Your board is placing pressure on your organization to engage in the international auto market. For your review (see attached spreadsheet), your Business Development Department has gathered data on two markets Atlantic and Pacific and, specifically, 3 firms in each market. The Atlantic region is known for vehicles with excellent styling and features, while the Pacific region is known for lower materials and labor costs for production. Although these regions may bear some resemblance to actual regions, you should carefully analyze the data and vehicle information provided and not rely on perceived similarities with actual countries or regions. In other words, use only the data provided to you in the spreadsheet and the simulation to develop your analysis.

Questions

1. Should your firm pursue importing or exporting? Which company should your firm partner with and why? If you are recommending an import alliance, which vehicle/s will your firm import and why? If you are recommending an export alliance, which of your vehicle/s will you export and why? Be specific and detailed in your response. Use data to support your recommendations.

2. Identify a specific business-level or corporate level strategy that your chosen option (importing or exporting) helps your firm pursue. What are the benefits of that strategy for your firm (e.g. value creation along the value chain for business-level strategies, economies of scope and/or scale for corporate level strategies)? Provide specific evidence to support your response.

ipplied on vehicles being imported to that market ipplied on vehicles exported from that market orice-sensitive market. Companies: Xihuan, Yige and Zao Motors, National Motors and Oceanic Overview Pacific Atlantic Vehicles Vehicles by Firm