The European Market
Autor: bobbysixkillers • May 4, 2015 • Article Review • 1,296 Words (6 Pages) • 756 Views
The European market has a certain number of features that give to AD good chances to achieve its pan-european expansion.
External factors Context
The European market is highly fragmented. No company holds a significant share;
AD is #1 in Europe even if it is no present outside its home market;
Main four European markets are quite similar (Germany, Italy, UK, France):
expected growth should last during last nine years at a rate between 2 and 3%,
technical complexity of car parts is continuously increasing,
a new legislation has increased in the number of compulsory vehicle inspections,
deregulation has been introduced to meet European Standards which breaks the French legislation which was very restrictive regarding independent wholesalers.
Internal factors
AD has a strategy for a powerful presence European markets:
Focus on opportunities within France (acquire around $167 million of turnover each year),
Increase efficiency within the organization’s existing subsidiaries,
Improve central organization,
Increase the purchasing power of the central buying unit (CBU) through increasing suppliers base.
AD has prospective targets, that is the European wholesalers affiliated with the ADI network;
Creation of an international subsidiary, ADI in 7 country which increases purchasing volume and obtains additional 2-3% discount off the prices negotiated locally;
AD is the largest wholesaler in Europe ($1.2 billion in combined revenues),
International network around the AD concept, AD brand, AD process / 3 business functions: CBU, company-owned wholesalers, auto centers. The European market has a certain number of features that give to AD good chances to achieve its pan-european expansion.
External factors Context
The European market is highly fragmented. No company holds a significant share;
AD is #1 in Europe even if it is no present outside its home market;
Main four European markets are quite similar (Germany, Italy, UK, France):
expected growth should last during last nine years at a rate between 2 and 3%,
technical complexity of car parts is continuously increasing,
a new legislation has increased
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