Audi's Current Strategy: Business Development and Strategic Analysis

This report provides a comprehensive analysis of Audi's current business strategy, focusing on its approach to sustainability, digitalization, and market expansion. It examines the company's strategic initiatives, including the adoption of the Ansoff Matrix to explore market penetration, product development, and diversification strategies. The report assesses the strategic suitability, accessibility, and feasibility of Audi's plans, considering factors such as global warming, stakeholder interests, and resource allocation. It also explores potential partnerships, particularly in the music and sports industries, to enhance brand visibility and market reach. The analysis includes a resource audit and risk management assessment to evaluate the practicality and potential challenges of Audi's strategic decisions, offering insights into the company's efforts to maintain a competitive edge in the automotive industry and achieve its 2025 goals.

Running Head: AUDI’S CURRENT STRATEGY 1
Audi’s Current Strategy
Name
Course
Professor
Institution
Date

AUDI’S CURRENT STRATEGY 2
Businesses require strategies that are clear and distinct to successfully thrive. For this
reason, businesses should strive to have a well-defined strategy by evaluating the suitability i.e.
determining whether the strategies ranges with the external environment, acceptability and
feasibility i.e. identifying whether the organization has the capability of implementing the
strategies with the available resources in the business (McGregor, 1999).
Audi, an automobile manufacturer in Germany that produces, designs, markets and
distributes luxurious vehicles, is currently undergoing important changes due to sustainability,
urbanization and digitalization developments which will help in achieving the company’s
strategies by 2025 (Bolos, 2016).Basically, basis for coming up with the strategy was to
manufacture cars that are emission free or with low emissions for maintainable premium
mobility services, intelligent connections and more quality ideas and concepts.
Sustainability aims at improving and increasing technologies and ensuring the circular
economy principle (Filieri, 2014). Consequently, this will ensure good designing of products and
procurement processes to recycling of vehicles. This reduces the negative impacts of the vehicles
like pollution to the environment. Digitalization ensures provision of good quality vehicles all
time to their customers. According to Ansoff Matrix, business leaders should never stick to the
idea of running the business as usual for them to succeed and in making more profit (David,
2011).This ensures success in the business. Audi has several competitors and for them to be
outgoing, the company has to consider some issues. Therefore, they could come up with options
or strategies other automobile companies have not adopted to yield best results. For instance,
Audi Company should adopt this mindset for it to be more competitive in the market.

AUDI’S CURRENT STRATEGY 3
Audi Company should strive to target new markets or probably new areas of the present
market (Camillus, 2008). By doing this; they will put the company in a position where they can
comfortably sell more of their products to other people who had no idea about their products. To
achieve this, they could target several markets both within and outside the country. They could
conduct a PEST analysis to establish threats and opportunities in the different markets.
Secondly, the company could ensure market penetration by selling more of their same
products to the same consumers or markets (Coles, 2008). This could therefore be achieved
through; coming up with a new strategy of marketing that will encourage more customers to
choose their products and not the others, introducing other special offers for promotions,
increasing the activities of the sales force, identifying products that would require further or
future investment or which should be ignored and finally buying a competitor company.
Thirdly, the company should ensure development of the products by selling several and
different products of the company to the same customers (Muller, 2012).This could be achieved
by; production of different forms of the products, manufacturing related services and products
and improving the quality of services offered to customers.
Lastly, Audi could consider diversifying although it is considered a risky step to take
because there is usually a small range for applying existing skills and competence or for
obtaining or yielding economies of scale since one is selling totally different services and
products to different customers (Rugraff, 2012). Otherwise, an advantage for diversification is
that the company will have the opportunity to improve and expand the business.
Strategic suitability and trends

AUDI’S CURRENT STRATEGY 4
Global warming has become a great threat to both human beings and the environment at
large. This is because of its great effects on the environment e.g. climate change which
consequently affects human health in one way or another (McMichael, 1993). This is greatly
contributed by the fact that many people use private means to public means of transport to go
wherever they want to when most cars are not environmentally friendly. Awareness on human
and environmental effects of global warming has made people change their minds to start using
public means hence reducing the quantity of exhaust fumes being released into the environment.
Audi Company should take advantage of this and start manufacturing several vehicles to be used
in public transport often.
The Audi Company should consider partnering with companies or industries with more
fans. The music industry is well known and really appreciated by people globally (Baym).In fact,
the Audi Company should partner with famous artists known globally to advertise its products
and services. Many people will recognize the vehicles used in video clips used by famous artists
and will want to go for them (Bryman, 2015). Sports, football in particular, is also one industry
with several fans and Audi should probably consider using this as a chance to market and
advertise their products and services (Akpinar, 2009). This will be easier because Audi Company
has the capability, financially, to fully partner with the Premier League.

