...Volkswagen Group Business Strategy & International Management Content 1 2 Introduction Volkswagen Group 2.1 2.2 Figures, Data, Facts History 2 2 2 4 5 5 6 8 8 10 12 12 15 16 17 18 3 Strategy Planning 3.1 3.2 Overall Strategy Strategy 2018 4 Business Risk Analysis 4.1 4.2 Porter’s Five Forces Resources and Capabilities 5 Financial Risk Analysis 5.1 5.2 Key Financial Figures Risks 6 7 8 SWOT-Analysis Conclusion References 1 Business Strategy & International Management 1. Introduction Whenever you visit another country and you say that you come from Germany on of the first things you ever hear is “Germany, oh I like German cars” and then they say e.g. BMW, Mercedes or Audi. That shows that German cars are not really German cars, instead they are world cars, produced and sold in countries all over the world. In my case I choose the Volkswagen Group because it is the biggest German car manufacturer and the second largest in the world. Moreover the strategy of Volkswagen is to be the largest car manufacturer until 2018. To reach this goal it is very important to understand the globalized world to compete with their competitors in a more and more competitive environment. Furthermore it is very important to show attention to emerging markets to increase the company’s sales especially when some markets like America and Europe are satisfied. In this report I want to analyze the Volkswagen...
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...(1)INTRODUCTION When doing business in an international scale, it is important to understand what international business really means. Therefore according to Rugman & Collinson (2012) international business can be defined as “The study of transactions taking place across national borders for the purpose of satisfying the needs of individuals and organizations. Some of the well known International businesses (MNE’s) are Wal-Mart, Toyota Motors, General Motors and Volkswagen for their performance, moreover annual revenue. Decisions with regard to movement in to global arena should be taken with care as there is certain degree of risk involved. There should be value in moving to different markets (eg- An organization may lack the skills needed to make use of the potential-Integrate R&D activities or incompatible cultures The cost of managing complex infrastructure should not –outweigh the benefits of increased scale Some industries posses’ particular globalization challenges for example companies operating in the manufacturing sector (automobile makers) often faces complexities in integration and particularly vulnerable to economic slowdowns which reduces their ability to expand. (Alexander & Korine, 2008) According to Wall & Rees (2004) the factors to be considered when investing abroad can be classified in to four areas-Supply factors, demand factors, Political factors and others. Under supply factors, production costs, Distribution costs and access to key technologies...
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...Introduction: In 1937, the Volkswagen was born in German it is an automobile company, through the 70 years of development it get the public favorite cars of all over the world. The company of Volkswagen means mass consumers can use and buy it; it has ten brands with them own enterprise. Such as Audi Porsche Skoda Bentley Lamborghini Bugatti Volkswagen Skoda Seat, the Volkswagen group’s portfolio is made up with nine successful brands that excite one billion of customers around the globe. In 2010 that groups further sharpened the individual, distinctive image of each individual brand. Focus on American and china most of customers are usually like to buy the car of Volkswagen. In china the company publicity their own culture and across the advertisement to tell the public it is contains one hundred years of brand. And the products high-end brand image at present was most consumers are recognized. Because official business is widely used the car of audi also gives the Volkswagen to promotion their brand in public mind. Analyze: Marketing mix of the Volkswagen in the international The brand of the Volkswagen is the successful marketing in the world. It used the 4ps in the different countries. Covering the international market, subsequent the most important concerns the implementation by touching the 4ps: product price place promotion. It changes the standardization and adaptation in the marketing Product: The Company concerns about the development and renew the product, cause...
