The writer of a paper "Managing In A Global Context: The Automotive Industry" discusses the various way in which globalization has influenced the industry in terms of sales volume impact or emerging markets social political and ethical issues (Laudon and Jane 2)…
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In 2008, Toyota became the world’s highest selling automobile company having surpassed market leader General Motors. Toyota’s intentional strategy is founded on manufacturing high vehicles that cut across various global market segments. They have high-end vehicles such as the Land Cruiser Prado, or the Lexus series, which are sold in the western world. They also have a range of cheap affordable cars targeting emerging markets more so in Africa or and Asia, which has encouraged low-income customers to opt for their products. Before 2008, General Motors had been in the lead but lost out to Toyota because they concentrate too much on high-end markets, which gave Toyota, and other low priced Asian company’s leeway to establish themselves. Honda and Kia have also copied Toyotas propensity for differentiating their market segments. For example, although they have high-end vehicles like the Honda CRV, mostly targeting wealthy European and American clients, the Ford Fit, which is a much smaller fuel-efficient car, is currently the most popular Japanese car brand (Calderwood). Ultimately, the Auto industry has been forced to make allowances for their various global client bases; this is evinced by the fact that some brands have adopted their manufacturing process specifically to fit some markets countries. For example, Toyota modeled the Lexus brand after the Harrier and based it in the USA. This is because many Americans were put off by the idea of driving a cheap Japanese car.
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2 Pages(500 words)Admission/Application Essay
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