- The automotive industry is one of the oldest industries in the United States, with a long history of successes and failures. Increasing pressure by government agencies and special interest groups to adopt "green" practices and move away from carbon-based fuels are a few factors leading companies to change their business strategies. International automotive strategies have undergone some significant changes with the implementation of technology in the business environment. Companies can strengthen their operations by diversifying operations into international markets.
- Automobile manufacturing is a process that has long been completed domestically and internationally. Companies typically use international locations due to their favorable labor markets and lower operating costs. Automotive manufacturers should look for emerging markets where countries are looking to add more stable companies into their economy. Emerging markets are of the best bet because they are in the early economic growth stages, allowing companies to dictate their needs and business practices in these markets.
- Selling vehicles overseas is often very different than selling vehicles domestically. International countries often have specific consumer needs relating to automobiles, meaning companies cannot use one strategy to sell vehicles in numerous international markets. Companies must learn the needs and wants of customers, perception of automobiles, industry buzzwords, competition and other issues. Strategies can include selling low cost, economical vehicles or going with a higher quality or expensive model. Each strategy depends on the international market and current economic conditions.
- Parts manufacturing is often much different than complete automobile manufacturing. Companies can diversify their parts producers to ensure they receive the lowest cost possible for these replacement items. Strategies include purchasing intermediate materials from international countries and assembling the items domestically or purchasing complete finished goods from an international supplier. The first option helps companies with exclusive production methods to make parts using their own processes without giving away company secrets. The second strategy typically results in the lowest cost for goods need to repair automotive vehicles.