One cannot deny the evident rise Asian economies have endured in recent decades. After intense research into this economic prosperity, it only makes sense that an interest has been provoked. Before setting up an auto parts factory somewhere in Asia, it is important to investigate the business environments of the countries in question. Indonesia, Thailand and Vietnam are all Asian nations with unique strengths and weaknesses, all of which much be addressed before Worldwide Khan makes any moves. In the last decade, the Vietnamese economy has developed at a notably swift pace. However, the Vietnamese auto industry did not progress as at a similar speed. In 1991, the Vietnam government introduced foreign funds to assist in the development of automobile manufacturing and the assemble industry. There are currently only a couple hundred of auto part manufacture enterprises, most of which are small manufacturing enterprises with low technology and production capacity. Such numbers are one fifth of Indonesia’s production base and one fifteenth of Thailand’s. Auto parts in Vietnam generally depend on importation, as the automotive supply-base is extremely limited. While there are currently only three foreign auto parts manufacturers in Vietnam, meaning less competition, there are evidently crucial reasons as to why not many manufacturers flock to do business there. Due to the miniscule size of the Vietnamese market as well as the lack of parts supply-base, it is with little debate does one why this location may not be the ideal Asian country to set up an auto parts factory for Worldwide Khan, LLC. According to the General Director of Toyota Vietnam, Yoshihisa Maruta, “a long-term development plan, stable policies and greater incentives for... ... middle of paper ... ...g Deep Sea Port (one of the leading sea ports in the world) make automotive parts exports exceptionally efficient, saving cost and time for market competitors. All of these factors contribute to the evident opportunities available and reasons for a foreign investor to enter the market in Thailand. After absorbing the various pros and cons that would come along with handling automotive part manufacturing in each of these countries, it is in my opinion that Thailand is the location with the most potential. To handle such business in Vietnam would require taking on baggage that may result in much input, with little to show in rewards. Indonesia appears to be a strong contender, almost paralleling the strengths proposed by Thailand. However, the encouraging government support of Thailand in its automotive industry is what strongly separated it from Indonesia.
Imagine you’re driving down the road in your brand new car. Another driver pulls out from a side road and suddenly the whole side of your brand new car is twisted and dented from fender to fender. Most people will be in an automobile accident at some point in their lives and they will require the services of an auto-body repairman. Auto body repair is not only the art of taking damaged vehicles and making them drivable and safe, it is also taking old vehicles or worn out looking vehicles and painting and freshening up their overall appearance.
World War 2 drew a hard blow and left a serious and lasting effect to many Asian countries. This however, did not hamper the growth of countries such as China, Japan and Vietnam as their governments were taking serious steps to recover economically. Thus, the global market cannot deny a place for these 'Asian Dragons', because these countries are growing at a tremendous pace to the extent of being capable in emerging as global market leaders.
Many perceive a car mechanic and an auto body repairman as the same person since they both attend to vehicles. The truth is that the two carry out different roles in car attendance but they are both beneficial. A car mechanic is one that you visit to repair your car whereby they are required to attend to the damage in a very short time moreover mechanics are independent or self-employed. An auto body technician is a trained person who can perform so many duties related to a car including a mechanics role to repair, maintain and refinish vehicles. These technicians are highly based in automotive industries.
The automotive industry is one of the most important sectors of the economy for every country in the world. It involves a large number of corporations and institutions engaged in the manufacturing process of motor vehicles including designing, developing, manufacturing, marketing, and selling. It contributes to the global economic growth by generating a significant return and creating a ripple effect on supporting the supply chain as well as providing job opportunities for the skilled workers (ACEA, 2016).
