As many other industries the car manufacturing industry has been hardly hit in the most countries by the international financial crisis and subsequent economic slowdown. Several reasons of the credit crunch have also been the trigger for turbulences in the car industry, especially in Europe and the United States of America. Years of cheap and extensive opportunities to finance new cars (low interest rates and negligent credit approvals) have decoupled the economic growth from the car sales and have lead to extensive excess in demand.
Based on major theories in strategic management (e.g. Porter's five forces), this works examines the reasons for car manufactures problems during the crisis, strategic implications and measures to enable a future growth story.
Table of Contents
I. Market Review
1. The Financial Crisis and its Impact on the Car Manufacturing Industry
2. Regional Different Implications on Car Manufactures in 2009
a. EU27
b. North America
c. Asia
II. Changes in the Car Manufacturing Industry
1. Market Globalisation Drivers
2. Competitive Globalisation Drivers
3. Government Globalization Drivers
4. Cost Globalization Drivers
5. Résumé
6. Strategic Implications
III. Daimler AG and the Characteristics of the German Car Manufacturing Market
1. Daimler AG, a German Car Manufacturer
2. Situation of Daimler’s Domestic Market Germany
a. Competitive Advantage of the Domestic Market
b. Rivalry and Competitive Situation in the German Market
c. Major Customer Trends
3. Effects of the Recession on Daimler AG’s Competitiveness
a. Resources and Capabilities
b. SWOT Analysis and Evaluation of Daimler AG’s Competitive Situation
IV. Reactions and Strategic directions at Daimler AG
1. Reactions on the Crisis by Daimler AG
2. Recommendations
Objectives and Scope
This work aims to analyze the impact of the global economic downturn on the car manufacturing industry, with a specific focus on the strategic challenges faced by Daimler AG within the German market context.
- Analysis of the global financial crisis and its effect on car manufacturing
- Application of the "drivers of globalisation" framework to the industry
- Evaluation of Daimler AG's internal resources and competitive position
- Strategic assessment of internationalization and transnational management
- Recommendations for navigating future market requirements
Excerpt from the Book
1. The Financial Crisis and its Impact on the Car Manufacturing Industry
As many other industries the car manufacturing industry has been hardly hit in the most countries by the international financial crisis and subsequent economic slowdown. Several reasons of the credit crunch have also been the trigger for turbulences in the car industry, especially in Europe and the United States of America. Years of cheap and extensive opportunities to finance new cars (low interest rates and negligent credit approvals) have decoupled the economic growth from the car sales and have lead to extensive excess in demand (Alixpartners, 2009). European and American car manufacturers thus have not executed the necessary reduction in production capacity taking into account utilization rates of under 85% (Figure 1).
Summary of Chapters
I. Market Review: Provides an overview of the global financial crisis and its varying impacts on regional car production markets.
II. Changes in the Car Manufacturing Industry: Identifies market, competitive, government, and cost-related drivers influencing industry globalization.
III. Daimler AG and the Characteristics of the German Car Manufacturing Market: Analyzes the specific competitive advantages and challenges of the German market for Daimler AG using porterian frameworks.
IV. Reactions and Strategic directions at Daimler AG: Details the firm's crisis responses and proposes strategic recommendations for future growth.
Keywords
Strategic Management, Car Manufacturing, Financial Crisis, Globalisation Drivers, Daimler AG, German Market, Competitive Advantage, Transnational Strategy, Resource-Based View, SWOT Analysis, Fuel Efficiency, Automotive Industry, Production Capacity, Market Trends
Frequently Asked Questions
What is the primary focus of this research?
The research examines the impact of the 2008-2009 global financial crisis on the car manufacturing industry and how global players like Daimler AG adapt their strategies.
What are the central themes of the work?
Central themes include global market shifts, the impact of the credit crunch on vehicle demand, transnational corporate strategy, and the specific competitive landscape of the German automotive sector.
What is the main research objective?
The objective is to identify how economic downturns act as drivers for globalization and to determine appropriate strategic responses for established automotive firms.
Which scientific methods are employed?
The study utilizes George Yip's "drivers of globalisation" framework, Porter's "Diamond Model" and "Five Forces" analysis, and the resource-based view (RBV) of the firm.
What does the main body cover?
It covers the global regional market review, the analysis of globalization drivers, an in-depth case study of Daimler AG's internal environment, and recommendations for strategic adjustments.
Which keywords define the work?
Key terms include Strategic Management, Globalisation, Daimler AG, Competitive Advantage, Financial Crisis, and Transnational Strategy.
How does the crisis influence production capacity?
The crisis led to severe overcapacity in Europe and the US, forcing manufacturers to implement short-time work, factory closures, and strategic shifts in production locations.
What specific advice is given to Daimler AG?
The author recommends a transnational strategy that leverages complementary strategic alliances to improve economies of scale while maintaining a distinct "Made in Germany" quality image through a differentiation strategy.
- Quote paper
- Nils Peters (Author), 2010, The impact of the global downturn on the car manufacturing industry, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/179415
