Exploring corporate strategy Essay Example | Topics and Well Written Essays - 1500 words

Exploring corporate strategy - Essay Example This is true for all sectors of industry including the automobile industry. Bayerische Motoren Werke is an established name in the automobile industry and is not excluded from the both the challenges and the opportunities that the new world order has brought. The global automotive industry faces risks at the same time finds new opportunities. Plans to make use of these opportunities could become unstuck if the challenges of competition, supply chain management and the retail environment. The challenges do not just end there In addition they need to cope with new regulations, demands on cost reduction, managing capacity and inventory, and maintaining a control on healthcare and compensation costs.(Automotive). Looking at the opportunities that are available to the automobile industry, the economic development in the Asian region and in particular the more populated countries of China and India present an example of a definite one. The economic development and the large upwardly moving middle class present an opportunity that no automobile would want to miss. An added feature is that the local manufacturing of the region located in Japan and Korea that have offered stiff competition to the European car manufacturers are not expected to meet the growing demand in both quantity and quality from these expanding markets. (Michael, R. 2000. Automotive Industries). Another opportunity that may be considered by high end automobile manufacturers in existing markets is the customer willingness to spend money on automobiles that have trendy looks and powerful engines. (Kelly, K. 2005. The BUSINESS of PERFORMANCE). Globalisation has broken down the political barriers that were present in the past to expansion of markets. This has not diminished the requirement of maintaining the necessary political liaison in countries where the markets are attempted to be tapped or in expansions to manufacturing in existing markets. Location of manufacturing units of the