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...13 Bargaining power of Buyers (High) 14 Threat of Substitutes (high) 15 Industry rivalry (Medium – High) 15 3.0 Company Overview 17 3.1 Company Overview 17 3.2 Operational Model 17 3.3 Company Evolution 18 3.4 Life Cycle 18 3.5 Growth Strategy 19 3.6 Financial Ratio Analysis 20 4.0 Customer Profile 21 4.1 Target Market 21 4.2 Product Usage 21 4.3 Purchase Motivation 21 5.0 Company Strategy 22 5.1 Resources 22 5.2 Value Drivers 22 5.3 Cost Drivers 23 5.4 Corporate Strategy 23 5.5 Business Level Strategy 23 5.6 Functional Level Strategy 24 5.7 International Strategy 24 5.8 Value Chain Analysis 24 6.1 Competitive Analysis 25 6.3 Effectiveness of Strategy 26 Volkswagen Group 27 3.0 Company Overview 28 3.1 Company Overview 28 3.2 Operational Model 28 3.3 Company Evolution 29 3.4 Life Cycle 29 3.5 Growth Strategies 30 3.6 Financial Ratio Analysis 30 4.0 Customer Profile 31 4.1 Target Market 32 4.2 Product usage 32 4.3 Purchasing Motivation 34 5.0 Company Strategy 34 5.1 Resources 34 5.2 Value Drivers 35 5.3 Cost Drivers 37 5.4 Corporate-level Strategies 37 5.5 Business-level Strategies 38 5.6 Functional-level Strategy 38 5.7 International Strategy 39 5.8 Value Chain Analysis 40 6.0 Observation and Conclusions 40 6.1 Competitive Analysis 40 3.0 Company Overview (per 44 Customer Profile 51 Target Market 51 Product Usage 52 5.0 Conclusion 56 Executive Summary...
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...Aligning Strategy and Structure Dr. Sunny Onyiri BA 610 Managing Global Companies Zhishuo Zhou 4/15/2015 Volkswagen (VW Volkswagen), March 28, 1937, Ferdinand Porsche, with the support of Mercedes-Benzes created public development company, the same year in September to VW co., LTD. Volkswagen is Germany's biggest and most young car company, is an international group co., LTD., based in Wolfsburg, Germany Volkswagen group, is one of the world's leading automobile manufacturers, is also the largest car manufacturer in Europe. In the world's largest car market Western Europe, about one in every five new car from the Volkswagen group. The development of the nationalization and internationalization is a striking feature in the development of Volkswagen Ag. Volkswagen is because history has uniqueness, always shoulder the responsibility, state and society and the nationality of the background, and makes the public company obtained the support in the start-up and growth stage. Due to the implementation of enterprise internationalization strategy, the public company eventually grow into a multinational company, the product production on four continents, and implement a global sales and service. Public company was founded in the 1930 s. After the German Nazi party to power, the so-called "national socialism" in 1933, the Nazis set up "the German Labor front (DAF, Deutschen Arbeitsfront)" group, the group is forced to take over the assets of the former "German business alliance"...
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...Foreign Direct Investments: Volkswagen’s Entry Strategy in China’s Car Market 21/1/2013 Content Page Table of Contents Abstract 1 Introduction 1 Literature review 2 Volkswagen rational for China – Dunning’s Eclectic Paradigm. 4 Conclusion 6 References 7 Abstract China is one of the most attractive destinations for Foreign Direct Investments in the world. It is first destination for Inward FDI among developing countries (WTO, 2012). China has developed second world’s largest car market after U.S.A. and has been the largest car producer in the world since 2008. German company Volkswagen (hereafter VW) is the world’s second largest motor vehicle manufacturer after Toyota Motor (CNN, 2012) and the biggest manufacturer in Europe. VW is one of the earliest investors and the biggest foreign car maker in China with 15% of market shares. This report, by applying relevant theories, such as Dunning’s eclectic paradigm or Hymer’s internationalization theory, will explain why VW Company decided to invest in China through joint venture rather than acquisition or Greenfield investment. Introduction Chinese car industry, as well as many other branches, is very young, although dynamic and fast growing. In 1978 Chinese government introduced policy of open doors which allowed foreign companies to invest and operate in China. Since then car sector has developed rapidly from an infant to a mature industry. Moreover, Chinese government provides various...
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...School of ManagementAssignment Cover Sheetfor submission of individual and group work | Course / Unit Code | Assignment Number | Assignment due date | Group / Session name (if applicable) | BUSM1227 | 1 | 27/02/2012 | Class B | Course / Unit Name | Program Title | International Business | Bachelor of Business (Management) – Full Time | Lecturer / Teacher’s Name | Tutor / Marker’s Name (if applicable) | Wenda Leong | | This statement should be completed and signed by the student(s) participating in preparation of the assignment. Declaration and statement of authorship: 1. I / we hold a copy of this assignment, which can be produced if the original is lost / damaged. 2. This assignment is my / our original work and no part of it has been copied from any other student’s work or from any other source except where due acknowledgment is made. 3. No part of this assignment has been written for me / us by any other person except where such collaboration has been authorised by the lecturer / teacher concerned and is clearly acknowledged in the assignment. 4. I / we have not previously submitted or currently submitting this work for any other course / unit. 5. This work may be reproduced and / or communicated for the purpose of detecting plagiarism. 6. I/we give permission for a copy of my / our marked work to be retained by the School for review by external examiners. 7. I / we understand that plagiarism is the presentation of the work...
