Volkswagen Strategic Shift Analysis: Mini-Case Study

Arnold Communications undertook extensive market research in order to understand the modern VW buyer and their position in the industry. They set about collecting primary data through extensive interviews, visiting 95 of the top VW dealers and drving VX over 50,000 miles

The Volkswagen Group follows a cost leadership and differentiation strategy. The Volkswagen Group achieves low cost leadership by sharing automotive parts amongst its products and as well as sharing vehicle platforms amongst the other 12 brands under the Volkswagen Group, such as Audi, Bentley, Porsche and Volkswagen Passenger Cars. The Group improves product differentiation by focusing on the product quality improvement, innovation and sustainability. This differentiation strategy helps ensure that the customers are satisfied with the products, and that the customers will be willing to pay a premium for the product.

The mission at Chrysler is to reduce the environmental footprint, focus on safety and the efficiency of the vehicle, and remain competitive in the industry (Mission, 2014). By utilizing the adhocracy framework, Chrysler is focused on the creation of vehicles that are good for the environment. Chrysler also relies on innovation to keep up with the changing safety regulations as well as making new smaller vehicles to meet consumer demands. In order for Mr. Marchionne to have a sustaining competitive edge he also has to look at the market framework to gauge the demands of their customers (Kreitner & Kinicki, 2013). With gas prices on the rise, Mr. Marchionne has to remain competitive by building smaller fuel efficient vehicle (Muller,

During the post World War II years, the Volkswagen beetle fulfilled the niche market of being small and affordable (Vanden Bergh, 1992). Some would say exploiting the Beetle as a marketing icon has catapulted the entire fleet of Volkswagens into popularity after a slump in sales during the 1980’s and early 1990’s (Kiley, 2002). Playing on American’s love affair with the retro-culture, the new beetle’s popularity has soared.

Volkswagen’s dishonesty has been detrimental to the company’s reputation. Had Volkswagen been truthful in its response to the issue, the damages might not have been as bad. If the company had exercised care, justice, and respect for people’s rights, consumers might even mitigate their negative perception of the company when purchasing a new car. Only time will tell whether Volkswagen will ever reclaim its

The auto industry and area of commerce in which automobile models are planned, designed, manufactured, and marketed. The automobile industry is concerned with profits and competition. And depending on the country consumer demands for styling, safety, and efficiency differ and with labor relations and manufacturing efficiency too.

Almost always, when a new product is released, some sort of problems will occur. In 2013, Volkswagen was ranked first in its section on the Dow Jones Sustainability Index. During that year, Volkswagen scored an 89 out of 100. VW became one of the top competitors of sustainability within the automotive industry. However, in the early 2000’s, diesel engine manufactures such as VW had been submitting questionable data. Many of the VW vehicles had been violating the Clean Air Act. In order to understand the case, it is important to analyze how Volkswagen is guilty of greenwashing, how the company and situation relates to the 3 levels of Social Responsibility, as well as discussing whether Volkswagen will be able to

Volkswagen One of the largest automobile company in the world. Volkswagen is a company from Germany that deals with automobile manufacturing. In the list of top ten best selling cars Volkswagen’s has three cars, those us Volkswagen Golf, Volkswagen Passat and Volkswagen Beetle. The meaning of Volkswagen is ‘People’s car’, which is a German word. Slogan of Volkswagen is “Das Auto”. Ferdinand was funded Volkswagen was founded in 1937 its Headquarter is in Wolfsburg, in country Germany. Martin Winterkorn is the Current chairman of the company. Volkswagen’s revenue 94.7 billion euro in 2011 and also has more than 3658500 employees. Volkswagen is among world’s largest car manufacturer. Others are Toyota, General Motors,

The Brand VW has always conveyed the message as an affordable car. The companies product have been looked upon as one which offered the benefits of German engineering affordably, emotionally. The cars represented completely different driving experience – more connected to the road – different way of driving – more connected to the world. Heritage of German engineering and the car's more fun, pleasurable driving experience were the powerful strengths. Affordability was one of the key factors as against most of the other German cars makers who represented only the high end of the Segment. It also focused on Drivability – Unique driving experience not just on the car's ability to get people from one point to other,

It was always Volkswagen ambition to conquer US car market. One of the difficulties they faced was common in USA loyalty to domestic car vendors. Another problem is different market structure. Diesel cars share much less part of the market than it is in Europe. And much more restrictive emission limits required by the USA law

The American Auto Industry has flourished since the early 1900s; it is one of the industries that represents one of the largest segments within the U.S economy and forms the core of the nation’s industrial strength. Americans dominated the industry in the first half of the century. By the 1960s the car market was flooded by the big three (Chrysler, Ford and General Motors) whose manufacturing relied heavily on promotions and model changes to boost their sales (Foner & Gratty, 1991) However the blue print for the modern automobile was perfected by Germany and France in the 1800s.

Volkswagen is known as people 's car. Financial aspects and fuel amounts were kept in mind to transport a family of five. Volkswagen still remains the best seller due to its air cooled engine and rounded performance. The core competency was exhibited through these features. It organised itself around its core processes where brand repositioning was a good step.

The automotive industry is a challenging field that has the potential for strong growth and profitability. It is also a fast-pace and demanding environment that Volkswagen’s company has been able to navigate for 78 years. Volkswagen automobiles are inventive, unique, stylish, but also extremely convenient for families. Volkswagen is one of the world 's leading automobile manufacturers and the largest carmaker in Europe. Volkswagen markets its vehicles under multiple brands, including Volkswagen Passenger Cars, Audi, SEAT, Skoda, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania, and MAN. VW has factories in many parts of the world and also manufactures vehicles for local markets while continuing to expand due to their research and development.

According to James R. Healey (2011), reporter for USA Today, customers have lost confidence in Volkswagen’s quality. Volkswagen has been subjected to a real loss in the perception of its customers regarding its cars quality.

“In the early 1990s, Volkswagen’s (VW) sales in the US were declining, making it imperative for the company to start