Company Overview
Volkswagen is regarded to be a huge manufacturer of vehicles, falling into different brands Audi, Skoda, Bentley, Volkswagen passenger cars, Bugatti, Lamborghini and various Volkswagen commercial vehicles. Currently the company is headquartered in Wolfsburg, employing approximately 370 thousand people.
Strengths
The company has a concise mission statement, which sounds “Sustainable, responsible, social”. This indicates that the company has a powerful effect upon people, offering unique driving experiences achieved by quality and responsibility. One more strength is company’s brand that is established worldwide. Apart from resting heaving upon brand portfolios, Volkswagen also focuses upon relevant research and development in response to any economic changes, attempting to create the cutting-edge experience. Due to the fact that many subsidiaries are founded in all possible continents, Volkswagen is seen to have strong production capabilities, which contributes to constant increase of sales volumes. Over the last ten years production defects have been reduced by sixty percent.
Weaknesses
One weakness of the organization is that it poorly performs in Africa with very few production facilities. Respectively, unattractive geographic areas result in poor cash flows. One more point of concern is that company strives to employ as many people as it can, which leads to significant disadvantage of rather low employee productivity. Additionally, the company is noticed to have severe competition with most other global automotive manufacturers. Emerging markets are totally lost to competitors because of the lack of enterprises.
Opportunities
Currently, there is a huge demand for buses. Volkswagen can even accelerate it by increasing the production of its buses. After Globalization 2.0 there is a tendency to produce environmentally-friendly vehicles resting upon sources of alternative energy or reduced amount of oil. Taking that fact into account will motivate Volkswagen to produce more hybrid vehicles in order to increase sales and reduce emissions. There is also a potential growth in Asia, especially India and China.
Threats
One major threat was the world economic decline of 2009, which has led to essential weakening of automobile industry. In addition, all countries where subsidiaries are established have adopted a set of environmental protection regulations. And it would be difficult for the company to comply with them differently in different markets. This requires appropriate and diverse policy-making in all target markets.
References
Volkswagen. 2012. Official Website. HYPERLINK "http://www.volkswagen.co.uk/" http://www.volkswagen.co.uk/
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