AUDI UK CASE STUDY

 

Audi is one of the best selling manufacturer of cars, it manufacturer the luxury selling automobiles in the county. The origin of Car Audi is in German, it was found in the year 1885 by the company called “Wanderer”, and later in the upcoming years it became one of the branches for Audi. Previously it was subsidiaries group of the Volkswagen Group and has terms with the Bavaria and others in Germany. Now the vehicle has the different production facilities, total nine facilities worldwide. They launched their first car in the year 1910 and it was “Audi Type A sport Phaeton” which was also said to be the successor of the Type B, which was said to have been launched on the same year itself. Now Audi makes the most technically innovative cars, they were the once who first made the six cylinder engines for their European models of the cars. Today, Audi has the highest number of sales during the year 2000, since then it never looked back, in the year 2011 Audi saw the majority rise in the record sales in the seven countries across the world. 

 

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Audi has a fifth big share of market in UK, in the recent interview with marketing director of Audi UK, he stated that this company has some successful and enthusiastic stories as the people in United Kingdom, kind of love the designs of the luxury cars, he further claims that Audi has some unique designs and these are beautifully, extremely made. Later, he told that the brand is thinking of increasing the annual marketing in United Kingdom budget by 15% and to root it out they have been focusing on the digital channels mainly. As per the latest statists reports, the market values of Audi in between the December 2016 to December 2020 had the range in between 3.1% and 9.8% that states that Audi always had a huge portion in the UK car market. Audi is one of the popular brands which revolutionised since the year 2017 when they launched the “beta.audi.co.uk” mobile first, this was the best initiative taken by the company. The premium online experience helped the company to bring back the customers into the exotic experience of the car buying process. 

 

 

The Internal analysis of the AUDI company will be done with the help of SWOT Analysis. SWOT Analysis means evaluation of certain strength, weakness, opportunities, as well as threats of the organisation. The Strength and weakness are considered as the internal factors and opportunities and threats are considered as the external factors. This analysis will help in provide the Audi a methodology in comparison with its competitors, industries to assess their performance in business. Audi being the major player in the automobile industry has always tried to keep itself as the highest successful brand, and thus it has built many strategies to cope up with. Keeping in mind the customers demand, needs they always tries to produce some unique, creative innovative designs. So now, let’s look into the analysis of the company:-

 

One of the major strength of Audi is its technology which is always working behind the engineering, accuracy of the vehicles. They never comprise on the look of the cars and thus, they use the precise engineering methods, high capacity engines to manufacture it. They have some high class authentic services which function with premium technological advancement.

Another most important aspect of Strength is the “branding” of the company as it has one of the most trusted customers across the world that has helped in promoting the brand successfully, as well as making it a brand name. Another reason, behind the Brand establishment is the Audi’s own style, technology; safety makes the organisation gain the brand name for the luxury car maker.

The main weakness of Audi, that it has no low cost variant as it lags behind the categories of the luxury vehicles just like BMW is diversified to low cost vehicles.

Audi’s strategies are relatively low in the case of promotions; recently they are performing very weak in doing promotions through the various channels or advertisement in the comparison to the other rival brands.

The incident of diesel in the year 2015 to 2016 has already led the forced payment of dollars by Volkswagen and it also consecutively leaves a bad impact on the company Audi.

Due to the presence of the limited number of the luxury car brands markets, it is a boon for the company to expand its business, introduce its products in the emerging markets, covering more geographical territory and bringing much more profit or revenue for the company. 

 

Audi has the opportunity to introduce its products with innovation, diversification as it will help the company to stand against all the competitors. With the help of innovation the company was able to drive differentiation in the market which can also help the company to perceive the long run.
 

The market is very limited for the premium brands, there is difficulty in targeting  such luxury cars to the younger generation as the cost of the cars are high, and not easily affordable for every classes of people. Recently the organisation is facing threats from the international markets cause of the rising markets if the rivals. Now, there has been a lot of competition in the market of the luxury car manufacturers. 

 

The PESTLE Analysis (political, economic, social, technological, legal and Environmental issues) it will provides an indication for the organisation for the business for the issues being faced by them in the market. 

Political – Audi operates in more than 100 countries, and the working condition keeps on changing due to the country’s existing policies of the Governments. The Recent trade war in United Kingdom there has been a risk for the sales of the cars.  This has almost slowed done the market for the company and has impacted their business a lot. Moreover the much debated decision of UK leaving the European Union may out impact on the charges of the vehicles.

 

The Company is the premium brand in the automobile industry, the economic stability of the country tends to defeat the position of the car making company. Similarly, when the UK’s market decline it becomes very difficult for the car manufacturing company to gather the sufficient funds to create premium products. For example, the recent pandemic has affected the business of the company bringing a worldwide uncertainly and decreased in the sales of the automotive industry

 

Each Country has their different kinds of culture and social trends, demand of the cars is rising always in the developing countries, the recent shutdown in the global economy has impacted the growth of the Audi Company, it has affected their purchasing power and the decrease in the demand of the luxury branded cars. Other than, it has eminent rivals like BMW, Tesla in the UK markets; it also struggles to target the younger audience because of its price of the car. 

 

The Company is famous for its technological advancements, in the today’s changing world it has come up with new kind of ideas. It provides certain online tools for the private non commercial use in UK only. The cars are coming up with high quality video camera, premium sensors; even they are investing in the research development to establish new automotive techniques. 

 

Company has the possibility in get into the legal bindings in the countries which the organisation operates in, in the case of Audi the recent incident has impacted a lot and scandal of diesel in the year 2015 has impacted the business as Volkswagen had to pay many taxes which indirectly affected Audi. 

 

Audi puts continues efforts to achieve sustainability and contribution towards the environment, the company has decided to develop the green technologies like electric motors, batteries and others. As automobiles are the major source of pollution so it has decided to adapt to the automotive shift. 

 

Thereby , it can be recommended form the above analysis the Company need to focus much more the creating promotional ways out to advertise it brands in the market as it will prove to be a fruitful result for the company later. Improvements should be made by the company in the terms of technological advancement in the cars, as the greatest strength of the company is the innovation and the customer loyalty.  If these certain methods are followed it will help them to compete with their rival company smoothly.

 

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Therefore, the above Case study points out the benefits and the various growth areas of the company, these analysis has revealed that Audi Company has the highest opportunity to absorb and increase the consumer spending. Though, the extreme brand value and the laws of UK have abided them with the loyalty and make it difficult for the rival companies to compete with them. The excellent techniques, digital transformation provides a gateway for the company to keep on the track with the satisfaction of the customers.