“Vorsprung durch technik”
1. Introduction 2
2. The firm Audi, facts & figures 3
3. Core Competencies & Capabilities 9
3.1 Defining core competencies 9
3.2 Capabilities and parenting advantage 12
3.3 Dynamics 13
4. The role of innovation 14
4.1 Innovative Strategy 14
4.2 Entrepreneurial discovery 15
4.3 Product Innovation 17
4.4 Process Innovation 18
5. The four cornerstones of the Resource Based View (RBV) 20
6. Audi within the automobile industry 22
6.1 Strategic groups and jockeying for position 22
6.2 Completing the five forces of Audi 24
6.3 The position of Audi within the industry 27
7. Branding and Value appropriation 29
7.1 The role of branding in the Audi strategy 29
7.2 Value appropriation on the buyer side 31
7.3 Value appropriation on the supplier side 32
8. Conclusion 34
This report consists of an in depth analysis of the strategic position of Audi in relation to its industry context and its competitors in the automotive industry. Our goal in this report is to analyze Audi in terms of its competitive position in the automotive industry and the strategic group in which it operates. In our analysis we used both the inside-out approach (Resource Based View) as well as the outside-in approach (Porter’s Industrial Organization).
The research questions that have to be answered are:
1. Does Audi have a competitive advantage compared to its competitors (BMW and Mercedes)?
2. Is Audi’s competitive strategy aligned with their objective of becoming the number-one premium brand in 2015?
In this case study we will look at the firm Audi AG in various contexts to explain their rents and profits. In chapter two we give an overview of the firm Audi and its history. In the third chapter their core competencies en capabilities are analysed. In chapter four we look at the innovations that are going on in the firm. We will...