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GERMANY – PERU
AUTOMOBILE INDUSTRY
Docente:
MSc. Grecia Elizabeth Pardavé Chiong
Estudiantes:
d) Long term orientation
They demonstrate an ability to adapt traditions easily to changing conditions. In the case of Peru, Peruvian culture is more normative than pragmatic. People in such societies have a great concern to establish the absolute Truth.They show great respect for traditions
a) Individualism / Collectivism
Germany: Its society is individualistic, characterized by small families that are related to each other, that is, between parents and children.
Peru: It shows a collectivist and conformist society
e) Power distance
In Germany, the communication and leadership is respected by experience. In the case of Peru is a society that accepts and expects power to be unevenly distributed, in this culture the boss thinks he is superior to his employees and demands respect.
b) Masculinity / Femininity
Germany: it is a society highly inclined to masculinity, it is a society driven by competition, obtaining achievement and success is defined by a winner.
Peru: it is a female society, they have a preference for human and family contacts
c) Uncertainty avoidance
Germany shows that it has a higher level of management.
Peru, the lack of awareness, responsibility and lack of rules has generated an increase in the mortality rate and impacting the country's economy.
Source: (Hofstede Insights, 2020). .
f) Indulgence
Germany is a society that identifies itself as a culture that suppresses the satisfaction of needs and regulates through strict regulations and little interest in enjoying free time, because they feel that indulging is wrong. While in Peru it is the opposite, individuals tend to enjoy life and fun.
German consumer behavior
How to make business with germans?
In 2018, the production of vehicles decreased considerably according to information from the Federal Statistical Office (Destatis), likewise, production was lower compared to the first half of 2018, in addition the entire manufacturing sector in that same semester fell two percent in production and this may be related to the fact that in other industries production also decreased because they are intertwined. The German automobile industry produced approximately four hundred and twenty-six billion euros of total sales in 2018. The gross production value in that year in relation to car manufacturing averaged four hundred and ninety-eight billion euros (Statista, 2020).
Economic Cycle
GDP - 2020
Source: (International Monetary Fund, 2020).
All countries around the world continue to struggle to respond and recover from the pandemic
Source: (International Monetary Fund, 2020).
The map shows projected world GDP by 2021, most countries would improve, according to the International Monetary Fund.
Source: (Statistisches Bundesamt ( Destatis), 2020).
Germany’s GDP is affected by the pandemic,the economic cycle is in recession in the second quarter, with a negative depression of 11.3% the lowest since 2009.
Source: (Eurostat, 2020).
The image shows the gradual increase in Germany's unemployment rate over the past three years, the last increase of 4.2%, represents the highest rate for four years
Source: (Trading Economics, 2020).
Consumer spending in Germany fell to 374,09 million of euros in the second quarter of 2020 in purchase with the first quarter it reached 419,94 million euros
Source : (Trading Economics, 2020).
The image shows that 2018 was favorable for foreign investment in Germany, but in 2019 there is a reduction of about 50% due to the Bretix and the stagnation of the automotive industry and in 2020, it continues to fall due to the pandemic.
Germany Foreign Direct Investment Augost 2019 – June 2020
Foreign direct investment in Germany increased by 4,217.35 million euros in June, representing a growth of approximately 57% compared to the previous month.
Source : (Statistisches Bundesamt (Destatis), 2020).
The image shows the trade balance of Germany over the past three years and the changes recorded. March and May 2020 are low as a result of the covid pandemic, then recovered in June, with exports of medical and pharmaceutical products.
The PESTEL analysis gives us the result that Germany is a country with a high level of education, so there is no place for corruption, this being valued by both parties, the company must have high ethical standards. Germany is also a great contributor to improving the environment by promoting good customs.
Federal Republic of Germany, consists of three executive powers, Legislative and judicial (Central Intelligence Agency, 2020).
Germany is part of the Trade Agreement between the European Union (Central Intelligence Agency, 2020).
It ranks fifth in the world's largest economy.
Leaders in the export of mainly machinery, vehicles, chemical products and household appliances (Central Intelligence Agency, 2020).
It has a highly skilled workforce, but faces significant demographic challenges (Central Intelligence Agency, 2020).
Low fertility rates and a large increase in immigration (Central Intelligence Agency, 2020).
Germany is a modernized and multicultural country. (Macro Data, 2020).
The family is an important entity in the life of Germans, they respect and value it very much (Macro Data, 2020).
Germany is a leading country in sport, participating in activities such as the FIFA World Cup, Formula One, the Olympic Games, motor sports, among others.
It manufactures motor brands such as BMW and Mercedes.
The German government supports science and technology by hosting national laboratories and encouraging the creation of private ones.
Germany's greatest strength is the automotive industry.
It has 60 cargo ports of which the main ports in Germany are: Hamburg, Bremerhaven and Kie.
The use of bicycles is encouraged to reduce carbon dioxide.
The German government constantly investigates to find solutions to the problems that afflict the planet.
Germans prefer organic products.
They are people who do not have access to corruption, so they highly value intellectual property.
It has a specific code, "commercial code", in which all the duties and rights of the parties involved are established.
In the same country Volkswagen is committed to being a company that uses raw materials responsibly, it is a company that within the same country focuses on human rights for workers, better working conditions and protecting the environment throughout the production path in your products (Volkswagen AG , 2020).
