Supply Chain for Audi

Focusing only on Germany 70.5% of the revenue for this company came from Germany Market. That will affect the company revenue because if the economy in Germany is not growing or sales in Germany is not going well. Or the competition in this area becomes higher. – Small amount of production Audi has a small amount of production according to its Competitors for Example BMW produced 1.1 million units and Mercedes 1.2 million unit and for Audi in the same year it was 0.9 Million unit that will affect the revenue of the company. because in the same year the revenues for BMW was 48,999 million Euro and for Audi it was 31,142 million Euro in the same year.

– Opportunities – Sales in china China is the third world’s largest car market after US and Japan. China expectations are that it will be the world largest in 2015.Audi is the chines market since 1988 and it represents 10% from the whole market. Audi became back in the chines market in 2006 by Audi A6 modified engine. – Russian market. Russia is one of the fast growing car markets in the world. The annual growth was 30% in 2006 compared to 2005.Accourding to those changing Audi is preparing itself to compete in this market throw a large net of dealers and satellite service workshops in Russia.

Middle East Market The Arab Gulf Area is one of the most important areas for luxury cars. Many of automotive industries start to establish their own factories there. The luxury car Is expected to grow 20% for the next 3 years. Towards that the company started to invest a lot for the luxury cars there like Audi Q7.

– Threats – Material prices Cost of the raw material such as aluminum and other for this industry is rising. That will affect the company because the prices will be higher and that will increase the competition for the Japanese companies. – Economy in Eurozone 90% from the revenue for Audi comes from Eurozone market and the euro economy is declining so it’s too hard to get the target revenue in this market only.

References Automotive Supply Chain and Logistics Management Proceedings of the International MultiConference of Engineers and Computer Scientists 2008 Vol II IMECS 2008, 19-21 March, 2008, Hong Kong Audi Company profile Article Wikipedia