Essays on Importance of Collaboration in the Automotive Industry Coursework

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The paper "Importance of Collaboration in the Automotive Industry" is a great example of marketing coursework. Collaboration is a broad and multi-dimensional concept that lacks a specific or standardised definition. Nevertheless, in simple terms collaboration can be considered as a process through which two or more individuals or entities work together in order to achieve common goals (Marinez-Moyano 2006). On the other hand, Spence (2006) argues that collaboration extends beyond working together to achieve common goals. Instead, it involves a deep and collective endeavor that is creative in nature and encompasses aspects such as knowledge sharing, developing consensus and learning.

Wagner and Leydesdorff (2005) further argue that collaboration entails working together in order to amass greater resources and advantage in the face of increasing competition in the market. Similar to the sentiments of Wagner and Leydesdorff (2005), Schuman (2006) conceives collaboration as a process that entities engage in order to gain an advantage. She particularly notes that collaboration enables individuals or entities to address problems, increase value and realise desired outcomes that they would have otherwise not have realised if they were working single-handedly (Schuman 2006). Importance of Collaboration in the Automotive Industry The automotive industry is a major driver of the global economy.

This industry acts as a major source of revenue, employment opportunities, innovation and facilitates the growth of other industries by enhancing mobility (Wells 2010). Currently, it is estimated that the global automotive industry is approximately worth $800 billion. Following the 2008 and 2009 global financial crisis, sales in the automotive industry declined substantially. However, in 2012 the growth of industry grew by 5.6% and was estimated to be worth $1,587.4 billion (MarketLine 2013).

Although the automotive industry has revived since then, the rate of growth has been somewhat slow especially in developed countries such as the United States, Australia, United Kingdom and other European countries. Many experts have forecasted that the future of the automotive industry lies in emerging markets such as China and India. According to the Global Automotive Report 2013, China is currently the World’ s largest market for automotive products. Its annual sales of cars are expected to increase from $19 million in 2012 to $31 million by 2020 (CCF 2013; Diehlamann & Hacker 2013).

Thus in order to enhance their profitability, increase their competitive advantage and sustain their growth strategy automotive companies have to tap into these markets. Diehlamann & Hacker (2013) argue that in order for automotive companies to effectively tap into or capitalize on the booming market in emerging economies such as China collaboration is important. Besides the market forecasts of the global automotive industry, there is a wide range of challenges that automotive companies are facing that warrant the need for collaboration.

According to a report by Deloitte and the Stanford Global Supply Chain Forum, the automotive industry is facing a wide range of issues that are likely to inhibit the sustainable growth of the industry if not addressed. Some of these issues include overcapacity, slow market growth, high costs of production and operations among many other challenges. As a result, many companies have come up with numerous initiatives in a bid to enhance their profitability and improve shareholder value. Many companies have directed their efforts towards product and service innovation, customer relationship management and lean manufacturing in a bid to address these issues.

Nevertheless, many automotive challenges are still faced with the challenge of enhancing value. Following extensive research, the findings of the report suggest that through collaboration companies in the automotive industry can be able to enhance their value (Deloitte & SGSCF 2003).


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