The paper "Global Automobile Industry " is an outstanding example of a business term paper. The global automobile industry is global in some sense but there are some aspects that make this particular industry less global, or more localised. Analysing the internalisation of automobile industries, the best parameter to use is the Ellis and Williams 4Cs framework. There are four sets of drivers, all of which start with C, that are needed to be analysed in assessing the globalisation potential of a certain industry. These are customers, cost, country and competition (Ellis and Williams, 1995). Customer drivers have the following components: customer requirements; distribution; and uniform marketing.
In the automobile industry, the customers of cars and other automobile products have different needs. These needs are, most of the time, affected by the purchasing power or income of each individual (Ohmae, 2000). Take the case of a high-end customer as an example: high-end customers would require cars that have a good build, lots of features and add-ons and cars that can symbolise their status. On the other hand, the first requirements or considerations of those at the lower end of the market when they buy cars are the fuel efficiency and durability of the cars that they buy.
In this case, car manufacturers are pressured to manufacture different types of cars (but not totally different, there may be some modifications to one of the cars to suit the specific need of each target market). Analysing the automobile manufacturers, they are actually offering wide product lines to cater to these varying needs of customers. Analysing some of the product offerings of Honda may illustrate more the point.
Honda offers the Honda Accord to the upper market, Honda Civic to the middle class and Honda City to the lower end. In just segmenting the market according to income, Honda already has three variants of its product. Another simple example of the different features of cars that each country-specific needs are that the steering wheel of European cars is placed at the right-hand position while in some Asian countries, the steering wheel is at the left.
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