In 2012, the production capacity of the Thai automotive industry was 2.75 million for cars and 2.8 million for motorcycles. Both numbers are expected to surpass 3 million by 2014 due to the strong economic and industrial growth in Thailand. Toyota Motor Thailand Co., Ltd leads as the largest automobile manufacturer in the country, with a production capacity of approximately 550,000 vehicles per annum. Isuzu Motors and Mitsubishi, each with a production capacity half that of Toyota’s, come in second and third, respectively. Exports Thailand began exporting cars in 1987.
Then, they can be exchanged or sold (actually it dépends on wich style of trade the economy is based) . The more a state’s economy puts varied products on the international market the most it will get back profit wich can be injected in different sectors in order to make them growing. The second main benefit is the growth of emerging countries,like China, India,ect… These countries are providing lots of products westren countries need sot hey can count on these exchanges in order to make benefit. The main profit is based on a cheap and fast manufacturing heavily demanded by western companies, due
In United States, free trade advocates typically argue that consumers benefit from freer trade because foreign competition forces U.S. companies to keep prices low and provides a greater selection of goods and services. Foreign trade also forces U.S. companies to modernize plants, production techniques and technology, which keeps them competitive. Another argument for free trade is that the cost of protectionism outweighs the benefits. Finally an open trading system may create a better climate for investment and entrepreneurship than one in which the fear of governments cutting off access to markets is present. However, the competition that free trade brings to domestic industries may at the same time result in unemployment and slower growth.
CORPORATE STRATEGY AND DIVERSIFICATION Definition: Diversification involves increasing the range of products or markets served by an organization. Two types of Diversification: Related Diversification involves diversifying into products or services with relationships to the existing business. Conglomerate (unrelated) diversification involves diversifying into products or services with no relationship to the existing businesses. Synergy may result through the application of management expertise or financial resources, but the primary purpose of conglomerate diversification is improved profitability of the acquiring firm. Little, if any, concern is given to achieving marketing or production synergy with conglomerate diversification.
The operating income of Acer also increased from year 2007 of US$209 million to year 2008 of US$314 million. It had shown 50 percent increase in worldwide (Acer News, 2008). Acer outsources its manufacturing globally and sells its product through resellers and distributors in five areas that are Asia, China, Pacific area, Middle East and African, Europe and Pan-American. It includes the Acer Sales & Services Sdn Bhd in Malaysia that was established in 1990. In Malaysia, Acer was ranked as the first PC and notebooks
INTRODUCTION Indian Shoe Market: The Indian footwear market is estimated to be worth USD 3.94 billion and is growing at a compounded annual rate of 15% to be worth USD 6.89 billion by 2015. The global footwear market size is estimated to be USD 181.9 billion growing at a CAGR of nearly 5%.India is the world’s second largest footwear producing country, second to China and the third largest market. Even though the per capita shoe consumption in India has gone up from 1.4 shoes a year in 2004 to 2.5shoes per year in 2012, it is still much below the average per capita income shoe consumption of five, in developed countries India is a major supplier of medium- and low priced footwear. Several footwear majors source parts of their production and purchase from India. Further, reputed global brands such as Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Reebok, Ecco, Deichmann, Elefanten, StMichaels, Hasley, Salamander and Colehaan are manufactured under licensed in India.
(A) Identify and analyse Tesco’s current business strategy Tesco is one of the largest retailers in the world by revenues ($94,185 BILLION), just after Wal-Mart and Carrefour. Their goals are to improve value (Shareholder) and loyalty (Clubcard) for their customers. Tesco’s strategy in the UK market: i) Core UK Business Tesco has established supremacy in the United Kingdom; the keys’ factors of their success are characterized by the quality of their products, price and their strong relationship with their customers. ii) International strategy Tesco’s international expansion strategy has also been successful; they have stores in 14 countries across Europe (Czech Republic), Asia (China...), and North America (USA…). The
Not surprisingly, the global economic crisis has translated into lower sales in North America and Europe, where Whirlpool generates nearly 75% of its revenue. By contrast, sales in Latin America and Asia are showing double digit gains. Whirlpool is not new to foreign markets; for example, the company has had a presence in Latin America since 1957. Today, it is the market share leader there, offering global brands (Whirlpool, KitchenAid and Maytag) as well as local (Brastemp) and regional ones (Consul). At the beginning of 1993, David Whitwam, then-chairman and CEO of Whirlpool Corporation, told and interviewer, “5 years ago we were essentially a domestic company.
SWOT Analysis Strengths Rayovac Corp. has a number of strengths that have helped them become a successful business over the last century. Recently, however, Rayovac has managed to compete and be there third largest player in the highly saturated, yet highly lucrative, alkaline battery market. They have gained access to shelf space and negotiation power with retailers through its parent company, Spectrum Brands Inc., due to its broad portfolio of products in many different markets and product segments. Spectrum Brands Inc. is able to negotiate with retailers for shelf space easier than Rayovac would by itself because of its established relationships with the retailers as well as its overall size lends it to being seen as having much lower risk potential. Rayovac batteries are seen in the market as a “value” and not “premium” brand like Duracell or Energizer.
Situational analysis CEMEX is one of the world’s largest supplier of building materials (US $15.14 bln sales in 2011). The Mexican company founded in 1906 has long been a local, Mexican player but since 1992 it has stepped on an exponential „road” to become global. A key instance for this has been the appointment of Lorenzo Zambrano to be the CEO and Chairman in 1985. With his in-depth knowledge of the Monterey based company (grandson of founder and went through the ladder till becoming CEO), extensive business management skills (MBA, US universities), and openness to high-tech solutions, computer aided business (CEMEXNet) CEMEX acquired and developed the skills necessary to outperform its rivals in size, quality, and profitability. Success can be rooted to the strategy that CEMEX has been focused on emerging markets where profitability was higher versus developed markets.