Strategic Analysis of Volkswagen Company

This report provides a strategic analysis of Volkswagen Company, including an overview of the company, Porter's Five Forces Analysis, PESTLE Analysis, and Value Chain Analysis. It discusses the strategies adopted by the company to sustain its position in the market.

EXTENDED PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of Volkswagen Company. ..............................................................................................1
Porter’s Five Forces Analysis..........................................................................................................1
PESTLE Analysis ...........................................................................................................................1
Political factors.......................................................................................................................2
Economic factors....................................................................................................................2
Social factors: ........................................................................................................................2
Technological factors ............................................................................................................3
Environmental factors............................................................................................................3
Legal Factors..........................................................................................................................3
Value Chain Analysis......................................................................................................................3
Inbound logistics....................................................................................................................4
Operations Management.........................................................................................................4
Marketing and Sales ..............................................................................................................4
Services...................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
This present report based on the aim of Volkswagen business which is most leading
consulting company in UK. Present report will discuss about the company functions and strategic
analyse tools such as SWOT, value chain, PESTLE and porter's five forces model. Besides
present report will discuss about the strategies adopted by the company to sustain its positive in
the market. Overall, it is the leading consulting company which helps clients with digitizing the
core transforming their IT functions.
Overview of Volkswagen Company.
Volkswagen is the most well-known brand in the automotive manufacturing company
which provides various luxurious services to their buyers. Volkswagen has many offices in
Europe, North America and Asia Pacific. The main aim of the company is to grow in the market
for the coming years. Along with that, company also needs to adopt the latest technologies and
technologies in order to provide best services and automotive services to their potential clients.
Besides, the focus of the company is to helping the clients and provide them luxurious
capabilities and combine them together in a more competitive form. Working collaborative with
the colleges from BCG, digital ventures and gamma they bring opportunities for their clients in
order to accomplish their needs and wants. The work of the organisation is always as per the
client wants and needs. So that achieve their overall company objectives and earn effective profit
revenue. It also leading luxurious brand in auto mobile sector. Along with that, it also provides
vehicles, motorcycles, engines and turbo-machinery services to their customers. Besides this, it
also provides financing, leasing and fleet management.
Porter’s Five Forces Analysis
Covered in poster
PESTLE Analysis
PESTLE Analysis is the tool which helps to determine the external macro factors in the
business environment. Moreover, it provides some information and opportunities forb the
industry and for the companies as well. Besides, is the set framework which defines the overall
model of the organization in order to minimize the external risk factors. Moreover, the facts of
the organisation are to analysis the political, legal, environmental, social and technological
factors.
1

Political factors
Volkswagen is the leading consulting firm in the UK. Moreover, moreover it takes time
makes the political changes. Volkswagen influenced by the political factors which affects the
company directly these external factors are the uncontrollable factors through which company
has to change their planning according to them. Political factors affect company tariffs with
international trade, increased regulations may changes the company prices of the product
services. Along with that, it also affect the company overall structure due to changes in political
factors interest rates and government policies.
Economic factors
Economic factors is the another major external factors which influenced company
policies and working strategies. Economic factors include diversification, economies of scale and
capacity, inflation and deflation (Liebich, 2014). These factors affect the individual company.
Due to changes in interest rates company many changes in the prices due to which customer will
attract less towards the company products. Along with that it is very important for the company
to make sustainable strategies in order to compete with the external factors and maintain their
position in the market. Along with that it helps company to make company capable to adopt new
policies and business plans in order to meet the needs to customers.
Social factors:
In business environment social factor is the most significant factor through which
company get good image and bad image as well as per their policies. In order to get completive
advantages, organisation needs to adopt fair activities and business practises in order to
contribute the part into correct manner (Linares-Navarro, Pedersen and Pla-Barber, 2014).
Along with that, it also needs to provide the best changes so that it provides better understanding
between the customers. Social factors also influenced the behaviour of customers. Like, if
Volkswagen adopts CSR activities to contribute their part in social welfare it impacts positively
on the overall activities. It gives new opportunity and growth factor to the company through
which they adopt some advanced strategy factors. Moreover, it also provides some new
techniques in order to meet the needs of customers. Company needs to make services or products
which are preferable for the customers and give good impact on the overall business activities.
Besides this, social factors also help the company to make new business and product plan as per
2

