AAM was founded in 1994 when a private investor group, led by Richard E. "Dick" Dauch and James W. McLernon, purchased the Final Drive and Forge Business Unit from GM's Saginaw Division. In 1999, AAM went public, and is traded as "AXL" on the New York Stock Exchange (NYSE). AAM has grown to supply various OEM manufacturers around the globe in the passenger car, light truck, and commercial vehicle segments.
AAM's World Headquarters building, erected in 2004, is located on the Detroit/Hamtramck border.

Q: How do "free" customers like the buyer noted earlier generate value for a firm?

A: A buyer on eBay does not provide direct revenues or profits to the firm but brings in more sellers and increasing numbers of transactions. As more job seekers sign on to Monster.com, more employers are willing to be paying customers for the firm. It is this indirect effect that generates value for a firm.

Q: Does customer value stay the same over time? Does it increase or decrease?

A: Customer value changes over time, and in our data we find that the value is increasing over time. In general, we expect customer value to initially increase as the firm grows and later decline when the firm reaches a critical mass or maturity.

Q: What are the practical applications of your research for companies in networked settings? In particular, what is the role of marketing in an environment with strong network effects?

A: Our research provides guidelines to firms such as eBay or Monster.com on how much they should spend to attract a new buyer or a job seeker. It also shows how a firm may want to allocate its marketing expenditure between buyers and sellers.

Q: Are there some networked environments where this model would work better than others?

A: So far we have focused on two-sided markets where a firm has two sets of customers who interact with each other. There are many other situations (e.g., MySpace) where the nature of customer interaction is much more complex. Our model will not be applicable in those settings.

Q: Was there anything in your findings of the data set you examined that surprised you?

A: We were surprised to find that, at the current time, in our data the value of an additional buyer is almost the same as the value of an additional seller even though the ratio of sellers to buyers is almost four to one.


Entry in the Global Market
Entering a new market is a complex choice which has to be given focus and understanding. With the purpose of establishing a business that would be well-known and sustained by consumers, entrepreneurs are ever more trying to break through the market hastily. (Herrmann and Datta, 2002, 551) Among the factors that egg on businesses to go international is the opportunity set by an investment to support a company which in turn becomes a more a competitive entity among the other players in their respective industries.

If a business entity has decided to break into the international market, there are a lot of options available to them. These options may possibly be composed of the cost, risk and the degree of control that the company will encounter. (Griffith, Russell, Tihanyi, 2005, 270) In having an international business endeavour, it is very important that the management of the company should be competent of selecting a marketing entry system so as to make the business be more competitive (Brouthers and Nakos, 2004, 229). International business scholars make use of the expression “modes of entry” to represent the varied means and methods functional to enter markets and perform trade in other states.

In choosing joint ventures, the company has quite a few advantages to work to their favour. (Choi, and Beamish, 2004, 201) One would be the sharing of information with the associate company. This indicates that the learning curve with reference to the market that the company intends to enter would be rather brief. Likewise, the reputation of the company may similarly develop if a competent associate is selected in the target state. And deciding a competent associate will similarly bring about the prospect of the associate to institute high profit margins. This means that choosing a perfect partner in a joint venture entails the option of establishing obstacles to possible competitors in the same region.

On another hand, companies could break in to a new market through the use of the internet. Leamer and Storper (2001) maintained that the appearance of the internet as a commercial instrument established a “new economy.” (p. 641) Other academics have similarly maintained that the emergence of such technologies online have brought about the “death of distance” and even “end of geography.” (Buckley and Ghauri, 2004, p. 81) Though these assertions may emerge to be rather threatening international businesses have employed these conditions to their advantage. The internet has provided the modern organisation an opportunity to look into new potentials of transmitting correspondence through ICTs. (Leamer and Storper, 2001, p 643) This denotes that a company is capable of operating in opposite sides of the planet devoid of any considerable possibility of loss. Nowadays, manufacturing firms have the propensity to have a head office in a particular location and operational plants in another. (Leamer and Storper, 2001, p 643) This demand even created a new variety of trade. This is seen in Dot.com companies, providers, and developers that present their services to those who have admittance to the internet and those who are determined to employ this medium as their prime channel to success.
 

jamescord

MP Guru
AAM was founded in 1994 when a private investor group, led by Richard E. "Dick" Dauch and James W. McLernon, purchased the Final Drive and Forge Business Unit from GM's Saginaw Division. In 1999, AAM went public, and is traded as "AXL" on the New York Stock Exchange (NYSE). AAM has grown to supply various OEM manufacturers around the globe in the passenger car, light truck, and commercial vehicle segments.
AAM's World Headquarters building, erected in 2004, is located on the Detroit/Hamtramck border.

