Latin American Market Vs. U.S Market Essay Example | Topics and Well Written Essays - 500 words

Latin American Market Vs. U.S Market - Essay Example The paper discusses the anticipated market positioning of the company in the U.S.A., Mexico and Latin America. The Volkswagen Group of Latin America is today regarded as the leading automobile company in Latin America (Seume, 2001). This is not the case in the United Sates where there is a lot of competition in the automobile industry. The public has perceived the Volkswagen passenger cars as powerful vehicles in Latin America and in the United States. However, Volkswagen currently does not boast of being a top brand in the U.S. market especially given that its brands have proven to be less reliable compared to those of competitors. The U.S. market largely demands products that are highly reliable with a touch of luxury. The U.S. market also places a lot of emphasis on quality. In consideration of the above, Volkswagen should do its best to assure its customers in the U.S. market of quality, reliability and moderate pricing. In Latin America and Mexico where the income per capita and disposable income of nationals is lower compared to the U.S. statistics (Kotabe & Leal, 2001), the company should position itself as an affordable alternative to beautiful cars. The company should thus price its products relatively lower than competitors taking caution to produce more compact cars in view of production costs. The Volkswagen group in Latin America has set new records as far as sales revenue, vehicle sales and earnings are concerned. The Volkswagen Company has expanded its market share in Latin America as its distribution network has become more robust. In the United States, the company should strive to double its market share; from two percent to four percent by 2014 (Seume, 2001). Volkswagen in the United States should expand its regional offices due to the predicted high sales. In the U.S., the car manufacturer needs to strengthen its relations with