Industry Readiness for Going Global 1 Assignment

Industry Readiness for Going Global 1 - Assignment Example According to the Ft reporters, the United States of America auto mobile industry went from a boom to a low after the 2007/2008 economic crisis (Ft Reporters 2013). This is so since the automobiles sales from the United States of America industry fell to a record less than nine million from a high 16 million in 2005. However, after economic policies were adopted by the government the industry is slowly getting back to its feet (Lorenzo 2011). As one can see in both 2009 and 2012 China is the highest producer of vehicles in the international market. It is then followed by Japan. One notices that in the year 2009 the number of vehicles produced was low (OICA (2013). This can be attributed to the financial crisis of 2007/2008 which affected almost all players in the industry. However one notices that the USA and Germany were affected the most concluding that the crisis affected the industry most in Europe and the USA. However by looking at the statistics in 2012, the industry in the United States is recovering and shows promise of increasing in its sales and production in the futures. From the charts above, it is within reason that the key companies in the industry in the automobile industry are Volkswagen, Toyota, Hyundai and GM. However, there are other companies rising fast. Such companies include Nissan, ford and KIA. Key competitors as derived from the statistics include China, USA, Japan and Germany. Compared to its competitors, the USA automobile has various factors that give the industry an upper hand when competing with other industries in the international market. Government support is heavy in the USA unlike in other countries since the government offers loans to automobile companies. For instance, companies such as ford were lifted out of the economic crisis as a result of incentives from the government. Another advantage the USA has is that most of the citizens are loyal to home brands thus a huge