Globalization of Automobile Industry: A Case Study of Volkswagen AG''''s Global reach

• Main Authors: Yi-Hsuan Lin, 林依璇
• Other Authors: Yuan Yi-Man
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/88779597466158397821

碩士 === 淡江大學 === 歐洲研究所 === 92 === Due to the impact of the ongoing process of globalization, the consortiums are all trying to enlarge the market scale and reduce the production cost in order for them to stay in the business. There are several ways to increase the size of the businesses; however, in general, consortiums merge、buy、or form an alliance with others. By doing so, firms could share resources、talents、technology、knowledge and so on with their partners which lower the overall fixed cost. Moreover, firms could directly use the established channels set up by the others in the market to attract more businesses. These channels play as a natural obstacle for the new entrant business. Today, corporations are facing a saturated market which filled with fierce competition. In many cases, seeking for a partner or partners might be better than simply fighting with the opponents. This trend helps to explain that why there are more cases of corporation merging and acquisition happening nowadays. Volkswagen AG is undoubtedly a typical example of a corporation that uses every possible mean to remain its large market share in the automobile industry. VW is a German Corporation, but VW adopts a global reach strategy. This strategy relies much on the principle of division of labor, so the firm could use least inputs to reach a maximum output. The aim of this thesis is to study how VW uses global reach strategy to find a fitted spot for itself so VW could compete with other automobile manufacturers.