Subaru Company Analysis - Case Study Example

Company name (optional) Subaru Subaru is a Japanese brand used by Fuji Heavy Industries, the Hong Kong translation of Subaru cars, Fuji Heavy Industries, the predecessor is the main manufacturer of military aircraft during World War Nakajima Aircraft Company, in 2012 ranked first in the global car manufacturer 22 [1], the company has always manufactured cars advertised boxer engine and all-wheel drive and other features. The company is headquartered in Ebisu, Tokyo, Japan. The first Subaru car was introduced in the market in 1954. The company is popular due to its boxer engine in most of its vehicles that are above 1500cc (Imamura, 2011). 1. ^ 请参看（英文）OICA: World Motor Vehicle Production。 Address (optional) Head office Ebisu Subaru Bldg. 1-20-8, Ebisu, Shibuya-ku, Tokyo 150-8554 Main Plant 1-1, Subaru-cho, Ota-shi, Gunma 373-8555 http://www.fhi.co.jp/english/outline/inoutline/domestic/ Industry Automobile manufacturing Form of ownership, e.g. publicly-listed; family-owned Automotive division of Fuji Heavy Industries. Nationality, e.g. Australian-owned Japan Fuji Heavy Industries owned Total number of employees currently employed 12847 Total number of employees currently employed in Japan http://www.fhi.co.jp/english/outline/inoutline/domestic/ http://www.fhi.co.jp/english/index.html The market/region/city chosen Nov. 19 Fuji Heavy Industries Ltd. President Yasuyuki Yoshinaga has failed to build a factory in China. GM, Nissan, Honda, Kia, Toyota, Mazda, Hyundai, Ford, all of These manufacturers have factories in China, only Subaru still import to china Instead of manufacture in china. The maker of Subaru cars, is the only major Japanese auto brand without a plant in the world’s largest vehicle market China. And for Subaru Manufacturing locally is crucial because import taxes of 25 percent make cars built abroad uncompetitive. China is Subaru’s third largest market, after the U.S. and Japan, but its growth in the country has slowed. The company sold 57,198 Subaru cars in China last year This Propose Subaru Establish plant in northern China, North China region is densely populated, rich in coal and iron resources, as well as gold, molybdenum, bauxite, and a number of mineral resources [1]. China's major grain, cotton, oil-producing areas. North China include: Beijing, Tianjin, Hebei, Shanxi and Inner Mongolia Autonomous Region Central namely Xilin Gol League, Wulanchabu, Hohhot, Baotou and other four leagues (cities). Politics in general are included on the entire North China Inner Mongolia. In these Province, Hebei is the best choice Hebei has developed coal, iron and steel, ceramics, electricity, textiles, petroleum, ports, automotive, photovoltaic industry, the pharmaceutical industry. Hebei steel output ranks first in the country. Re-establishment of Hebei Iron and Steel Group, China's largest steel producers. Its Huabei Oilfield is one of the major oil producing areas China. Great Wall Motor and Yingli PV industry are located in Baoding.  华北地区发现丰富矿产资源. 中国铝材信息网. Company Analysis China benefits a lot from its advanced worldwide economic integration, and their well-advanced technology, to make them the best foreign country for china to establish their operations in. This is the perfect time for Delta to enter into the Chinese market and grow their expansion plans. With a good Marketing strategy, cost benefit analysis and proper market segmentation the company will surely succeed. The company has chosen a low cost strategy due to the market segment it has chosen. It is however important to note that low cost does not mean low price, however it is strategic management policy that embraces low price in the context of business practice. The company should make a feasible and well calculated move of entering the market first with good quality products for the low end markets, as they take advantage of their late entry as they wait for an opportunity that will make them expand. The company should come up with a brand that they could keep on upgrading as they continue to establish presence in the market. The company should embrace variation that will help it to provide their market segment with a unique and very valuable car model. They should explore their variation business model which makes the “price premiums” greater and better than the additional cost that comes as a result of variation. They should focus on a quality product in terms of its performance and appearance; good sales system of delivery, by giving good after sales service including provision of spare parts; and having a good marketing channels that give good foundation for establishing a “variation business mode” (Drucker, 2010, p. 43). Apart from developing a good brand and committing a lot of funds in areas of research and development, the company should focus on diffusing their technology with that of their mother country, to effectively achieve the low cost strategy. In order to achieve competitive advantage, the company should research adequately in areas of production factor, the organization structure, the competition in the industry, and the organizations strategy. This together with the study on related industries that will support their existence and the demand conditions in China will help the company successfully go through four phases. The four phases include; production factor face, innovation face, investment phase and the wealth driven phase. If the phases are well integrated with