Free Essays,College Free Essays,Free College Essays at Anti Essays

Magna International in a Global Economy
Magna International is one of the leading suppliers in the automotive industry and is one of Canada’s largest companies. The multination corporation is based in Aurora, Ontario and is traded on the New York and Toronto Stock Exchanges. Magna designs, develops and manufactures automotive systems, assemblies, modules and components, for a majority of the automotive companies worldwide. Magna is the primary supplier for Ford, General Motors and Chevrolet which combine for over 60% of Magna’s sales. Magna International was founded in 1969 when Multimatic Investments Limited merged with Magna Electronics Corporation Limited. Since then Magna International has expanded its market and shown exceptional growth financially. Magna employs approximately 83,000 employees, spread across 23 countries worldwide. Magna has demonstrated outstanding growth in Revenue for the past sixteen years and showed 6% sales growth in 2006 totalling $24.2 Billion, making them the fourth largest supplier in the automobile industry.
This paper will outline the changes in the automotive industry over the past decade and explore how Magna International has responded to the transformation of the global automobile market. The paper will discuss how Magna has separated itself from the competition and adapted to a new competitive and diverse market. It will show what Magna has previously done in response to globalization and highlight its proactive strategy to remain competitive. Magna challenges competition through innovation, intensive research and development, and aggressive growth strategies. It will then argue how expansion is necessary to keep up with the industry and how Magna has remained ethical throughout all of its endeavours. The paper will then display Magna’s largest challenge, accessing the dominant Japanese market. It will then provide possible strategies to overcome their obstacles and conclude by evaluating the actions of Magna...