How to Adjust Global Market Strategy in the Automobile Industry? What Are the Consequences of Globalization for Enterprise Risk Management?
In today's era of economic globalization, the automobile industry faces increasingly complex and varied market environments, requiring continuous adjustment of global market strategy to adapt to changing circumstances.
The primary consideration when adjusting a global market strategy is the dynamic change in market demand. Consumer preferences for automobiles exhibit significant differences across regions, influenced by factors such as economic development level, cultural background, policy regulations, etc. For example, in developed countries, consumers place greater emphasis on environmental performance, smart configurations, and high-end brand images; whereas in developing countries, price-friendly, practical cars tend to be more popular. Companies should conduct in-depth research on regional market demands and adjust product layouts accordingly. Take Toyota as an example: it developed large-space and high-performance pickup trucks for the US market and focused on new energy vehicles and smart connectivity technology for the Chinese market.
Regional trade policies are also factors that cannot be ignored when adjusting a global market strategy. The rise of protectionism, changes in tariff policies, etc., will all impact the automobile industry's globalization layout. Companies need to closely monitor changes in international trade policies and optimize production and sales layouts. For instance, some companies choose to establish local production bases in target markets to avoid high tariffs. Tesla built a super factory in Shanghai, China, which can reduce production costs and avoid the risk of tariffs caused by US-China trade frictions.
Global market layout has significant implications for enterprise risk management. From a supply chain risk perspective, single-region supply chains are more susceptible to natural disasters, political turbulence, etc. By adopting a global layout, companies can diversify their supply chains and reduce the risk of supply chain disruptions. For example, automobile companies establish component suppliers in different countries and regions, so that when a supplier in one region experiences issues, other regions' suppliers can quickly fill the gap.
In terms of market risks, a global layout can help companies reduce dependence on a single market. If a company only focuses on its domestic market and a market downturn occurs, the company's operating performance will be severely impacted. By expanding into international markets, companies can balance sales across different markets, reducing market risk. The following table compares the risks faced by companies with different layout modes:
Layout Mode | Supply Risk | Market Risk |
---|---|---|
Single-Region Layout | High, vulnerable to local disasters and policy changes | High, dependent on a single market |
Global Layout | Low, supply chain diversified | Low, markets diversified |
In conclusion, automobile companies must adapt to the tides of globalization by adjusting their global market strategy in response to market demand and trade policies, while leveraging globalization to effectively manage various risks faced by the company.