Porter Diamond Theory Case Study: German Car Industry

Kelly Services is a company that provides a wide range of experienced work force to temporarily staff developing companies or assist companies that are experiencing low manning. Kelly Services’ employees are experienced and well educated. We have a wide range of experienced engineers, mechanics, pharmacists, and very motivated labor workers. We believe that Germany would be the best country to focus our attention on because of the skill we have to offer. Germany is responsible for $1.5 trillion worth the exports globally. The $1.5 trillion includes vehicles, machines (engines and pumps), electrical equipment, pharmaceuticals, medical equipment, plastics, aircraft, aircraft parts, oil, iron, steel, and organic chemicals. (Workman, 2015) Because of Germany’s wide range of exports globally, there are always companies being built to keep up with the demand. Germany’s scientists are also working hard to invent new machines to replace labor workers in order to cut down on the costs for running their industries.

The industry for superior luxury cars is a highly exclusive one with a few automotive makers making their presence felt. The major market share is held by Porsche which is known to have formidable rivals like Benz and BMW. The SUV supercar segment is a highly evolving one where manufacturing style localities and units are the decisive forces that ultimately culminate towards the cost of the car.

Major Historical Changes: Germany has one of the highest economic productivity, technological development, and education in the world.

The Brand VW has always conveyed the message as an affordable car. The companies product have been looked upon as one which offered the benefits of German engineering affordably, emotionally. The cars represented completely different driving experience – more connected to the road – different way of driving – more connected to the world. Heritage of German engineering and the car's more fun, pleasurable driving experience were the powerful strengths. Affordability was one of the key factors as against most of the other German cars makers who represented only the high end of the Segment. It also focused on Drivability – Unique driving experience not just on the car's ability to get people from one point to other,

This report will look at the feasibility, the riskiness and the profitability of an expansion into the German car market. First, we will analyze the host country, Germany, with respect to its economics, political, legal and cultural aspect. Second, a SWOT analyses will be conducted to determine if Great Motor Wall is in a good

In 2010 Germany became the 3rd most important countries in exporting goods in the world. some of their most famous are automobiles. germany produces 5.2 million cars a year. These companies consist of companies like Mercedes-Benz and Porsche. Germany make over $1.337 trillion a year. Over 80 percent of Germany’s land is used for agriculture and forestry. In the western, the number of farms decreased dramatically between 1949 and 1997 because of machinery and economic jobs opened up and offered more money. sence Germany's has a very diverse landscape types of produce agriculture will change from region to region. Like in the east of germany, where normally s is flat, plants such as Cereals and Sugar Beets are grown.Fruit orchards and vegetable farms surround almost all large cities. In the south and western part river valleys make great places to grow Rhine.Germany is probably most known for its beer industry. Though it isn't only made in Bavaria it is where most of all the beer is made. Germany is one of the world's biggest producer of agricultural

Not too long ago Germany was a country that was slow growing and had high unemployment rates. It was not the powerhouse that people often associate it with being today. As of today many things on the continent begin and end with Germany as it has become looked at as the big brother. Since Germany has become a powerhouse in Europe many have blamed them for the economic turmoil that different countries are going through “German export performance and the sustained pressure for moderate wage increases

Germany has the largest national economy in Europe, the fourth largest by nominal Gross Domestic Product (GDP) in the world, and the fifth largest GDP per person based on purchasing power parity (PPP), and is a founding member of both the European Union and the Eurozone. Germany has a social market economy that combines capitalism with social policies favoring social insurance.

Germany is known to be one of the largest and most powerful economies in the world. It is located in Central and Western Europe, and stretches along the Baltic and North Seas. The country covers a total of 357,022 sq km, 348,672 sq km with land and 8,350 sq km with water. Germany shares borders with nine other countries, France, Switzerland, Belgium, Denmark, Poland, Czech Republic, Austria, Belgium, and The Netherlands. Germany is the seventh largest country in Europe, and the 62nd largest in the world (CIA World Factbook, 2016). The capital of Germany is Berlin, but it also surrounded by many other major cities (Leipzig, Munich, Stuttgart, Aachen, Nuremberg, Bonn, Heidelberg, and Cologne) to name a few.

Germany is an ideal logistics location for numerous reasons. The country size and prosperity make it a major customer in the goods market. Its central location in Europe enhances its role as a transport hub and the polycentric economic structure requires shipping services. The high level of industrialisation and trade openness generate additional goods flows. Furthermore, the high network density and high quality of the transport infrastructure are unique in Europe.

As Volkswagen was responsible for employing almost half the population in Wolfsburg, it wielded a high degree of implicit influence. Because Volkswagen’s presence attracted other global, complementary and high activity area

Thirty-seven of the world’s 500 largest companies (based on stock) are headquartered in Germany. Many of those companies are car companies like Volkswagen and BMW. Other large names include Adidas and Puma. These companies are popular clothing and shoe brands found in the US. The retail store Aldi along with the computer software program, SAP, can also be found in Germany. Many of these businesses are headquartered near the largest cities in the country. Berlin is the largest city with over 3,275,000 people (Elledge). The second largest city is Hamburg with 1,686,100 with Munich following close behind with 1,185,400 people (Elledge). (Unless otherwise noted, all data in the above paragraph came from the article “Germany Industry Sectors”.)

The Federal Republic of Germany; with its capital city of Berlin, is located in Central Europe. With a population of 80,722,792 people; 65 to 70% of that practicing Christianity. The common language spoken in Germany is German, or Deutsch. With a total land mass of 137,846 square miles, Germany became one country again after the demolition of the Berlin Wall ending the Soviet Unions control over East Germany reuniting the country after nearly 30 years. Germany has prospered and once again become a nation to be recognized. ‘’Germany is also considered to have a moderate climate with no specific long periods of hot or cold weather’’. Although most of Europe uses the Euro, Germany has adopted the Deutschmark as its currency.

However, due to its unique targeting strategy, it has not win compatible brand recognition among the public. Although Audi enter much earlier than BMW and Benz in the luxury car market, its marketing strategy limited increase of public brand recognition even Audi has over 100 years’ history. Besides, although its styles are highly accepted by the targeting customers, there are a growing number of people who can afford luxury cars for family use in China. Lack of vitality is limit of its further market expansion. On the contrary, its major competitor in China, BMW, has launched a series of marketing strategies to promote its high-performance, manoeuvrability, as well as stylish design to attract young people (BMW, 2009) in order to expand its market share. Therefore, although Audi has achieved success in the targeting market, it may consider further development through diversification in product line and advertising campaign.

These small-town businesses, along with industrial giants such as Siemens, Bosch, and BMW, help maintain Germany’s manufacturing and export prowess. Germany’s manufacturing’s share of GDP is bigger than other rich countries and German exports are stronger than other countries. Half of Germany’s growth over the past decade has come from exports. The external surplus of $243 billion is the world’s largest in absolute terms.