Q: How do "free" customers like the buyer noted earlier generate value for a firm?

A: A buyer on eBay does not provide direct revenues or profits to the firm but brings in more sellers and increasing numbers of transactions. As more job seekers sign on to Monster.com, more employers are willing to be paying customers for the firm. It is this indirect effect that generates value for a firm.

Q: Does customer value stay the same over time? Does it increase or decrease?

A: Customer value changes over time, and in our data we find that the value is increasing over time. In general, we expect customer value to initially increase as the firm grows and later decline when the firm reaches a critical mass or maturity.

Q: What are the practical applications of your research for companies in networked settings? In particular, what is the role of marketing in an environment with strong network effects?

A: Our research provides guidelines to firms such as eBay or Monster.com on how much they should spend to attract a new buyer or a job seeker. It also shows how a firm may want to allocate its marketing expenditure between buyers and sellers.

Q: Are there some networked environments where this model would work better than others?

A: So far we have focused on two-sided markets where a firm has two sets of customers who interact with each other. There are many other situations (e.g., MySpace) where the nature of customer interaction is much more complex. Our model will not be applicable in those settings.

Q: Was there anything in your findings of the data set you examined that surprised you?

A: We were surprised to find that, at the current time, in our data the value of an additional buyer is almost the same as the value of an additional seller even though the ratio of sellers to buyers is almost four to one.


Entry in the Global Market
Entering a new market is a complex choice which has to be given focus and understanding. With the purpose of establishing a business that would be well-known and sustained by consumers, entrepreneurs are ever more trying to break through the market hastily. (Herrmann and Datta, 2002, 551) Among the factors that egg on businesses to go international is the opportunity set by an investment to support a company which in turn becomes a more a competitive entity among the other players in their respective industries.

If a business entity has decided to break into the international market, there are a lot of options available to them. These options may possibly be composed of the cost, risk and the degree of control that the company will encounter. (Griffith, Russell, Tihanyi, 2005, 270) In having an international business endeavour, it is very important that the management of the company should be competent of selecting a marketing entry system so as to make the business be more competitive (Brouthers and Nakos, 2004, 229). International business scholars make use of the expression “modes of entry” to represent the varied means and methods functional to enter markets and perform trade in other states.

In choosing joint ventures, the company has quite a few advantages to work to their favour. (Choi, and Beamish, 2004, 201) One would be the sharing of information with the associate company. This indicates that the learning curve with reference to the market that the company intends to enter would be rather brief. Likewise, the reputation of the company may similarly develop if a competent associate is selected in the target state. And deciding a competent associate will similarly bring about the prospect of the associate to institute high profit margins. This means that choosing a perfect partner in a joint venture entails the option of establishing obstacles to possible competitors in the same region.

On another hand, companies could break in to a new market through the use of the internet. Leamer and Storper (2001) maintained that the appearance of the internet as a commercial instrument established a “new economy.” (p. 641) Other academics have similarly maintained that the emergence of such technologies online have brought about the “death of distance” and even “end of geography.” (Buckley and Ghauri, 2004, p. 81) Though these assertions may emerge to be rather threatening international businesses have employed these conditions to their advantage. The internet has provided the modern organisation an opportunity to look into new potentials of transmitting correspondence through ICTs. (Leamer and Storper, 2001, p 643) This denotes that a company is capable of operating in opposite sides of the planet devoid of any considerable possibility of loss. Nowadays, manufacturing firms have the propensity to have a head office in a particular location and operational plants in another. (Leamer and Storper, 2001, p 643) This demand even created a new variety of trade. This is seen in Dot.com companies, providers, and developers that present their services to those who have admittance to the internet and those who are determined to employ this medium as their prime channel to success.

hello netra,

here i am sharing Global Strength of AAM, so please download and check it.
 

Attachments

  • Global Strength of AAM.pdf
    6.4 MB · Views: 0
Top