research and development and a good organization structure will see a company be in a position to fight any competition being experienced in the industry, whether they are new or not. Delta Company’s entrance into the Chinese market at a later stage is an advantage they can exploit. This is so because the company will be able to learn from the failures and successes of the other automotive companies both local and international. This will help them not to repeat the mistakes committed by others and align their strategy towards competing effectively with the rest. This will also help the company to reduce costs involved in doing research as they can depend on research done by other companies (Drucker, 2010, p. 43). A company cannot succeed without competent workers; therefore the Human resource department should be able to link up with all the business units in the company to make sure they have a well skilled and experienced workforce. Marketing as a department should be able to provide a mix of employees all over the world. They should use employees from China who understand the market segments better at the same time employees from the mother country that understand the modelled cars. The marketing manager should then try to achieve correlation between the two, do extensive training programs and produce a highly effective workforce. http://www.bloomberg.com/news/articles/2012-11-18/subaru-trumps-toyota-as-market-rewards-china-shutout Company Background Subaru is the automobile manufacturing division of Japanese transportation conglomerate Fuji Heavy Industries (FHI), the twenty-second biggest automaker by production worldwide in 2012. [1]. Fuji Heavy Industries initially started as an Aircraft Research Laboratory in 1915. The company underwent reorganization at different stages and it was a major aircraft manufacturer for Japan in World War II. In the early 1950s the company was divided into 12 smaller corporations in line with the corporate credit rearrangement with the government. This led to the establishment of Subaru in 1954 and its first car was named Subaru 1500. Subaru is known for its use of the boxer engine layout in most of its vehicles above 1500 cc as well as its use of the Symmetrical All Wheel Drive drive-train layout since 1972. The flat/boxer engine and all-wheel-drive became standard equipment for mid-size and smaller cars in most international markets by 1996. Fuji Heavy Industries, the parent company of Subaru, is currently in a partial partnership with Toyota Motor Corporation, which owns 16.5% of FHI. [2] General description, eg. Name, geographical location, and stage of economic development. Mainland China China’s market size in cars is expanding rapidly as a result of China’s advancing economic fortunes. The residents’ purchasing power has also gone up and the government has loosened their control policy that has seen a reduction in the “administrative barriers”. The government has also cancelled the restriction on the number of manufactures of cars the country can accommodate, thus promoting competition. Subaru will face competition from both the local and foreign industries. Because of their financial capacity and the fact that they have been in China for a long time (Rothaermel, 2011 p.56). (Watanabe 2014, p. 43). In addition, the company also plays an essential role in assembling different cars hence an added advantage in the market. in the case of Volkswagen, the company is not only a manufacturer of auto parts in the Chinese market, but also plays a role in assembling cars and in the manufacture of different car brands in China. This means that these companies enjoy large market shares and customer bases in China and it is therefore important for Subaru to institute measure that will help in the improvement of market share and customer base in China. An entry into the Chinese market through a joint venture with established automobile manufacturers or need help from parent company Toyota (Anderson 2012, p. 100). The company intends to counter competition from local automotive companies by entering into a joint venture with one of the local companies, for some car models. This is a good strategy for the company will be maintaining its foreign image but at the same time localizing their production (David, 2009 p. 34). The innovativeness of the company will also be useful in terms of dealing with competition. This is because the Chinese market encourages innovations. The innovations may also lead to the development of new products that satisfies the customers. China is considered as one of the greatest growing economy and hence the suitability of the market to the company. (b) Key issues which may influence the proposed expansion or new business initiative, including: China Rejection China didn’t think that Fuji Heavy is independently managed from Toyota. A third partnership in the country for Toyota would have exceeded regulatory limits. The China rejection was “disastrous for Subaru and we had a very negative view at the time,” said Masatoshi Nishimoto, an analyst with IHS Automotive in Tokyo. “Their misfortune turned into a stroke of good luck after the anti-Japan protests. But in the long term, Subaru can’t do without China.” Territorial Dispute The decades-old territorial dispute, involving a group of islands called Senkaku in Japan and Diaoyu in China, was reignited in April, when then-Tokyo Governor Shintaro Ishihara, a longtime critic of China, proposed buying the