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...Vol. 1, No. 2 International Journal of Economics and Finance How to be Competitive in Chinese Automobile Industry Jianhan Zhao Shanghai University of Finance&Economics, Finance Engineering Shanghai, 200433, China E-mail: dorazhaojh@hotmail.com Lei Gao Liaoning Shihua University, School of Mechanical Engineering Abstract Chinese market has a great demand for foreign cars, and a great many foreign automobile companies are competing for their market shares here. The most representative ones are Volkswagen and Honda, they adoped different market strategies and they both suffered some success and failures With so many competitions, the future of Chinese automobile industry is hard to predict. Keywords: Market structure, Industry structure, External challenges, Three joys, Source and supply chain 1. History background After the reform and open policy, China’s economy has been increased rapidly, and there was a great demand for cars. But the domestic automobile industry was not that developed at that time and could not meet with such a great demand. So in the 1980s, Chinese automobile industry started to join hands with the foreign companies and improve the technology. Among all the foreign companies, the most typical and successful ones are Volkswagen and Honda. The Volkswagen Company started to enter the Chinese market in 1984 with production base in Shanghai. It is one of the earliest manufactures set up business in China. And it set up another joint...
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...3 3.2 International Product Life-Cycle Theory P. 3 3.3 Internationalization Theory P. 4 3.4 The Eclectic Paradigm Theory P. 4 3.5 Further Theories P. 4 4.0 Case Study: Volkswagen in China P. 5 4.1 Brief History of Volkswagen P. 5 4.2 Entry into China P. 5 4.3 The Eclectic Paradigm and Volkswagen P. 5 4.3.1. Ownership Advantages and P. 5 Internationalization Advantages 4.3.2. Location Advantage P.5 4.4 The Oligopolistic Reaction Theory P. 6 5.0 Conclusion P. 6 6.0 Bibliography P. 7-8 7.0 Appendices P. 9-11 1.0 Abstract Foreign Direct Investment has seen extensive growth globally in the past quarter century and numerous studies have attempted to address the question of why firms choose to enter foreign markets via this method. FDI is an important aspect of developing economies with China seeing some of the highest investment rates. The report takes the example of Volkswagen who were the first automobile company to engage in FDI in China and have seen excellent growth there over the years. It has found no one theory can be applied and many elements must be considered when looking at why an individual firm chooses to internationalize through FDI. 2.0 Introduction Foreign Direct Investment (FDI) has become an increasingly important area of study within International Business as rates of...
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...Case study: Volkswagen Alignment of IT strategy with the organization's business strategy is a fundamental principle advocated for over a decade (Luftman 2000). From 1930s the first Volkswagen automobiles was designed to 2008, Volkswagen had become one of the biggest vehicle industries in the world and experienced both the sales peak and “Valley of Despair”. It has developed its pattern to face the upcoming difficulties. But according to the article, there were still some issues need to be resolved or improved such as the unsatisfied IT-‐business alignment maturity. And this case study would focus on what kind of roles IS should play and how to achieve IT-‐business alignment at Volkswagen. From this article we can see, Volkswagen had developed several strengths like brand grouping, Next Round Growth initiatives, pursued ecommerce, etc. After ...
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...Executive summary Volkswagen is one of the biggest German automobiles manufacturing company, which operate all over the world. The main aim of the company is to become the first automobile manufacturer by 2018 and India became one of the key “element” in this strategy, since India the second fastest growing automobile market. Volkswagen India operates since 2001 when they presented Skoda brand to the Indian car market. Methodology For the following research was implemented realism philosophy, which means that both positivism and interpretivism approaches were used. The main tool, which was used in this particular research, was secondary data, as India country was chosen as a research area, so collecting primary data was impossible. Mainly the annual reports, journal articles and in some cases books were used. As India was chosen for the research, there was no ability to conduct the survey and use primary data. Situation analysis A. The internal environment Review of marketing goals and objectives * 15% annual growth rate for the next five years * To bring new technologies in car market of India * To increase market share twice, to 7% by 2018 * To explore India car market with new dealerships * Raise brand awareness of the company in India It should be mentioned that in order to increase quantity of customers and prove that Volkswagen is company Indian people could trust, Volkswagen introduces Polo GT TDI in 13 September 2013 with remark “German...