Volkswagen is a company with participation in the German market, if we see the cost of an average car in Germany is thirty-three thousand six hundred euros, the main car models among the buyers of new German cars were Volkswagen and being the most purchased models the Vw Gold, the Vw Tiguan and the VW Polo (Statista, 2020).
Strategy for price introduction, this strategy is for the sale by introduction of its new models, also the promotion strategy at the point of sale for its customers within its subsidiaries in Germany, incentive promotion programs by customer reference (Volkswagen AG, 2018).
Volkswagen Brand Short Channel
Peru
Germany
Volkswagen is one of the most successful car manufacturers in the world. It maintains its facilities in 14 countries, where it produces vehicles for clients in more than 150 countries. The strategy applied by the Volkswagen brand is exclusive.
Arnstadt, Alemania
+49 3628 74221420
Munich, Alemania
+49 89 3230060
Weinheim, Alemania
+49 6201 9890
Frankfurt, Alemania
+49 69 8700167000
Frankfurt, Alemania
+49 69 8700163000
Source: (KBA Kraftfahrt-Bundesamt , 2020)
Source: (Volkswagen AG , 2020), (BMW Group, 2020), (Daimler, 2020).
Volkswagen Golf and Mercedes Benz C- class
Potential new car buyers, by age in the car market 2020
Source : (Statista Global Consumer Survey, 2020).
Population in Germany 2020
Source: (Volkswagen Group, 2020), (Mercedes-Benz, 2020) (Deurschland in Zahlen, 2020), (Statista, 2020), (Orth, 2020).
Source: (Central Intelligence Agency, 2020).
Purchase situation analysis
Effects on the purchase of the car in Germany
Probability of using platforms to buy cars
Source: (Weßner, 2020).
Payment method for buying a car in Germany
Source: (Bain & Company, 2020).
Source: (Aral Aktiengesellschaft, 2019).
Direct competition analysis
German Electric Car Market in 2020 (Half Year)
Source: (KBA Kraftfahrt-Bundesamt , 2020).
Electric Car Brands in Germany in 2020 (Half Year)
TESLA
Source: (KBA Kraftfahrt-Bundesamt , 2020).
If we refer to products that compete indirectly, we can talk about substitute products such as motorcycles, in Germany there is indirect competition because it is a more economical mode of transport at the time of purchase and for maintenance, which are substitute products, the leading brand is BMW in 2019, with a 22 percent market share (Dervisevic, 2020)If
In complementary products we have different types of products and services offered by the Volkswagen company which are from, accessories for cars such as mirrors, tires, rings, spare parts, mirrors, carpets, cleaning products for the car as well as all kinds of garments and accessories for men and women (Volkswagen AG , 2020).
Fleet control services, where they provide monitoring to all types of fleets where they can digitally control gps, control of gasoline consumption. (Volkswagen, 2020).
Figure 18 This graph shows the different recovery speeds of your sales of China, Europe, North America and South America in percents. Data Source: (Financial Results Januay to June, 2020).
Figure 17. This graph shows the different recovery speeds of your sales, North America with -25.2 percent, Europe with -38.1 percent, China with -23.0& percent and South America with -40%.8 percent. Data Source: (Financial Results Januay to June, 2020).
Source: IHS Markit, Refinitiv (Chazan & Arnold, 2020).
Figure 17 The image shows Germany's economic recovery.
Since 1979 the Volkswagen Jetta has been produced by the great German car manufacturer, Volkswagen and has been marketed for six generations in various ways such as Atlantic, Fox, Vento, Bora, City Jetta. , Jetta City, GLI, Jetta, Classic, Voyage and Sagitar. From time to time, Jetta has problems in different parts of the structure such as brakes, engine, fuel system, transmission, body and paint, fuel leaks and car fires with a cold engine (McCoy Kristen, 2020).
Advantage of the Jetta app
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Honda Toyota Nissan
Range of 30 to 39 (Milleninials), which means that they are the most participatory ages in the group and those 40 to 49 these people are Generation X.
Source: (Volkswagen, 2015).
Figure 20 The image shows the age range of Volkswagen workers, with a higher participation of men in all age ranges
Also workers from 50 to 59 and 60 and over Also workers from 50 to 59 and 60 and over who are within the Baby Boomers generation, who are considered people committed to their work.
the workers who belong to the ages of 20 to 29, which are Generation Z, closely related to technology, influenced by social networks
CONCLUSIONS
As innovation projects continue, it is important to retain customers by addressing their complaints and needs to improve product quality. Due to the problems that have been reported over the years, it has caused the public to have mistrust or lack of security when acquiring this product, also the decrease in its sales. This project aims to respond in a timely manner to complaints submitted by users, therefore improvement actions are being proposed through the SMART formula, using a digital tool such as the App, exclusively for the Jetta model that aims to serve complaints, obtain information from users to improve the quality of the car, in addition the user will be informed of the news of the car, benefits such as discounts, application of guarantees and other options that will improve the user's perception of the car and recover the sales of Jetta.
RECOMMENDATIONS
The increase in digitization for purchases could also be used by car manufacturers to design easily accessible web pages where users can obtain the information they need to purchase a car.
This project is coupled with the new trends that are being applied nowadays as a result of the health emergency that the world has been going through, since by security measures established by the government, and in order to avoid the agglomeration of people or contact With each other, this application is ideal for solving complaints that customers may present, and complying with providing immediate support, it is also an effective way to attract potential new customers, continue with loyalty and provide information with greater clarity.