territories. Though anti-Japan protests have subsided in China, tensions continue to simmer. The territorial disputes between China and Japan may end up affecting the operations of the company. Escalation of tension between the two countries may have a negative impact on the new initiative as it will be difficult for the Japanese company to be established in China. Japan’s main opposition leader, Shinzo Abe, said Nov. 15 he will boost control of the islands should his Liberal Democratic Party win next month’s elections. China filed a formal diplomatic protest after Abe met with the Dalai Lama Nov. 13 and called for democracy in Tibet. Polls show the LDP may win the national vote, returning Abe to the premiership. Fuji Heavy may need to be more aggressive in expanding its manufacturing capacity in North America to capitalize on the growing demand for its vehicles, said Takeshi Miyao, an analyst at market researcher Carnorama Japan. U.S. Expansion By 2014, the automaker plans to boost capacity at its plant in Lafayette, Indiana, by 11 percent to 300,000 cars annually and is considering further expansion in the U.S. Fuji Heavy may sell 400,000 vehicles in the U.S. in fiscal 2015, exceeding an earlier forecast for 380,000, Takeshi Tachimori, chief of Fuji Heavy’s U.S. unit, said in June. In Japan, the company has said it will increase production at its main domestic plant in Gunma Prefecture by 20 percent to 180,000 vehicles by the summer of 2013. Government subsidies helped boost domestic sales by 30 percent to 47,528 vehicles for the six months ended September, led by the Legacy and Impreza, according to the company. Despite investors rewarding Fuji Heavy for its minnow status in China, Fuji Heavy chief Yoshinaga says the country’s potential is just too big to ignore. “China is the largest vehicle market in the world and will continue to grow,” Yoshinaga said last month at a press briefing. “When we consider local production, besides the U.S., China is the place. This plan hasn’t changed.” (i) PESTLE analysis (No more than two pages. Address only issues relevant to the project NEXT PLC PESTLE ANALYSIS http://www.lucintel.com/country-research.aspx https://www.chinaabout.net/pestle-analysis-chinese-market-e-commerce-sector/ http://123writing.com/sample_description.php?sample_id=17 Political: China set to focus on supporting domestic brands and creating more appeal for domestic brands, this will mean naturally less support for exports and overseas brands Single child policy means that consumers aged between 18 and 30 are likely to have savings from past generations passed down to them. China is a single party state and it is governed by the communist party of China. The political environment in China is currently stable (Saich, 2011). This promotes the growth and development of the companies and it may impact positively on the growth of Subaru. Economical: China has had the highest average yearly economic growth rate between 1980 and 2004 of 9.8% In 2011 unit prices increased as a result of increased raw material and labour costs During the global recession of 2008 and 2009, China recorded GDP growth of 9.6% and 9.2% respectively According to the Chinese central government GDP growth in 2012 is expected to slow 7.5%. Due to the strong confidence in China’s long term economic prospects, foreign direct investment in retailing continues to increase in China. By the end of August 2009, the total number of foreign investment companies reached 2,400, and the total investment capital in China surpassed US$4.8 billion. The country has a huge labour market which has a labour force of 815.3 Million people. This means that the company will not face difficulties in obtaining labour. 46.9% of the labour force is based on industries which will b beneficial to the company. The labour is also cheap which means that the company will be able to reduce the cost of production. The industrial production growth rate at the country is 8.1% which is an indication that the economy supports the growth and development of industries. Social: Shopping has become a leisure pursuit for many middle class and affluent Chinese consumers. In particular multi-format retail Centre are very popular. Purpose built retail parks and mega malls are being set up by the government to encourage consumers to spend as they begin to see shopping as a leisure pursuit. The consumer behaviours of the people in China will have a positive impact on the purchase of the products of the company. This is also considering that the Chinese people are passionate about cars. The employees from other countries should however be familiar with the Chinese culture. A number of public holidays and festivals provide great opportunities for gift giving. Technological: Sina Micro-blogging site is widely considered as one of the biggest online marketing platforms in China and is reportedly a bigger phenomenon than Twitter in the US China has the highest number of internet users globally at 454 million Taobao a multi-branded online shopping mall accounts for 80% of China's total e-commerce trade. China has had problems with Google which is the largest search engine which means that the company should be prepared to rely on the other search engines in china while using the internet. The company will have to avoid the use of Gmail when transacting business dues to the dispute with Google. The telephone system in China is among the leading in the world. The country also has one