Chapter 2: Strategic Planning for Competitive Advantage

Volkswagen is one of the most successful and biggest manufacture companies in the world. it has been clear dominant in many perspectives in the automobile market sector. But many people may ask how they accomplish all those standards? well a lot of different but fundamental movements to surpass and outshine the market competition. And one of the most essential components is the  successful strategic planning in the market to surpass the competition. Currently one of the biggest competition of Volkswagen is Toyota they obtain the 1st place as the world's largest automaker. but Volkswagen became 2nd and currently in the process to surpass them. Volkswagen has been an outstanding automaker its currently under process of keep progressing in the automobile market sector. For many years Volkswagen mission is "to elaborate long term strategic partnerships with their customers. To offer attractive, safe and environmentally sound vehicles which can compete in an increasingly tough market and set world standards in their respective class." Volkswagen is elaborating a strategic plan to become the global economic and environmental leader among automobile manufacturers by 2018.

presenting SWOT inspection provide corporations to distinguished their competitive benefit.

Strengths (Internal Strategic Analysis):

 Strong Brand Image: it owns 13 brands including famous brands Bugatti, Audi, Lamborghini, Porsche, and Volkswagen. Other brands are Bentley, SEAT, Škoda, MAN, Scania and commercial vehicles. With such variety of vehicles it builds a strong brand.

Presence all over the world: it operates its operation in more than 153 countries. It has 100 car manufacturing plants in North and South America, Europe, Africa, Asia, and Oceania.

Awesome performing Brands: Volkswagen has been thoroughly developing well-performed cars among all other brands.

Presence in the largest market in China: China is an emerging economy and the largest car market in the world. It grabbed more than 20% of the china market with Volkswagen and Audi. It possesses the strongest market share in China.



Weakness (Internal Strategic Analysis):

Weak position in the United States: it has only 4.8% market share in the United States. (2014)

Weak position in Indian Market: it possesses only 3% market share in a big country like India.

Most of their cars are not environment-friendly: we know that carbon-di-oxide harms the ecosystem. Three of their most active brands named Porsche, Lamborghini, and Bugatti emits excessive carbon-dioxide. And if any government takes any action against it, it may harm the company drastically.

Not a strong brand like Toyota: it could not build the presence like other known brands, for example Toyota.

Opportunities (External Strategic Analysis):

Technology Modification: it can change its technology to more environment-friendly cars which give them opportunities to avoid uncertainty.

Originate Indian Market: it can grow in the emerging market like India.

Market United States: Still there are rooms for increasing market shares in the United States.

Rooms for Social Responsibility: as they manufacture cars which produce more carbon dioxide, they can change their technology for the betterment of the environment and fulfill social responsibility.

Getting stronger through acquisition: it has successfully been acquiring other companies and getting larger.

Decreasing Fuel Price: cars which are more fuel dependent, and will be grabbing more market shares.


Threats (External Strategic Analysis):

Carbon Dioxide emission standards: if any government put any restriction on emitting carbon-di-oxide, it will harm the company.

Decreasing Fuel Price: with the decreasing fuel price, the demand of hybrid cars will be going down.

Raw material price in the increasing: the increasing price of raw materials will be hampering the economies of scale of the company, and therefore offering a high price.


Other Stronger Brands: Brands like Toyota, Fords are taking developing countries like Bangladesh, India where Volkswagen holds a low portion of market share.

Sources:

• http://www.history.com/this-day-in-history/volkswagen-is-founded

•  http://www.forbes.com/sites/andreamurphy/2015/05/06/2015-global-2000-the-worlds-biggest-auto-companies/#7bbc63b06e48 

•  http://www.marketwatch.com/story/volkswagen-back-in-profit-after-huge-2015-loss-2016-05-31  

•  http://www.volkswagenag.com/content/vwcorp/content/en/brands_and_products.html