Industry Life Cycle

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Introduction The major aim of this essay is to address the two models that are industry life cycle and the cultural web with respect to the car manufacturing companies that are BMW and Audi. Background and context There are a number of tools available that help an organization in understanding its competitiveness in the market. The industry for applying such concepts has been taken as car manufacturing industries. The two specific companies are considered for these purposes are BMW and Audi. BMW and Audi are the big brands in the automobile industry and they also have their operations worldwide. For the purpose of this essay, all the models of the cars of both the companies will be taken. A general view would be created to understand the…show more content…
The two models that are industry life cycle and culture web can be applied to any industry; likewise, these models can also be applied to the car industry. The application of industry life cycle and cultural web for BMW and Audi are discussed below: Industry life cycle in BMW and…show more content…
It starts right after the product is ready and is launched in the market. It is embraced with a number of stages that are pioneering phase, growth phase, maturity and decline phase. It clearly states that when a product is launched in the market the industry offers it a pioneer chance wherein it can advance its sales and reach to the maximum number of customers. In pioneering stage, the company is embraced with high innovation and differentiation of available assets (Best, 2012). In the second phase, if a company wants high growth, then it needs to give low bargaining power to the customers and the threat of new entrants shall as below. The case here with Audi is that due to its strong brand value it is not required to exert efforts and the literature suggests that it directly reaches to maturity phase. In this case, it can be observed that the concepts of industry life cycle are not true to a very great extent. Thus, with Audi, the case is that it reaches the third stage right after the first stage. But the concept of industry life cycle claims that no product can reach to maturity stage without crossing growth stage. The analysis also suggests that the company is at its maturity stage. In case of BMW, the industry life cycle and its application are also different. The industry life cycle does not take into consideration many aspects, such as brand value, brand awareness and so on and thus, there

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