Audi Strategy 2025 Case Study

Audi is currently pursuing its Strategy 2025 which aims to grasp the transforming megatrends of the automotive industry: digitalisation, sustainability and urbanisation. These three objectives surge due to the industry environment. As the main car manufacturers converge in terms of targeted and supplied market segments, their differentiation lies in exploration and exploitation of new technologies and urban development. By such, manufacturers need to get involved in digitisation in order to create a sustainable competitive advantage which will impact and change future urbanisation.

The automotive industry is currently facing big challenges. The most important aspect for any car manufacturer is to increase sales and remain profitable. Commonly,
This brings forward a second problem which arises from limited room for additional costs savings and returns for an increased supply given that processes are already working with lean, continuous and quality systems. This limitation in production leads to a third problem which is the surge of new suppliers such as partly 3D-printed automotive parts. Collaterally, a fourth problem is that besides these new types of vehicles, some companies are seeking to establish themselves in other transportation services besides cars - such as Ford. Finally, all these complexities of the industry arise mainly because customer demands for customisation are higher than before; also because innovation makes these demands feasible and thus real. This could easily affect profitability in the short
At the announcing day, the CEO Rupert Stadler said: “We will show the world everything that defines Vorsprung durch Technik and our brand by investing a multi-billion dollar amount into the electric car production”. Audi AG stresses the necessity of focusing on the future viability of the ecosystem. Therefore, the company implements sustainable processes along the entire value chain to provide customers with sustainable products and services. This generates four main strategic targets for Strategy 2025: Profitable Growth; Agility; Integrity, Respect & Collaboration; and Corporate image. Through these, Audi seeks to achieve their three main objectives of digitalisation, sustainability and urbanisation. With this in mind, below are a selection of analysed questions which interpret the theories and models studied in class in order to compare Audi’s current standing, and where it should position itself in order to gain a sustainable competitive