of the fastest supercomputers in the world known as Tianhe-1A. The technological environment therefore supports the growth and development of companies. (ii) Market analysis Current size and potential http://foresightinvestor.com/articles/75947-china-s-automotive-potential In 2005, about six million cars were sold in China. In 2012, this number increased to 19 million, making China the largest automobile market in the world. During this period the annual compound growth rate of 18.1%. Although do not expect this growth to continue, there is no doubt that China will remain the world's largest auto market in the coming years. In this article, I will briefly history, overview of the current market, the effect of current policies, investment is expected and potential profitable. In 2006, China had surpassed Japan in terms of the market for cars and by 2009; it had surpassed the United States of America to become the largest car market in the world. This is an indication that the car market in the country is experiencing a lot of demand. The current market Primary luxury brands such as Volkswagen, Land Rover and Jaguar parts suppliers in the government-led anti-monopoly investigation has led to some tension and increasing investors' hopes, luxury cars will become more affordable. When asked about these current events, international car manufacturers declined to comment. Dealers will also benefit from these lower prices, because customers are more likely to return to the dealer service, and profitability of these services will remain unchanged. The government has also introduced some policies which will require the foreign car manufactures to reveal their trade secrets when it come to the electric cars. This has not gone well with most of the companies and some have postponed their processes of manufacturing the electric cars. However, despite the challenges, the market is one of the best in the world and hence the need for investing in it. International brands continue to launch new products customized for the Chinese market, especially for low-cost products. This resulted in domestic sales for the domestic automobile manufacturers increasingly competitive. Efforts by the government to increase new energy vehicles (NEV) the amount so far in vain, because they reflect only 0.2% of the total private car sales, despite heavy government subsidies. Consumer profile (market segmentation and consumer values) and buying behaviour (product-use pattern, product feature/brand preferences, shopping behaviour) Chinese customers As a high context culture Chinese consumers when deciding which car to buy, they rely on four factors, namely, friends and colleagues (49%), family (64%), the manufacturer's Web site (53%) and social media (64%). The perceived customer value is an important aspect that the company has to consider in the process of ensuring that it satisfies the need of the customers in China. High quality cars which do not emit much smoke and consume less fuel is an important value among the Chinese customers. The social media should be considered as a marketing tool as it plays an essential role in influencing the customer behaviours when it comes to the purchase of cars in China. Chinese consumers are less likely to walk into a dealership. They have a more calculation method, which involves these four factors. Chinese clients are more likely to rely on them when they decide to buy the information found on the Internet. In 2010, after 33% of China's customers purchase products off the assembly line, first in line to find information about the product you want. In 2011, 43 percent of Chinese customers in this type of customer behavior. Can assume a similar method is used for a car. Despite the preference for geographic, demographic and vehicles, Chinese customers have one thing in common: they expect a personalized customer experience and satisfaction. The problem is caused by a variety of experiences, such as purchase behavior need to pay a huge country, and its enormous influence population distribution channels, and China has made considerable complexity. Marketing infrastructure (distribution channel, advertising media and dominant promotion approaches, pricing strategy) Marketing Infrastructure. The main areas of focus while studying market infrastructure include, the distribution channels the company will use, the mode of advertising, the dominant promotion strategies and the pricing strategy. Distribution Channel. A distribution channel helps a company to bridge a gap that exists between producer of a product and the consumer, whether the two individuals are in the same location or different regions. It is very effective and efficient in ensuring that the customer gets the product in a safe and sound manner. Delta Company can choose to deal with the clients directly, thus eliminating the need for middlemen, who in this case represent the retailer and wholesaler. It might also prove cumbersome for the company to perform all the transactional, logistic and facilitating functions; hence need to do a market research that will offer the best channel of distribution to choose (Cameron, 2012, p.46.) Subaru has various options it can choose from. The direct distribution channel can be employed, because they will definitely have showrooms where the customers can come to view the cars and choose to buy them, hence the company will be dealing directly with the consumer. The company can also partner with Chinese