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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Tahir Ishaq                                                                                P25557

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).

Here are statistics produced by Autoliv Inc concerning their standings in the global market:

North America 32%

Europe 51%

Japan 9%

Rest of the World 8%

Also the head office told Autoliv they had to cut prices because the OEM wanted lower prices. This meant that Autoliv had to create competition within the group between C-Class and A-Class companies.

They also wanted C-Class companies to follow the A-Class companies around the world.

However, Autoliv knew in the first 3 years they would make a loss, the 4th year they would break even and in the 5th year hopefully make a profit.

Short term goals

 

  • Autoliv want to enter the export market.
  • Want C-Class companies to follow the A-Class companies around the world.
  • Autoliv know s they are going to make a loss in the short-term.

Medium term goals

  • Hope to develop their market, improve their market share and hopefully break even.
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Long term goals

  • Autoliv want to become a global company, MNC (Multi-National-Company) and hope to make a profit.

  • With its successful growth strategy, Autoliv has become the global leader in the $13 billion automobile occupant restraint market. Airbags account for 52% of that market, seat belts for 28% and electronics for 20%.

  • Autoliv estimates that it currently has approximately one third of the global market for car occupant restraint products and that it has a some what higher global market share for airbags than for seat belts. For side airbags, which were invented by Autoliv ...

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