SWOT analysis Volkswagen Company
Strengths of Volkswagen Auto Company
The main factor that gives Volkswagen Company an advantage over its competitors is its strong global presence. According to Rohm et al (2012), Volkswagen is one of the automobile companies that have been able to penetrate and take strong base in many countries such China and India. The auto Company operates in over 153 countries across the world and it is the third largest auto manufacturers and among the top companies in the global presence. Volkswagen has established firms in various regions including North and South America, Africa and China.
Unlike other auto manufacturers, Volkswagen owns different strong brands in the market, giving a strong competitive advantage. Among its 13 brands in the market include Volkswagen, Audi, Porsche, Bugatting and Lamorghini. Volkswagen has been able to reach a wide client base because its brands are satisfies the needs of different clients (Rohm et al 2012).
Volkswagen has been able to favorably compete with its rival by taking a strong base in China. Because of the high population and the first growing middle class, China has been the target market of many auto manufacturers. The strong base in China, has enable Volkswagen to increase is sales especially from its Audi and Volkswagen brands.
Apart from having well performing brands, Volkswagen also benefits from the synergy that is achieved through the 13 brands in the market. The benefits come in the sense that the Volkswagen benefits from the shared cost of Research and Development and servicing cost. Sharing the cost of various operations of Volkswagen by the 13 separate companies has helped the organization to benefit from reduced cost of production which translates to increase in return to investment (Jahn & Kunz 2012).
SWOT Analysis Chart for Volkswagen Auto Manufacture
· Strong global presence
· Strong brands
· Strong presence in China and well performing brands
· Changing Customer needs
· Manufacture of ‘green’ vehicles
· Meeting emission standards
· Fluctuating exchange rates
· Fluctuating fuel prices
· Weak market presence in U.S
· Manufacture of cars that are not environmentally friendly
Jahn, B., & Kunz, W. (2012). How to transform consumers into fans of your brand. Journal of Service Management, 23(3), 344-361.
Rohm, A. J., Gao, T. T., Sultan, F., & Pagani, M. (2012). Brand in the hand: A cross-market investigation of consumer acceptance of mobile marketing. Business Horizons, 55(5), 485-493.
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