distributors who understand the market best hence they will act as wholesalers or retailers. Choosing an appropriate distribution channel is very important, because it helps in cutting distribution costs and also creates a good relationship with a client. Dealing with a client on one-to –one basis helps the Company in achieving customer integration (Drucker, 2010, p. 43). The company can succeed in company integration by allowing the customer to explain his needs and the mode of a car he needs and they can include this during the manufacturing process to ensure that the clients’ needs are completely met. It also helps in Reutilization, which enables the right product to be found in a place where the customer expects to find it such as showrooms. These help the customer to compare the car models and their prices and what payment mode he will use to pay for the product. This process is advantageous both to the consumer and producer because the producer will be able to know what to produce, when to produce and how many he needs to produce. The selection of the distribution channel has to consider the entire market in China. This is considering that China has a vast geographical area and reaching all the customers may require a lot of resources. Advertising media. While addressing the issue of advertising, the company should be very careful due to the existence of language barrier between China and America their mother company. China has the most complicated and challenged media markets in the world, because of their population size, diversity, marketers who are savvy and their complex structures. The advertising media used determines the number of people who can obtain information about the products being advertised. Cost is also an important aspect that has to be considered depending on the size of the market and the advertisement media. The country has multiple, fragmented, complex and the most evolving markets, which gives the marketers many advertising platforms. Digital generation has boosted advertising a great deal because of the consumers’ easy access to Internet through either a phone or a computer. Delta Company can take advantage of that and use the digital platform to advertise their products through social network such as face book, Twitter, YouTube and Instagram. (Kotter, 2012, p. 38). The other major platforms they can use include events and sponsorship Chinese market capability of involving themselves in hyper fragmentation will make Delta’s marketing group have an easy time for they will be offered with numerous choices, during formulation of media plans. The company should take advantage of this, unlike in their mother country where they had very few media choices. However this can prove to be a big challenge, thus need to come up with a strategic plan that will help them in evaluating the many choices while creating media effectiveness that will help them generate big returns (Cameron, 2012, p.46.) Delta Company should take advantage of the improvement in “China’s advertising market” and come up with a mode of advertising that will suit them. The company needs to take advantage of the rising economic fortunes of the Chinese citizens, the vast number of retail distributors and many television stations around to succeed in promoting their brand. The strategy should also put in mind the media inflation on the rise, which will shoot their advertisement costs, hence need to do early budgeting. They should however use television stations like CCTV, Shanghai Media group and Beijing TV that are very popular especially to the middle class economy (Drucker, 2010, p. 43). The company can also familiarize itself with the new rules and regulation governing media advertisements to avoid being caught on the wrong side of the law. With an Internet population of over 420 million citizens, this is a very successful medium to use in boosting their sales. With all these strategies the company will definitely succeed in creating awareness of their car models in China. Pricing strategy. Pricing strategy will either break or ruin the company’s plans of establishing presence in the Chinese market. The Chinese market poses a big challenge to most western companies. Their economy has grown in two digits despite the global depression in European countries. The country is poised to overtake America by 2020 hence it remains an important engine for the growth of the world’s economy. (Drucker, 2010, p. 43).This factor is very important for Delta to consider while coming up with its pricing strategy The rising incomes of the people from the coastal region where the company intends to establish its plant should also be considered. These customers have embraced consumer spending and have a clear open business culture and environment. This means that as much as they do not mind buying a car, they do a lot of window-shopping not only for price but also the quality the car offers. The company can choose to price their cars lower that there competitors but at the same time not ignore the quality aspect. This will make them a market leader within a certain period of time Competition is also another factor to consider while addressing the pricing strategy. Most automotive companies reside in China thus there is needed for Delta to carry out research both on the quality of cars the competitors sell and their pricing strategy. They can then integrate these with their own plans and the needs of the consumer to come up with a good