Strategies By Introduction Car manufacturing industry is one of the industries that has been expiring numerous changes due to the effects that are brought by the effects of technology in the global world today. Most of the car manufacturing is based in China. Other examples of global multinational car manufacturing companies are General Motors Company, based in the United States of America, Honda Motor Company, which is based in Japan and Toyota Motor Corporation which is also based in Japan. However, over the years, the car manufacturing industry multinationals have laid some strategies which have enabled them to succeed in this business and hence the industry over the last 20 years.
One of the factors that have brought major changes in this industry is the evolution of technology and the changing tastes and preferences of consumers in the global market. Advancement in the levels of technology over the last two decades has brought by numerous changes in the world of manufacturing. Inventions and innovations have also increased as people and resources have increased (Hopkinson, Hague & Dickens, 2006). Dealing with the available demand has become a requirement in this industry.
Therefore, the key stakeholders in the global market have come up with some strategies that have enabled them to remain competitive and up-to-date in the global market. These strategies are discussed broadly as follows: Body Globally, the global multinationals in the car manufacturing industry have been experiencing a lot of transformation over the last few decades. This has been triggered by development and evolution of the internet. The use of the internet has greatly improved ecommerce and communication (Aslesen & Moen, 2010).
Ecommerce allows the manufacturer and the client to conduct business online. Innovation and development of online payment systems using visa have even made this online trade even faster. The Internet has also facilitated faster and reliable communication between the manufacturing companies and all their clients in the global market. All information regarding all their products is published on the manufacturers’ websites where all clients have access too. Availability of the internet has also helped to conduct online market through various sites (Aslesen & Moen, 2010). One of the strategies which most of these manufacturing companies has adopted is advertising their products on social media platforms such as facebook. com and twitter. com.
They also place their ads on Google as people all over the world commonly use it. Further, globalization has also led to economic independence among the nations, which are in the car manufacturing industry. Managing the human resources that are available within the country and improving it with more training and development has become a core to this manufacturing companies in different countries in the world. Additionally, these companies have greatly invested in research and development (Hopkinson, Hague & Dickens, 2006).
Many say that technology has greatly impacted on this as it its revolution is the reason behind it. Human resources have a major influence in this industry. Therefore, training in this field has also improved and up-to date with the technology in the global market. Research and development is one of the strategies that this industry has greatly invested (Hopkinson, Hague & Dickens, 2006). This has been used in determining the needs and preferences of the clients in different parts of the world.
It has been a core in this industry. From the look of things, most developing countries are the main clients of the car manufacturing industry. This is because the federal governments of these countries are getting grants from developed nations and super powers in the world to develop their infrastructure. Therefore, the industry has invested in market research to assess and determine the needs of the clients in the global market (Hopkinson, Hague & Dickens, 2006). Through this, the industry has been able to manufacture what their clients need in different parts of the world. Secondly, the industry has also taken advantage of the transformations that are brought by the internet.
The Internet has become an important tool in ensuring ecommerce and communication all over the world. Ecommerce has made business much easier as clients can order and purchase different products from any corner of the world and pay through electronic cash systems that have also been development to facilitate online trade (Hopkinson, Hague & Dickens, 2006). The Internet has also been an important tool for marketing in the car manufacturing industry (Hopkinson, Hague & Dickens, 2006).
All information regarding the major players in the manufacturing industry is published on various websites where clients all over the world can easily access. Marketing is also achieved through posting various ads and billboards especially on social media platforms as most clients of the industry visit these sites on a daily basis. Thirdly, the industry is also expanding into the emerging markets globally. Africa and other developing continents in the world have been the main clients of this industry over the past few decades.
Therefore, the main stakeholders in this industry are aiming ant entering and penetrating into this market fully. Hence, this is the reason as to why they have greatly invested in research and development to ensure that the manufacture products which suit the needs of their clients. Another thing, which the giants in this industry have considered, is manufacturing cars that are fuel savers. Due to the global recession, which has led to the financial crisis in different countries in the world, fuel prices have continued to fluctuate over time.
Due to this reason, the companies in this industry are manufacturing vehicles, which suit the needs of their customers. Additionally, most of the developing nations have poor infrastructure. Therefore; the manufacturers need and have always developed vehicles, which suit their roads. Further, diversity has also led to the major transformation in this industry. With diversity, we mean form products to clients and technology. In this 21st century, advancement in the levels of technology has led to the development of new products in the industry that suits the needs of the clients (Hopkinson, Hague & Dickens, 2006).
The main stakeholders in this industry and the companies in charge also aim at localizing the management of all their manufacturing firms in different parts of the world. Managing human resources has always been a challenge to most international manufacturing firms. Localizing these firms enables these firs to have an upper hand in getting the benefits from the federal governments of the clients’ countries. By this we mean, payment of taxes for every import or export for all their also products and easier managements of all the logistics, which are involved in this industry. In addition, the car manufacturing industry also aims at training many people in soft skills that are required in this industry.
This will enable to increase the workforce in this industry and provide them with required knowledge and skills, hence improving their productivity. This will further eliminate the issue of fluctuating workforce in this industry that has been a major challenge all over the world among the nations, which have specialized in this industry. This will also enable the stakeholders in the industry to solve the issue of fluctuating workforce in this industry. Additionally, the main players in the industry aim at building collaborative corporate culture with all other stakeholders involved.
This enables the industry to adhere to one of its main duties, that is; it must ensure corporate social responsibility to their clients, the governments, employees and the community in general. This further enables the industry to tap into the global pool of talents in order to facilitate more production and invention of new products. In my opinion, advancement in the levels of technology has clearly led to great innovations in the car manufacturing industry.
In addition, discovery of the internet has also led to ecommerce and improved communication between the stakeholders and clients. Therefore, it is the role of the stakeholders to ensure that they have developed the best strategies in order to survive in the market and to increase their profits. References Aslesen, S., & Moen, S. E, 2010. Communication in the Manufacturing Industry. Hopkinson, N., Hague, R & Dickens, P. (2006). Rapid Manufacturing: An Industrial Revolution for the Digital Age. NJ: John Wiley & Sons.