The VW Resende Modular Consortium Essay Example | Topics and Well Written Essays - 3000 words

The VW Resende Modular Consortium - Essay ExampleThe idea of a modular consortium consists of separating the product into sub-assemblies (modules) which are delegated to and tout ensemble provided by a specific module supplier. Therefore, the module supplier is responsible for assembling its module directly on the automakers assembly birth (Pires 1998, 225). By establishing watertight partnership with 7 key suppliers and outsourcing 100% of its manufacturing, VW was striving to optimize the operating costs, minimize the coordination costs, to improve cooperation between the partners (suppliers), to improve quality and productivity, to annex the market share, and to utilize situation to a greater extent efficiently.Referring to the porters beers strategic framework, VWs strategy of manufacturing trucks in Brazil could be defined as a Focus Strategy. Under a focus strategy the firm concentrates on one or a limited range of segment of the market (Thompson and Martin 2005, p.287). thus did VW, by focusing its manufacturing cognitive operation on trucks. Working in the automotive industry throughout the world, VW has made a decision to focus mainly on one segment of the car industry in Brazil. It was a truck mathematical product sector. While this strategy was different from the overall company strategy, VW had to act in a way that trump out fitted the organizations competitive environment in Brazil. The company benefited from its specialization on truck segment by gaining strong competency in the production of trucks and some of their modules. According to the information.... g costs, minimize the coordination costs, to improve cooperation between the partners (suppliers), to improve quality and productivity, to increase the market share, and to utilize space more efficiently. Referring to the Porters strategic framework, VWs strategy of manufacturing trucks in Brazil could be defined as a Focus Strategy. Under a focus strategy the firm concentrates on o ne or a limited range of segment of the market (Thompson and Martin 2005, p.287). Thus did VW, by focusing its manufacturing process on trucks. Working in the automotive industry throughout the world, VW has made a decision to focus mainly on one segment of the automobile industry in Brazil. It was a truck production sector. While this strategy was different from the overall company strategy, VW had to act in a way that best fitted the organizations competitive environment in Brazil. The company benefited from its specialization on truck segment by gaining strong competency in the production of trucks and some of their modules. According to the information, received from the interview with Jose Ignacio Lopez, the VW Resende Modular Consortium could enable the company to gain significant competitive advantage among the rivals. These included modern and creative manufacturing process, relatively low cost, quality of the trucks, simultaneous engineering process with the suppliers, spe ed in the development and launching of new products, common corporate goals and objectives (trend to work more toward mutual success) (Correa and Park, n.d., pp.1, 7, 10). With Focus strategy approach the company can seek either lower costs or differentiation (Thompson and Martin 2005, p.287). Therefore, by going deeper to the Porters focus strategy, it is possible to assume that the VWs Resende