price for the different car models. Having identified the market and location, it should not be tasking for the company to arrive at the best pricing strategy. (iii) Analysis of competition Competitor’s product/service (brand equity, features, package) Subaru Model: Impreza,Liberty,Outback and XV Competitors Subaru Impreza stands more or less alone in the segment as an economy car with standard all-wheel drive. The Mazda 3 has been redesigned for 2014, and it's a real looker with a lot of available technology and one of the sportiest driving feels available. The Kia costs less, but offers more options in a sleeker package with better fuel economy. The VW Golf offer TDI clean-diesel models, which may appeal to some of Subaru's more earth-conscious shoppers. Other alternatives include the Honda Civic, Toyota Corolla, Cruze and Ford Focus. Competitors Honda Accord Euro Kia Optima Mazda 6 Automotive experts agree that the redesigned 2015 Subaru Outback is a one-of-a-kind vehicle with generous passenger and cargo space, as well as superb all-wheel drive traction. Competitors The Toyota Prius vhybrid wagon gets much higher fuel economy estimates than the Outback, and critics agree that it has plenty of passenger and cargo space. Auto writers especially like the Prius v’s rear seats, which are quite large and can recline and slide backward and forward. The Mazda CX-5’s sporty handling and excellent fuel economy earn praise from the automotive press. They also like this crossover SUV’s spacious rear seats and contemporary interior styling. The CX-5 is also available with all-wheel drive. Competitor’s price, distribution channel, promotion methods Most of the automotives that are produced in China are mainly sold in China. The local companies have a market share of 44.3%. However, the major competitor in the market is Toyota. This means that the company has to develop strategies of becoming competitive in the market. Toyota has increased its competitiveness in the market through innovations. The company is the only manufacturer of hybrid vehicles. The promotional methods that are used by Toyota involve the use of the internet, newspapers as well as the television (Armstrong, et al, 2014). On the other hand, the cars manufactured by Toyota are affordable to most of the customers. However, the prices of the cars vary depending on the model. Toyota also utilizes the 4S car shops during the promotion and sale of its cars. Specific Actions to Implement New International Expansion/Business Initiatives (a) Nature of the expansion / business initiatives, eg. Marketing objectives, Business initiatives, From Manufacturing then imports from Japan to China, change to production in China. Large scale production can also be carried out in China after the company has established a large market share. (b) Product/service, standardisation or adaptation; Standardization, all vehicles should be equipped with a boxer engine and all-wheel-drive system. The traditional manufacturing process of Subaru will be maintained as well as all the trade secrets. This is for the purposes of ensuring that the customers are able to enjoy the original products from the company. (c) Promotion mix, e.g. advertising, sales promotion, personal selling; The promotional mix plays an important role in creating awareness about the products of a company (Eagle, et al, 2012). Subaru will be involved actively in the advertisement of its cars in order to create awareness among the customers. The internet will be used in most cases due to the high number of people who are able to access the internet in China. Sales promotion will be used during the holiday seasons so as to encourage more customers to purchase the products of the company. This is considering that most people in China usually purchase cars as presents during the holiday season. Show rooms will also be established in different parts of the country for the purposes of promoting the products of the company. (d) Distribution channel; The distribution channel plays an essential role in ensuring that the products reach the end users. In the Chinese market, most of the companies use the 4S car shops for the distribution of their cars. However, the company will be involved in direct selling. This will involve dealing directly with the customers in the market. The customers will be allowed to order directly from the company or visit the show rooms that will be established by the company. Middlemen will not be involved during the distribution process. This is because middlemen have a negative impact on the profitability of the company. (e) Market entry and penetration strategies; Market entry strategy involves planned method of delivering the goods and services to the customers in the new market (Jobber & Ellis-Chadwick, 2012). In the Chinese car industry, the joint venture is the most popular method of market entry. The company will also utilize joint venture for the purposes of ensuring the Chinese market. On the other hand, the company will use low pricing for the purposes of penetrating the market. This will be useful to the company to gain a market share and customer loyalty. However, the company will operate on its own after it has stabilized in the market and its products are popular with the customers. (f) Profitability estimation; and The estimation of profitability will play an essential role in terms of determine the success of the company. The sales and the overall cost incurred during the