A Company's Competencies in Its Primary Industry

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  • Topic: Audi, Turbocharged Direct Injection, Innovation
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  • Published : March 30, 2013
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Chapter 3

1.Identify whether your company has a competitive advantage or disadvantage in its primary industry. (Its primary industry is the one in which it has the most sales.)

The competitive advantage which Audi has is technology; Audi is regarded as a pioneer in the development of LED technology and leads the competition by a large margin in this field. FSI and TFSI are Audi’s innovative, high performance petrol engines and TDI is Audi’s super-efficient diesel engine, more power, less fuel, more output and torque.

The disadvantage is some of types sedan’s (A6) engine burns too much oil because new technology. If they can go over it, Audi will come out of the gates with a flood of new customers.

2. Evaluate your company against the four generic building blocks of competitive advantage: efficiency, quality, innovation, and responsiveness to customers. How does this exercise help you understand the performance of your company relative to its competitors?

As a global company, Audi have all four competitive advantages. From this exercise, I deeply understand the reason why Audi is doing so good; first of all they have excellent technologies, and outstanding people innovating new models. But compare with Lexus, the responsiveness to customers part need to improve.

3.What are the distinctive competencies of your company?

Quality – the core competence of the Audi brand. Quality made by Audi begins with the selection and use of materials, whether natural leather, high-grade woods, aluminum inlays or new, dirt-repellent materials in the interior – Audi always sets the highest of standards so that they not only meet, but also exceed customer expectations.

4. What roles have prior strategies played in shaping the distinctive competencies of your company? What has been the role of luck?

Because of Audi company focus on China market last 10 years, demand for premium autos in China to grow as much as 20 percent to 30 percent. That would indeed be good news for Audi which currently leads BMW and Daimler AG in luxury auto sales in China. Is bot luck, before Audi start running Chinese market, their reputation already pretty high, plus they innovated TFSI and FSI two type engines, help them lay the foundation.

5.Do the strategies your company is currently pursuing build on its distinctive competencies? Are they an attempt to build new competencies?

Although, Audi has already have tons distinctive competencies in currently market, but they also start to work on E-Tron program which is new concept technology for vehicle. One of innovation they made is drive itself into a parking lot, park itself, and drive back out to meet you with the press of a smartphone button, Audi’s proof-of-concept has a couple of things that make it stand out from other autonomous vehicles, such as Google’s self-driving Prius and even Toyota’s automated Lexus research car. First, it only uses technology that already exists and that has been implemented in cars that are on the road today

6.What are the barriers to imitating the distinctive competencies of your company?

The barriers to imitating the distinctive competencies of Audi are technology, brand image, quality and each year they will Issue a heavyweight products. The special technology they are using in safety system, control, and driver assistance. Otherwise, from the news “Audi reveals seven future technologies in development” Audi company is working on e-tron program. Based on those reasons, I think that is pretty hard barriers to imitating from the small company.

7. Is there any evidence that your company finds it difficult to adapt to changing industry conditions? If so, why do you think this is the case?

While, I would say the evidence that Audi finds it difficult to adapt to changing industry conditions is they have too much big manufactory already, if the vehicle’s mode of production starts to change, it will be the big problem for Audi, hard to manage...
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