It must strengthen the global sales outside Europe especially in the US * In the US, Audi has a bad reputation in reliability, having a buggy electronic system and an outdated sales and marketing network * Audi’s dealerships in the US mostly share the floor space with other brands in the store * The other brands have better lease terms * They have a bad image because of the 1980s sudden acceleration scare
2. Areas of Consideration * Audi has one 6 basic models, compared to BMW that has 12 and Mercedes Benz that has 13. * VW is hurting the investment campaign of Audi * Audi’s sales have matched BMW and Mercedes Benz’s sales in Europe but not in the US and other countries.
- The US dollar is weak
3. Alternative courses of action
I wouldn’t change a lot of things that Audi has been doing to catch up with BMW and Mercedes Benz because according to the case they have been doing a good job in trying to match their rivals. But, I would have had more exclusive Audi dealerships. This is so that the customers would not look for other brands in the store and it would make the cars seem more luxurious having its own floor space.
According to the case, Audi is a brand that can compete with its rivals through quality and affordability. They have a chief executive that has passion and a vision for the future. Their employees believe in their product and are proud of it. They just cant crack the US market which is being dominated by its rivals. They did a good job in reinventing themselves being the benchmark of luxury cars but it took them a long time to upgrade their vehicles so the other brands caught up. Their problems are mostly external due to the lack of promotions and their bad image.
5. Conclusion and recommendations
They should fix their leasing packages or have incentives to compensate for the bad economy. A weak dollar means a lower demand for luxury. Even if the price goes up as