Strategy Briefing Paper Essay Example | Topics and Well Written Essays - 500 words - 1

Strategy Briefing Paper - Essay Example According to Nishino (1996), there is rapid expansion in the automobile industry around the world because of the growth in the demand of passenger vehicles and the overall increase in the demand for cheaper automobile components. Governments continue to make efforts in encouraging the growth of the industry in their countries. The demand for high quality vehicles is increasing because of the growth of the population of the middle class population in many countries making the purchase of a vehicle to become a sign of financial accomplishment (Goldberg 1995). As pointed by Berry, Levinsohn & Pakes (1995) the increase in the demand for automobile components has built pressure on automotive producing companies to look for alternatives of reducing the cost of production and embrace more economic methods of production. Through the process of globalisation of the world economy, governments and trade organisations continue to encourage lowering of tariffs and reduction in trade restrictions. This continues to make the industry more competitive as each international car manufacturing company has equal access to the market. Each company is therefore expanding its production to enhance their presence in the world (Orsato & Wells 2007). The focus is mostly on the supply of vehicles that meet the expectation of consumers and at the lowest costs. Apart from cost, the major focus is also on air pollution, energy efficiency and brand meaning (Kolk & Pinkse 2004). The company should come up with models that are more efficient in terms of fuel consumption and low emission of carbon dioxide to match the current demands of customers and enhance the reputation of its brands all over the world. The company has successfully been applying the culture of acquiring other players in the industry as a means of growing and expanding its operations. To enhance the rate of growth, the