The name “Skoda” in the Czech language means “A Shame”. It is the first car ever produced in the Eastern Europe. It is a small business that eventually became Skoda Automobile Company. It was formed in 1895 when Vaclac Laurin, a mechanic and Vaclac clement a bookseller, joined together to manufacture their first ever produced bicycle which is slavia in the town of Mlada Boleslav Czechoslovakia. Four years after, the company began to use motorcycle parts in producing motorcycle vehicles. The company used in diversification strategies specifically the related diversification which means adding new but related products or services.
Skoda auto first produced bicycles and then motor vehicles until they produce cars which has been made then motor vehicles until they produce cars which has been made them won numerous awards for producing quality automobile products and made them ,as the largest num of employer in the Czech Republic and open opportunities for employers. When bicycles are replaced by automobiles in many countries, cars were out of reach of the Chinese. As income .increases and tap tariffs on imported cars began to fall of Beijing’s accession to the world trade organization models began to flood the market and domestic producers were formed to cut their prices.
The government was encouraging the merge of many of these firms to achieve economies of scale. Industry projections suggested that the strongest potential growth in automobile sales would be in the countries of Asia, South America, Eastern Europe, and Africa rather than the countries or economies of Western Europe, North America and Japan.
Mergers of Automobile companies are being considered in China, and in February of 2007, Daimler Chrysler AG knowledge that it might have to find a partner due to the depth the crisis. The list of potential partners includer Renault SA and Nissan Motor Company. Nissan is interested in a North American Partner, Ford Motor Company could