Audi company Analysis of audi uk case study
History of Audi The modern era of Audi started in the 1960s when Volkswagen acquired Auto Union from Daimler-Benz. Then the Audi brand was relaunched while introducing the Audi F103 series in 1965. Then, Volkswagen merged Auto Union with NSU Motorenwerke in 1969 and started modern day Audi company as well.
Audi Future • Audi is designing a new architecture for battery-vehicle which is branded as premium platform electric, or PPE. It will be shared by other brands, including Porsche. • Volkswagen is expected to spend about $9 billion for its electrification plans by 2023. • Most of the spending will be done by Audi, working as a leader in the corporate effort for the company as well.
Estimate the lifetime value of an Audi Customer Customer life time value is provided by the net present value (NPV) in accordance with the stream of future profits that is expected over the customer’s life time purchase. If it is assumed that Audi makes profit of $6000 per vehicle. a customer on average purchase car after every 5 years. Therefore, in life time a customer purchases 10 cars. Therefore, profit obtained from on customer will be $60,000. therefore, at 15% of discount rate the NPV provided will be CLV for an Audi.
Audi UK SWOT Analysis Strengths: • Technology and engineering • Brand name • Products • Design Weakness: • Diversification • Promotions and communications
Audi UK SWOT Analysis Opportunities: • Target Emerging markets Threats: • Limited markets • Risks of international markets • Competition
Audi UK Pestle Analysis Political: • Regulation for environmental pollution • Taxes and duties in domestic market • Scheme for manufacturing cars that offers high mileage Economical: • Variation of Euro exchange rates • Downfall in Euro market • Lack of proper global economy Social: • Cultural changes and preference for fuel efficiency cars • Lack of purchasing power • Awareness regarding environment pollution and preference for eco-friendly vehicles
Audi UK Pestle Analysis Technological: • Application of advanced technologies for consumer demands • Application of technology reduces cost and provides context to design complex and effective design • Context for eco-friendly revolution Legal: • Restriction regarding environmental measures • Design cars that are eco-friendly Environmental: • Awareness of people regarding environment pollution and preference for eco-friendly vehicles • Regulation for environmental pollution • Popularity for eco-friendly vehicles
Conclusion Audi is one of the leading companies that design luxury cars and this is one of the most popular automobile brand in the world. However, there are lot of competition in the market and they need to design proper strategies for managing this competition and ensure that it does not affect business process of Audi. In this context, Audi should consider SWOT and PESTLE analysis for ensuing that their business strategies are effective and efficient as well.
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