Question

What is Skoda Automobile Company’s historic global strategy? Why did the company enter into foreign countries ?

Answer 1

SKODA Auto, commonly called skoda , is a chech the tomobile manufacturer founded in 1895 as Laurent Klement and head garter in Maled a Bolested, hech Republic. The skoda enter manufacturing market in 1890 and inètially they made bicycle not cars. Then company became the first manufacturer of motorcycles after that in 1925 skoda starked manufactured cars the 1101 series. It was only Care making company in Czechoslovakia. The basic aim of Company was resonable and affordable price of cars so it kept the cans En Simple and sober manner but because of it company had faced lot of preoblems. By 1990 the Czechoslovakia management of skoda was looking for a strong foreign partner to promote and make brand betten. Volkswagen AGL VAG) the langest Can manufacturer in Europe was selected among all of other rivals because of its prestige for its brand's strength, quality and reliability in market and faith for L of customens. VW breands in the heart of customens. By 1991 300l. Stake By 1991 of company was taken by volkswagen who concentrated a employee training to make them up to the internati standards. The company invested E2 billion in the new model for latest technologies and after ten years in 2001 the whole business was took over by vw.

Global strategy Skoda was the laughing stock of the automobile toord en the OK 1A kodas image was thitially slow to improve a mason turnabout was achieved with the ironic, it is a Å, Koda, honest" campaign. Important strategy is set up stratagic partnership with suppliers and distributor. Loyal customer base by providing good servicing, Expanding Customer base by a wide range of attractive features. with Ets products. Reinforce to improve current Position. Development markets in eastern Europe and Asia Reason of foringn market Expension : Accoreding to farchang (2001) the way in which some companies tunn from being parcely domestic Company th terms of marketing goods and rervices into international archas been the subsect of research during the last three decade. Indeed, it is not an easy hair to ene pand into foreign market, especially if it to has little or nothing in common with a domestic market. It is a process associated with a gre deal of problems and challenges. The reason fine were abroad as the following they do so to obtain things that are not available at home are two types it expansion Proactive motivate and Reactive motivation. Unique product, Technologus advantages, Excalurive information it available at home. There Technological alwlive information, Tax benefit

Economic of scale and profit advantage has come unden proactive motivation Competitive pressure, over production stagnant on declining domestic sales, excel Caprecity has comes under Reactive Motivation. Skoda initially entered the business with the streategy of reasonable price of cans for the castomers is very low price. The new strategy was customers satisfication along with new innovative technologies for the care making it lovlier and quality was great and the new car was engineered with practically and the wakce for money. The new brand value of Skoda looked for fuel efficient and eco friendly Cans. Recent market survey tells that the skada cans are ty top lo cars.