The paper "Troubled Alliance between Suzuki and Volkswagen" is a perfect example of a management case study. Since the year 2009, the sales of vehicles and their parts have gone down due to the crisis in the world economy. Therefore, both companies have experienced a reduction in their sales just like other competing companies. The two companies, Volkswagen and Suzuki, are interested in improving the lifestyle of people in the motor world. The major advantage, that they share, is that most governments in the world also in interested in promoting the same and hence advertises their product unwillingly.
There are no restrictions in the country on any style and a vehicle. In this case, there can be very close types of vehicles and other auto machines improving competition among them from the competitor's companies. Economically, the economy is in a recession and hence both companies need to come up with attractive prices. Both companies use quality parts to make up their vehicles, and they use mobile advertising to reach their target group. They also give a good reason for the customers to buy their products.
Volkswagen, for example, has collaboration with virgin media and O2 to keep the database of their clients. On the other hand, Suzuki lies in their system to keep the same database. Technologically both companies are up to date and hence their attractiveness to the customer is easier. The partnership of both companies has also helped them to attract new clients and also maintain the already customers in their database. Economies of scale are also another strategy that the companies use to beat off their competitors from the market.
Economies of scale help to reduce the cost of production and hence this helps the companies to reduce the prices. Volkswagen has an advantage over the other motor products providers in that it enjoys the first-mover advantage. This is the advantage of being the first one in the market in different locations. It is expensive, but it worth venturing into a new market. It also has state of the art products, has a very strong brand name among its competitors. It is one of the names that have a range of offers and has active management. Both companies use different theories of marketing.
However, both companies use the porters five models as their primary model. This a simple to understand the tool but very effective when put into operation. It is especially very powerful so that one follows wherein the situation of business the power lie. It is considered very influential as explains the competitive position of the company at present and the predictable, competitive position which the business considers moving into. On the hand, Suzuki uses promotion as their highest point.
The company has very vibrant development techniques. The company has explored the use of major advertising sites like Alibaba. com. It must also be noted that the corporation also advertises in major financial and economic newspapers. It must be noted due to the vibrant promotion techniques used by this company, and the company has received very high ratings. These ratings have been in terms of positive customer satisfaction. It is vivid to note that the business has used vibrant advertising to promote the products. The company has used different types of media to assist in advertising.
For example, the company has used the internet to promote its products. Advertisement on the internet is a very fundamental technique since it allows many people to the global environment to view the products. It also allows people to register membership online making it very easy for anyone to access them. Their brand name Suzuki is also a leading name in the industry and hence attracts many customers and especially in India where it is considered a market.