Audi has considered the economic environment in its international business strategy over the last five years. Audi expanded and developed international markets that are characterized by high economic growth, high levels of disposable consumer incomes, currency stability and low-interest rates (Johnson, Whittington and Scholes, 2011, p 376). Markets such as Japan, China, Belgium, and North America are currently experiencing high economic growth thus Audi will increase its revenues and profitability in the international markets. The international business strategy of Audi has catered for the social environment trends over the last five years.
The international market has experienced high growth in educated and young professionals who desire luxury cars as a symbol of social status. In addition, the international market is currently experiencing changes in attitudes towards cars since many car buyers currently consider the fuel consumption capacity, luxury, and safety of the vehicle before making the purchase decision (Sekhar, 2009, p 381). The international market has experienced rapid advances in vehicle manufacturing technology. Audi has been using quite advanced manufacturing systems in order to maintain the standards of care products and ensure the safety of the cars (Mathur, 2011, p 198).
Audi relies on modern power systems and fuel transmission systems in order to maintain a competitive edge in the luxury car market. In addition, Audi committed a lot of funds in research and development activities that have improved the car manufacturing technology in all the markets of its operation. Audi has complied with the legal environment and safety standards regulations concerning vehicle quality in different jurisdictions (Johnson, Whittington and Scholes, 2011). Audi has ensured that the quality standards in terms of carbon emissions, braking systems, power systems, and engine transmissions meet the local standards of local countries (Aswathappa, 2006, p 56).
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