is a major stimulant for organizational development. As brands search for opportunities in new regions, market entry strategies for new products and services emerge. The change in the business modelsredefines business undertakings. Most global markets have a major challenge of dealing with environmental issues[CITATION Kon12 \l 1033 ]. Although German technology has found a place in global markets as vehicle manufacturers in luxury vehicles namely BMW, Volkswagen and Mercedes, there is a gap in bus companies. In fact, one of Germany’s brand, BMW is penetrating the Asian markets successfully through the electric car model. Germany is a leading exporter of luxury vehicles but its production of electric cars is still lagging behind. Taking advantage of this gap, AVASS an Australian brand steps in with its electric car model set for the Germany market. 2.0 Market AnalysisThe business opportunity in the bus industry has benefits as well as challenges. Among these are the customer perception of the brand and brand identity. It also has challenges with its brand equity. A reduction of 50% on tax gives AVASS a cost reduction incentive for

AVASS ELECTRIC BUSES AND COACHES FOR GERMANY5business[ CITATION Boh14 \l 1033 ]. Although the company is strong in Australia, venturing into a market where there are giants in the industry has its challenge. In order to gain popularity and acceptance in Germany AVASS may need partnerships for the whole production process or vehicle parts. It takes multiple strategies to analyze its capability for this new venture. In international business, there are different modes of market entry including partnership with manufacturers in the region. Industry statistics reveal the promising market potential in the market. The decision to enter the European market starts with success at home[ CITATION Ren17 \l 1033 ]. Recent moves by Germany to import buses from Solaris Bus & Coach for parts of Germany is an indication of demand[ CITATION Eur17 \l 1033 ]. AVASS plans to manufacture all electric vehicles in segments of busses, cars, vans motorcycles and trucks. The brand has its battery-manufacturing unit, which makes its production of parts more affordable. In Europe, the brand already has a production plant in Turkey. Like its competitors BMW and Mercedes, AVASS has plants in China where the emerging market shows huge demand for sustainable brands. The brand targets government orders for large-scale supplies. Although the global market seems ready for the electric vehicle, consumer trends in Germany speak a different language[CITATION Pf16 \l 1033 ]. Germans have a connection with environment friendly brands. Although keen on recycling, most of its consumers in the vehicle industry prefer the high performing cars. These are fuel guzzlers whose maintenance is high. Electricity in the country is cheap compared to coal products. In contrast to China’s public charging systems, Germany has home charging units therefore; it gives AVASS confidence of infrastructural development. AVASS has a reputation of producing quality unlike its competitor

AVASS ELECTRIC BUSES AND COACHES FOR GERMANY6Volkswagen that has had to deal with ethical issues about accountability in greenhouse emission[CITATION Ewi16 \l 1033 ]. The fact that AVASS has six years’ experience in lithium-ion battery gives it an edge. Environment friendly products is one of the reasons for this adoption [CITATION Per17 \l 1033 ]. Since the brand is new in the market, partnership with reputable brands is appropriate. BMW chose to collaborate with Samsung as an entry plan into China[ CITATION BMW171 \l 1033 ]. . This is also the reason for other brands like Apple having production plants in regions outside their home. AVASS needs to look at advantages such as the low cost of operations because electrically charged vehicles do not need fuel services. Technology on overage costs lessand electric vehicles provide a sustainable resource. Learning from successful experiences in regions like China, AVASS is able to make estimates of its production process[ CITATION Shr17\l 1033 ]. Industry stakeholders in the automobile sector also agree to the green vehicles idea. Market intelligence point towards partnerships with local brands in order to succeed in the quest to create solutions[ CITATION DeM14 \l 1033 ]. The BMW/Samsung deal is a perfect example of how AVASS can reduce on the supply chain costs. Market share statistics also bring out Mercedes as a successful global brand that AVASS needs to watch (Winton, 2017). The targetmarket is medium income earners. Carmakers rush to take advantage of this growing demand proves the potential of this strategic move[ CITATION Har11 \l 1033 ]. Consumer interests often translate to sales but when it comes to disruptive technology, the innovator takes risks. Consumers drive technological changes in the global markets. The demand for energy efficient products in the region has support from government, NGO and the business community.

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