The threat of new international entrants here in the United States for automotive manufacturing is extremely high, the rising global economy and the recent up comings of new foreign competitors with their capital, technology, management and marketing skills will soon be a threat for the U.S. automotive industries. You can see how this is noticeable if you look at the overall global market in terms of vehicle sales. But for right now the U.S. automotive industries are under no pressure from a threat of new international
For over fifty years, Toyota has established over 50 bases in 26 different countries and regions. Their automobiles have found their way into over 170 countries across the entire globe. In addition, Toyota has design and R&D bases in nine locations overseas, with this they prove that they have achieved consistent globalization as well as localization. The most important part in any Toyota base is the quality assurance. They don’t stamp their product with “Made in the USA” or “Made in Japan”, but instead opt for one label for all: “Made by TOYOTA.” This shows that the product is made in the “Toyota Way.” To achieve this, the company minimized support that comes from Japan to let each of their foreign locations become self-reliant. For example, a Toyota plant recently began production in Texas has made maximum use of its sibling’s experience in Kentucky which has been cultivated over the past 20 years. Toyota believes that in order to reach their goals is through educating people. Multiple Global Production Centers have been built within Motomachi Plant in Toyota City, in United States, the United Kingdom, and Thailand to carry our corresponding activities in the Asia-Pacific, European, and North American regions. To promote the “Toyota Way”, the Toyota Institute established an internal human resources development organization in North America, Europe, Asia, Africa and Oceania. As you can see the pros of the globalization of Toyota are endless. This company alone has created millions of jobs across the world. Winners are not only the workers, but also the buyers, without globalization Toyota automobiles would only be available in Japan. Many people, including me, see globalization of this kind as a beneficial and advantageous result. Toyota companies have not only created jobs for thousands if not millions of people, but their
This paper examines the expansion of General Motors overseas in its various phases, as well as triggers for internationalization and the problems faced during the process. The paper also considers what benefits have been achieved through international growth, and how the company can be classified with regards to Bartlett and Ghosal’s 4 typologies. Finally, the paper discusses the concept of a “world car,” meeting the demands of customers across the globe.
American automobile industry has striven through the years with excellence and great dominance both in America and in the global market. The history of it global dominance could be attributed to many factors which include global acceptance of American cars and brand superiority. However, American automobile industry has not strived without major challenges that include: political, global competition, technological, economical, and environmental challenges.
The 21st Century has witnessed Asia’s rapid ascent to economic prosperity. As economic gravity shifts from the Western world to the Asian region, the “tyranny of distance [between states, will be] … replaced by the prospects of proximity” in transnational economic, scientific, political, technological, and social develop relationships (Australian Government, 1). Japan and China are the region’s key business exchange partners. Therefore these countries are under obligation to steer the region through the Asian Century by committing to these relationships and as a result create business networks, boost economic performance, and consequently necessitate the adjustment of business processes and resources in order to accommodate each country’s
First is the language communication problem. Thai is the official language of Thailand, all Thai laws and regulations are written in Thai, and this brings difficulties to foreign investors. And in local culture, people generally emphasis on the status and relationships, so it will increase the foreign investment in intangible costs.
The dramatical change to pro-business policies attracted more and more foreign investors to create or move its manufacturing plant to Malaysia, result in its export being larger than that of import into the country.
There are times when you find yourself in a fix, with the car suddenly dying on you, while on the way to work. To your dismay, you realized that it’s out of warranty, but you still need to have it fixed immediately, as it is your only means of transport. You did the next best thing, and have it towed towards the nearest repair shop to get an estimate of repair. The mechanic calls later, to give you a litany of parts that needs to be replaced and repaired. The list seemed endless, and you get shock by the amount involved that you have to shell out. You then wonder if the mechanic is just trying to swipe a few bucks from you, since you don’t understand anything about cars.
The American Automotive Industry, popularly known as the U.S. Automotive Industry is one of the most rapidly evolving industries in North America. It is generally oligopolistic with a few players who in the past have been known to avoid price competition among themselves. The industry consists of industries manufacturing vehicles, car parts, replaceable parts and those engaged in assembling parts into complete models. However, the most dominant players in this industry are the vehicle manufacturers. The players design various models, produce the various parts that each model needs and assemble them into a finished product before availing them to the market. General Motors, Chlysler and Ford motors, dominate the U.S. Automotive mobile. They are popularly referred to as “The Big Three”.
Spatz, J., & Nennenkamp, P. (2002, January). Globalization of the automotive industry-traditional locations under pressure. Retrieved January 14, 2012, from http://www.uni-kiel.de/ifw/pub/kap/2002/kap1093.pdf
Manufacturers have trained and developed a highly-skilled workforce, producing quality products for home as well as international markets. Automotive industry supports over 2 million European jobs and with an additional 10 million citizens employed with its associated industries. Exports are estimated at over €70 billion per annum.