Gaz Group Russia: Brief Introduction to the Case´s Situation
Autor: Sharon • February 3, 2018 • 796 Words (4 Pages) • 956 Views
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in other words, the suppliers are extremely susceptible to the demands, requirements and changes of the automobile manufacturer and hold very little power.
Power of buyers
In this industry exists two kinds of buyers, commercial companies and individual consumers. Buyers have the power to decide which car want to buy also have the power to seek the best dealer of the same manufacturer or to a completely different manufacturer, customers can easily, and with little cost, switch to other dealer; individual consumers have some influence over price within a given dealership, but little power over manufacturers; but dealers buyers purchase their car inventory from the manufacturers through special financing and if the dealers don’t purchase to the manufacturers, they can be affected, so the power of buyers is high.
Competitors
This industry is considered to be an oligopoly, which helps to minimize the effects of price based competition, different companies are providing different incentives to attract customers to purchasing their own vehicles; and the winning competitors will be those who use newly available technologies to capitalize on this trend, designing vehicles which meet the expectations and necessities of their customers. So in this tenor, the competition is fierce and rivalry will only increase over time.
Solution of the case
GAZ Group has all the capacity to provide service and spare parts supply to the new markets, counts with newly technology and financing stability and the best way to do this is cooperating with the leaders of the global automotive industry; set up joint ventures with foreign manufacturers to allow GAZ Group to modernize its capacities and provide the personnel with training in the best standards of the global automotive industry for its product development and participation in localization of foreign brands. The company has to negotiate with its potential partners through licensing agreements with existing manufacturers, regarding distribution of its products.
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