AUDI’S CURRENT STRATEGY 5
Usually, Audi vehicles and services are known to be expensive in Europe such that only
the high class individuals can comfortably afford.. Audi Company should take a step and
manufacture more public vehicles especially buses to be used and this will create a large market
for the company (Mangram, 2012). This will be more convenient to the company mainly because
they have the skilled/professional manpower to manufacture the public vehicles needed on the
roads.
Generally, Audi Company is known for manufacturing expensive cars. On the other
hand, several individuals cannot afford to buy the vehicles because of the economic imbalances
(Womack, 1990). Audi Company should reconsider manufacturing vehicles that can be afforded
by the middle class people too.
To crown it all, the option on partnership with Premier League is the best preferred
option with the least risk associated with it.
STRATEGIC ACCESSIBILITY AMONG STAKEHOLDERS

AUDI’S CURRENT STRATEGY 6
Assessment of options accessibility Risk Management
Stakehol
der
Intere
st
Pow
er
1st option 2nd
option
3rd option Ris
k
Likeliho
od
Mitigation
Managers High Low Accepta
ble with
low risks
Accepta
ble with
medium
risks
Increased
investigation
to
eliminate/red
uce risks
Hig
h
Improving
advertiseme
nts and
promotions
via social
media
Sharehol
der
High High Accepta
ble with
low risks
Accepta
ble with
high
risks
More study
in the field to
avoid loses
Hig
h
Termination
if
partnerships
fail
Existing
customer
High High Not
affected
by risks
Not
affected
by risks
Not affected
by risks
Lo
w
Can leave
business
due to low
legal ties
with
company
and low risk
New
customer
High High Not
affected
by risks
Not
affected
by risks
Not affected
by risks
Lo
w
The party is
not
compelled
to shop
products
According to the above table managers should come up with innovative promotion and
advertisement mechanisms through social media plat forms. Social media advertisement is a
productive upcoming trend that the company should exploit. The number of potential new
customers is high and the company should ensure they are persuaded to buy their products as
well as improve legal ties with existing customers to keep on purchasing. The company should
perform a comprehensive study on shareholders to avoid any loses to the company.
STRATEGIC FEASIBILITY

AUDI’S CURRENT STRATEGY 7
Type Resource
audit
Valuable? Unique? Scarce? Organizational
learning
Tangible Fifteen
factories
worldwide
Valuable
because of
competition
from plant
construction
Unique Rare but
valuable.
Open more
factories
worldwide.
Top quality
equipment
used in
production of
vehicles
Valuable
because of
the total cost
required to
build it
Though it is
valuable it is
not rare
because the
company
requires
equipment.
Not rare
though it is
valuable.
Ensure the
employees get
quality
equipment.
Operating
cash of
#7.5billion
and working
capital of
#11.6billion
Valuable
because it’s
used in
company
operations
It is unique
since it is
different
from others.
Not rare but
valuable.
Provide
necessary
budget.
Intangible Individuals
with good
knowledge
about
vehicles
Valuable
because its
needed by the
human
resource
sector
Resources
unique
Not rare
although
valuable
Train
employees gain
skills required
As observed from the above table, thencompany has to open up more factories in
countries with potential to reach many more customers. Technology is progressing as days go by
and the company also needs to ensure that they provide their employees with quality equipment
which will consequently improve product quality. For the company to expand its operations it
has to provide the necessary budget required. The company also has to improve the knowledge
and skills of employees by providing periodic trainings to update employees on new techniques
in the vehicle sector. Human resource is valuable and directly affects the quality of the
company’s product.

AUDI’S CURRENT STRATEGY 8
In conclusion, Audi Companies, being among the best automobile manufacturing
companies, it should still strive to offer the best services and give the best products to the
customers to enable them earn maximum profit. This can be achieved through formulating and
implementing strategies for the company to produce its best.
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AUDI’S CURRENT STRATEGY 9
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