production process will be used for estimating the profits. Other factors that will be considered during the estimation of the profits will be taxes that the company has to pay to the government. It is important to note that the profit estimation will be used to determine the areas that the company needs to improve in order to increase its profits. Although the industry is competitive, the company intends to make profits. (g) Resource and support required Different resources will e required by the company in order to meet its goals and objectives. The company has to employ a visionary leader to guide the company in its operations. Experts in different fields of automotive and mechanical engineering will also be required. Ordinary employees have to be hired for carrying out different task during production. Financial resources will be required in order to finance different activities including research and development. The combination of human and financial resources will be useful in enabling the company to meet its goals and objectives. Different suppliers will also have to be contracted by the company to ensure a steady supply of raw materials. The support from the financial institutions will also enhance the growth and development of the company. After being unveiled last year, both the Subaru BRZ and the Toyota GT-86 have now officially started production at Subaru’s Gunma factory in Ota-city, Japan. The two rear-wheel drive coupe models were developed as a result of an agreement that started in October 2005. Both models are powered by the same 2.0-liter horizontally-opposed boxer engine that delivers a total of 200 HP and 151 lb-ft torque. The 86 is a series of grand tourer sports coupés jointly developed by Toyota and Subaru and solely manufactured by the latter. It features a boxer engine, front-engine, rear-wheel-drive layout and 2+2 seating. It is sold worldwide fewer than three different brands with respective model names: Toyota 86 in Asia, South Africa, South America and Australia;[1] GT86 in Europe; both of the preceding names in New Zealand; FT86 in Jamaica; Subaru BRZ worldwide; Scion FR-S in the US and Canada. At the same plant, Subaru will produce the new Impreza starting in March 2013. Use subaru brz and Toyota 86 concepts Toyota could setup factories in China for subaru the factories will be used to produce more subaru models with Toyota logo by doing so Subaru and Toyota can avoid third partnership in the country for Toyota to exceeded regulatory limit. References 1.  "World Motor Vehicle Production, Year 2012". OICA. Retrieved 2 November 2013. 2. Jump up^ Nishitani, Yumiko (2008-04-11). "Japan's Fuji Heavy shares rally on expanded alliance with Toyota group". Thomson Financial News. Retrieved2008-04-12. Anderson, G. E. 2012. Designated drivers how China plans to dominate the global auto industry. Singapore: John Wiley & Sons. http://public.eblib.com/choice/publicfullrecord.aspx?p=837619. Bremer, M. & Lamer, M. 2010. “Organizational Culture change: unleashing your organizations potential in circles of 10”; 3rd edition, London, Lambert Academic Publishing Baker, Michael the Strategic Marketing Plan Audit 2008. ISBN 1-902433-99-8. p.3 Drucker, P. 2010, ‘Conceptual Foundations of good market research’, Harvard BusinessSchool, New York. Cameron, E. 2011. ‘Making sense of foreign investments’, Lambert Academic Publishing, London David, R. 2000. Strategic Management: concepts and cases; Prentice Hall, New Jersey Stephan Bosshart, 2010 Past lessons for China’s joint ventures，McKinsey & Company Ibn Inc.2013, China Automotive Industry Handbook- Strategic Information and Contacts. Int’l Business Publications Kotter, J. 2012. Leading change: Harvard University, New York, Kaplan, R & Norton, D. 2010, 'the Industrial market Research’, Prentice-Hall, New York.  "Is it time to rethink public corporations?". Minnesota Public Radio News. 14 November 2012. "Market Analysis". NeMBA. Retrieved 3 August 2012. Narayanan V.G. 2014 "Balanced Scorecard at Delta/Signal Corp." Harvard Business School Case 115-016. Narayanan, 2013 Lisa Brem, and Matthew Packard. Delta/Signal Corp. Harvard Business School Case 112-048, 2011. Rothaermel, F 2012.Strategic Management: Concepts and cases; 2nd Edition, New Jersey, McGraw-Hill Watanabe,W. 2014, The Disintegration of Production: Firm Strategy and Industril Development in China. Cheltenham: Edward Elgar Publishing Websites: http://corp.sec.state.ma.us/CorpWeb/CorpSearch/CorpSummary.aspx?FEIN=042956879 viewed on November 2014 http://www.sec.state.ma.us/index.htm viewed on November 2014 http://www.gmdu.net viewed on November 2014 http://www.thecasecentre.org viewed on November 2014 http://www.bizapedia.com viewed on November 2014 https://opencorporates.com/companies/ viewed on November 2014 http://www.entitysource.com/details/ viewed on November 2014 http://www.mckinsey.com/insights/corporate viewed on November 2014 Jobber, D., & Ellis-Chadwick, F, 2012, Principles and practice of marketing (No. 7th), McGraw-Hill Higher Education. Armstrong, G., Adam, S., Denize, S., & Kotler, P, 2014, Principles of marketing, Pearson Australia. Eagle, L., Dahl, S., Hill, S., Bird, S., Spotswood, F., & Tapp, A, 2012). Social marketing, Pearson Education. Imamura, K, 2011, Reexamination of Sustainable Advantage into SUBARU LEGACY, Annals of the Society for Industrial Studies, Japan, 2011(26), 139-153. Saich, A, 2011, The governance and politics of China, Harvard University Press. Read More