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A full description of the export activates of the business and a Straight forward classification of the stage of international trading.

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Introduction

E2 A full description of the export activates of the business and a Straight forward classification of the stage of international trading. Autoliv started off making springs for underground trains and ship-bridge windows. After this they started making springs for the recoil system in Electrolux vacuum cleaners and springs for child seatbelts. Part of the company made pedestrian guidance systems, which was called tenser barrier. At this time the business was owned by CH industries but in 1991 the business went bust and was bought by Electrolux. Autoliv was then floated on the Sweden stock exchange so Electrolux could raise money to buy AEG. In 1998 Autoliv merged with mortem, a U.S company who makes airbag gas cylinders. In 2000 Autoliv decided they would concentrate more on the automotive area. They sold part of the business, the guidance systems and the tenser barriers. Today Autoliv has 3 chains of companies: 1. C - Class Company: This is where the components are produced 2. A - Class Company: This is where they assemble the components 3. OEM - Original Equipment Manufacturer e.g. Mercedes All of the Autoliv companies belong to group called Autoliv Inc. There head office is in Sweden. A full description of the export strategy of Autoliv Summary Autoliv had to make a global approach because they saturated the U.K market. At the moment Autoliv in number 1 in Europe (the E.U) , number 2 in the USA (NAFTA) and number 3 in Asia ( Tiger economies). ...read more.

Middle

This intermediary proved useful because they were -already in Estonia and also can share the costs. This provided Autoliv with minimal risk and they shared the costs and profits. Autoliv then supplied the springs to the Swedish A-class company from the Estonian C-Class company. There was a similar problem in Thailand. Autoliv could not the risk in moving a C-Class company to Thailand because of the costs involved. The A-Class company said the products were too expensive so the C-Class company did a joint venture with the A-Class company that was already there. The C-Class company rented space in the A-Class factory because of the low costs there. To do this a personnel from Autoliv in Milton Keynes went to Thailand and co-coordinated the move. Now the A-class company there supplies the springs to OEM such as Daewoo and Mazda. The last company Autoliv put a Factory on was Australia. Again Autoliv encountered problems, this time with the OEM, Toyota. Toyota rejected the plastic casing in which the springs are embedded because of cracking in the plastic cause by heat. Autoliv then had to make the casing with a special plastic that could resist the heat for the Australian OEMs. As you can see from the above an important element of Autoliv's strategy has been to establish joint ventures to promote Autoliv's geographical expansion and technological development and to gain assistance in marketing Autoliv's full product line to local automobile manufacturers. Total sales of Autoliv's joint venture operations to outside customers aggregated approximately $ 338 million in 2001. ...read more.

Conclusion

Assembly There was a similar problem in Thailand. Autoliv could not the risk in moving a C-Class company to Thailand because of the costs involved. The A-Class company said the products were too expensive so the C-Class company did a joint venture with the A-Class company that was already there. The C-Class company rented space in the A-Class factory because of the low costs there. To do this a personnel from Autoliv in Milton Keynes went to Thailand and co-coordinated the move. Wholly owned JV & Know-how contract Autoliv then wanted to place a plant in Turkey but soon discovered it was not going to be as easy to set up a business because of red tape, bureaucracy (They didn't understand dhow the government works). They then had to find intermediaries to help them. They employed a consultant (Know-how contract) and did a joint venture with an A-Class company (Joint equity). The consultant helped them out by finding them factories, legal aid and how the government system works, e.g. grants to set up the business. A classification of whether the business is at a casual, active, full or global stage of international trading. Casual Trading Casual Trading means selling goods by retail at a place (including a public road) to which the public have access as of right or at any other place that is a casual trading area. Active Trading This is when a company is trading and developing in other countries. Global stage of international trading This is when a company is at its peak and has succeeded in global trading all around the world. An example of this is The Coca Cola Company. Tahir Ishaq P25557 Pg 1 ...read more.

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