Use the attached image to answer the following question.  Audi relies heavily on, ‘Home Country as Largest Production Country’. Discuss the benefits and risks associated with this strategic choice. Based on the information provided in the case, analyse four (4) criteria Audi would have considered when making this choice.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
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Use the attached image to answer the following question. 

Audi relies heavily on, ‘Home Country as Largest Production Country’. Discuss the benefits and risks associated with this strategic choice. Based on the information provided in the case, analyse four (4) criteria Audi would have considered when making this choice. 

Home Country as Largest Production Country
Ingolstadt is Audi's most important location. It is where the company was founded in 1949, it is the location of the
headquarters and it is also Audi's biggest manufacturing site. More than one third of all Audi cars are produced in
Ingolstadt (577,000 cars in 2013). It has all the major parts of the car manufacturing production process: a body shop, a
paint shop, an assembly line and even a press shop.
The factory builds some of the company's most important car models (A3, A4, A5 and Q5). For many of the models,
Ingolstadt serves almost as a world market factory, supplying most countries with their respective models, and having
a high level of value added for these models.
The Ingolstadt factory even has an in-house tool making department which develops and builds meta-forming tools
and assembly-line systems for the factory but also for other factories in the Audi and the Volkswagen Group.
Audi's second German location is in Neckarsulm, about 250 km away from Ingolstadt. It is another major production
site with a production of about 275,000 cars. It is characterised by a broad product diversity, building the Audi A4
sedan, Audi A5/S5 cabriolet, Audi A6 (sedan, Avant, S6, allroad Quattro, hybrid), Audi A7/S7, Audi A8 and Audi A8,
and Audi R8 models (in its different versions) as well as the high end models for different Audi ranges (RS).
Transcribed Image Text:Home Country as Largest Production Country Ingolstadt is Audi's most important location. It is where the company was founded in 1949, it is the location of the headquarters and it is also Audi's biggest manufacturing site. More than one third of all Audi cars are produced in Ingolstadt (577,000 cars in 2013). It has all the major parts of the car manufacturing production process: a body shop, a paint shop, an assembly line and even a press shop. The factory builds some of the company's most important car models (A3, A4, A5 and Q5). For many of the models, Ingolstadt serves almost as a world market factory, supplying most countries with their respective models, and having a high level of value added for these models. The Ingolstadt factory even has an in-house tool making department which develops and builds meta-forming tools and assembly-line systems for the factory but also for other factories in the Audi and the Volkswagen Group. Audi's second German location is in Neckarsulm, about 250 km away from Ingolstadt. It is another major production site with a production of about 275,000 cars. It is characterised by a broad product diversity, building the Audi A4 sedan, Audi A5/S5 cabriolet, Audi A6 (sedan, Avant, S6, allroad Quattro, hybrid), Audi A7/S7, Audi A8 and Audi A8, and Audi R8 models (in its different versions) as well as the high end models for different Audi ranges (RS).
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