Essay On Life Cycle Of Automobile Industry
This part of the report will analyse the life cycle of automobile industry in Ukraine, Turkey and Egypt. The life cycle of automobile industry shows a period of time during which a noticeable positive reaction of sales. It consists of four stages such as development, growth, maturity, and decline.
In Ukraine, sharp development of automobile industry started in 2010 after economic crisis, which arose in 2008 and resulted depreciation of Ukrainian currency. Ukrainian car manufacturers produce various automobile brands such as Auto-Rus, HAIAZ, KRASZ, LARZ, LUAZ and ZAZ which are quite popular in Ukrainian society. Nowadays, Ukraine develops its automobile industry …show more content…
Beginning profitable operations of foreign investors in Egypt requires costly expenses. Although, producing and distribution of products in Egypt will allow the organisation to maximize its sales in maturity stage (Linkedin, 2016).
For Ukrainian automobile industry growth stage also requires huge investments. Otherwise, automobile manufacturers will not be able to maximise their sales in Ukraine. The growth stage of this industry in Ukraine requires long – term duration due to competitiveness of Ukrainian car market (EY, 2014).
Whereby in Turkey, growth stage will be higher than in Ukraine as automobile services of Dongfeng are quite similar to Turkish automobile services. At this stage, as the Dongfeng is successful in various international markets, growing demand will create sales growth in Turkey. Moreover, a turnover and revenue will be also positive for Dongfeng from Turkish industry (Invest, 2015).
When it comes to Egyptian automobile industry the growth stage of the life cycle will be longer because of upgrading in services, car models and other features. Dongfeng will need to expand its geographical sizes and continue to disperse during the maturity and decline stages (Linkedin, 2016). …show more content…
As each country shows its advantages for Chinese car manufacturers. One of the main reasons of industrialisation for Dongfeng is profit seeking. A big number of markets provide a good opportunity for Dongfeng to increase its sales and improve market share. For example, Ukrainian public transport is weak compared to Chinese, therefore, it is will be a great motive for Dongfeng to export their electrical buses and trolleybuses to Ukrainian market. Expanding market share of Chinese products will motivate Dongfeng to export their products to Ukraine. Another motive of internationalisation for Dongfeng is a brand name. Thus, Dongfeng will be able to improve its image by providing its vehicles for famous car showrooms, for instance, ZAZ, UAZ and VAZ (Practice and theory in systems,