UNIVERSITY OF TECHNOLOGY, SYDNEY
FACULTY OF BUSINESS
GRADUATE SCHOOL OF BUSINESS
SCHOOL OF MANAGEMENT

Written Case Analysis
Case 8 Netflix versus Blockbuster versus Video-on-Demand

Report to:
Martin

Completed as part of the requirements for Strategic Management (21715)
Contents

Executive Summary p. 3

Introduction p. 4

Volkswagen AG Pre-1993 p. 4

Issues facing the auto industry and Volkswagen AG in the 1990’s p. 5

Financial performance between 1993 and 2001 p. 6

Labour policies p. 7

Leadership p. 8

Recommendations p. 9

Conclusion p. 9

References p. 10

Appendices

Executive Summary
With the autocratic management style of Ferdinand Piëch, VW was able to expand and grow during a time when there were increasing cost pressures on automakers world wide. Innovations in the manufacturing process through integration and redesign of the value chain helped VW group reduce set up costs, manufacturing costs and labour costs while significantly reducing development times and costs of new models.
Although Piëch was basically a one man band having control of the R & D, Quality, Production and Purchasing departments, his direction has left the incoming CEO with a solid base to further develop and grow the VW group. His vision and drive have placed VW in the position of number one automaker in Europe with market share well ahead of the nearest competitor. He has also globalised the brand with construction of plants in Asia, South America and Eastern Europe. These strategies have helped reduce labour costs at home and develop a more flexible work force.
In purchasing high profile, luxury brand car makers in Lamborghini, Bugatti and Bentley and turning around the fortunes of the lower end models in the group, Piëch has created a brand that is able to position