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...Promotional and Advertising Strategies Author’s name Institution’s name Promotional and Advertising Strategies Abstract The automotive industry is a multi-billion industry. The dawn of the twentieth century witnessed the beginning of the automobile industry.entrpernuers in the United States and Europe made the first prototypes of vehicles by the end of the nineteenth century. Since then entrepreneurial activities has been booming in the industry that has been motivated by competition among car manufacturers. Competition in the automotive industry inspired the introduction of innovative promotional strategies, marketing strategies, pricing and consumer-oriented promotional strategies. This paper researches on the automotive industry, taking note of leading companies in their respective product category, their marketing strategy, consumer-oriented promotional strategies, their pricing and the leading companies within the product group. This paper also recommends ways in which companies I the automotive industry could use marketing information to gain competitive advantage and to differentiate itself in the marketplace. Effective advertising strategies for automotive companies will also be mentioned. Introduction Automotive industry started in the 1890’s as a result of the domestic market and the introduction of mass production in the automotive industry that rapidly revolutionized the industry into the largest in the world (McAlinden, Sean & Bernard 2005). The industry...
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...International Business Mechanisms that regulate international trade Free trade-Free trade is a policy which a government does not discriminate imports or exports of certain products between countries. According to the law free trade enables countries to trade freely between them of goods and services. The concept of free trade is a factor to the aspect of globalization. Barriers to trade Trade barriers- Trade barriers are imposed government restrictions on international trade. These barriers can be seen in forms of: -Tariffs -Import/Export licenses -Subsidies -Embargoes Economic alliances such as the EU are crucial to building a strong force of economic financial statuses for both people and countries. For example: Because the UK are importing chocolate from Belgium it means that people are more willing to spend money on chocolates as there are more types of chocolates available to them. As well as making customers potentially spend more money on products from different countries, companies who import these products have to pay a certain amount of tax to the government for its trading activities, and as a result that’s the reason why for example: American sweets are more expensive. Companies raise the price of their products in order to cover up for the transportation of the product and the taxes imposed by the government on the product. For Volkswagen because they operate in multiple countries it means that they are able...
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...PROJECT CASE STUDY OF THE VOLKSWAGEN NEW BEETLE [pic] MKTG Principles of Marketing TABLE OF CONTENTS Abstract Introduction Product concept Development of the Volkswagen New Beetle New Beetle adoption Marketing throughout the product life cycle Beetle brand Findings Conclusions Reference list Abstract *** “The Beetle is different, it makes you feel different. It is like a magnet”, - Volkswagen Chairman, Ferdinand Piech (Keith Naughton and Bill Vlasic, 1998) *** The present paper is the case study of the Volkswagen New Beetle from the marketing perspective. The thesis will analyze the product concept, and examine the New Beetle in terms of the concept in question. The purpose of the paper is to identify the issues in the application of theory with regard to the New Beetle as a product, describe the function and operation of this element of the marketing mix in Volkswagen, as well as to review the status of the identified issues in the reviewed company. The paper will consider the introduction of the New Beetle to the market and examine the respective phases of the product development. The thesis will also examine the adoption of the New Beetle as a product, overview the product lifecycle and the issues with regard to the Beetle brand. Overall, New Beetle is unique from other cars and can be the good example of the successful product development and adoption. The Beetle Brand...
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...studied and worked on problems associated with automobile manufacturing and we are all mechanical engineering graduate students. Analysis Methodology: The report begins with a historical overview of the automotive industry. This is followed by an analysis of the industry’s structural characteristics using Porter’s 5 Forces Model as a framework, which provides an understanding of the automotive industry as a whole in its current state. Next, ten representative companies of varying sizes are analyzed and compared; the chosen companies and selection criteria follow. General Motors, Ford, and Toyota were chosen because they are the current market leaders. DaimlerChrysler, Nissan, Volkswagen, and Honda were chosen because of their status as stable international companies who have been in the automobile business for many years. Hyundai, Maruti Udyog, and Shanghai Automotive Industry Corp., based in Korea, India, and China, respectively, were chosen based on their growth potential and their status as relatively new to the industry. These ten companies are analyzed in terms of their market position, their financial situation, and their management...
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