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A Company's Competencies in Its Primary Industry

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A Company's Competencies in Its Primary Industry
Chapter 3

1. Identify whether your company has a competitive advantage or disadvantage in its primary industry. (Its primary industry is the one in which it has the most sales.)

The competitive advantage which Audi has is technology; Audi is regarded as a pioneer in the development of LED technology and leads the competition by a large margin in this field. FSI and TFSI are Audi’s innovative, high performance petrol engines and TDI is Audi’s super-efficient diesel engine, more power, less fuel, more output and torque.

The disadvantage is some of types sedan’s (A6) engine burns too much oil because new technology. If they can go over it, Audi will come out of the gates with a flood of new customers.

2. Evaluate your company against the four generic building blocks of competitive advantage: efficiency, quality, innovation, and responsiveness to customers. How does this exercise help you understand the performance of your company relative to its competitors?

As a global company, Audi have all four competitive advantages. From this exercise, I deeply understand the reason why Audi is doing so good; first of all they have excellent technologies, and outstanding people innovating new models. But compare with Lexus, the responsiveness to customers part need to improve.

3. What are the distinctive competencies of your company?

Quality – the core competence of the Audi brand. Quality made by Audi begins with the selection and use of materials, whether natural leather, high-grade woods, aluminum inlays or new, dirt-repellent materials in the interior – Audi always sets the highest of standards so that they not only meet, but also exceed customer expectations.

4. What roles have prior strategies played in shaping the distinctive competencies of your company? What has been the role of luck?

Because of Audi company focus on China market last 10 years, demand for premium autos in China to grow as much as 20 percent to 30 percent. That would indeed be

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