the needs of current environment. Along with that, it also very helpful to make new sales chart
and opportunities.
Technological factors
Technological factors are external factors which influence company environment. This
factor provides innovative and creative changes in order to enhance overall performance. This
factor helps to determine the current technologies in the market. Volkswagen having the different
competitors which provides the same services such as Toyota, Ford, BMW, Mercedes etc. in
order to beat them Volkswagen needs to adopt the latest technologies to enhance the luxurious
services and auto mobile to the potential buyers (Mathooko and Ogutu, 2015). Volkswagen
needs to invent new cars, AEV model, and internet car buying, manufacturing efficiency. These
factors of Volkswagen give them strong sustainability in the long term market.
Environmental factors
Environment factors of the external forces influence company strategies. In order to
invent new cars and latest technologies. Company also need to maintain the environment healthy
and do not invent polluted services for the customers. Moreover, Volkswagen needs to make
healthy and safe moreover it also helps to provide best services for the customers in order to
mitigate the negative effects. Volkswagen adopts Carbon footprints in order to maintain healthy
and safe environment. Along with that company also needs to contribute their part for the
betterment of country environment (Mol, 2015).
Legal Factors
Legal factors are the most significant factor which influenced company structure. Legal
factors imposed by the government in order to maintain safe and secure environment in the
country. Company needs to adopt legal forms and regulations to run their business into smooth
manner. It makes good relationship between the company and government.
Value Chain Analysis
Volkswagen provides affordable cars from the German people. It provides the premium
vehicles for upper class customers. It requires different techniques and procedures to form a
finished cars and services. Overall it, they detect all activities in the systematic manner.
According to the Porters each activities can generate advantages for the company and enhance
good effects. In auto mobiles companies both the factors plays very important role in order to
accomplish the task (Rothaermel, 2015). They need to analyse the customer needs and wants to
3

ensure the product effectiveness. In terms of Volkswagen group they focus on the prime areas
and always adopt prime equipment and material to form a luxurious brand and focus on the
superior vehicles in order to maintain quality, design, innovation and technology. These are the
unique values of the company which appreciate by the consumers and willing to pay high prices.
This process also enhances the profit margin for the company and maintains the good public
image.
Inbound logistics
It affects the overall logistics functions reflect by the overall cost leadership strategic
management (Abbott, 2015). Volkswagen needs to adopt the latest technologies and
acquirements in order to make innovative and effective cars and auto mobiles. They need to
focus on the best services in order to gain more profit margin. Besides, company also needs to
adopt high equipped technologies to ensure quality.
Operations Management
Operation management of the company should be according to the plan. This helps to
make effective output and effective output. Besides this, operation activity must be very perfect
and according to the plan. As per the needs and requirement.
Outbound Logistics:
To enhance the customer exposure, company needs to enhance the outbound logistics to
attract the potential customers towards the company (Jarzabkowski and Kaplan, 2015).
Volkswagen stores must be creative and same as per the all stores of the company which helps to
attract the buyers' attention (Mathooko and Ogutu, 2015).
Marketing and Sales
Marketing activities of the company must be graceful and innovative to enhance the
marketing sales in the market. Company needs to adopt the latest technologies and strategies. to
enhance the promotion and marketing proposal (Holweg and Helo, 2014).
Services
Cost leadership and customer oriented approach of the company helps to develop the
public image in the market. Services of the organisation gives positive impacts on the customer
minds. This process encourages customers towards the company. Volkswagen services for
customers are brilliant which provides full stratification the buyers (Donovan, 2015).
4

CONCLUSION
From the above analysis, it can be concluded that company has to be very competitive
and challenging in order to meet the needs of customers. It discussed the PESTLE analysis of
Volkswagen and Porter’s five forces model which helps company to analyse the competitive
advantages for the company. Furthermore, Volkswagen should adopt technological changes and
provide the best services to their potential customers in order to make the best public image.
5

REFERENCES
Books and Journals
Abbott, R. J., 2015. Pestle Analysis for Students. Sage.
Donovan, J., 2015. Guides for value chain development: a comparative review. Journal of
Agribusiness in Developing and Emerging Economies. 5(1). pp.2-23.
Gamlath, S. L., 2014. Outcomes and observations of an extended accounting board
game. Developments in Business Simulation and Experiential Learning. Pp. 34.
Hadida, A. L. and Paris, T., 2014. Managerial cognition and the value chain in the digital
music industry. Technological Forecasting and Social Change. 83. pp.84-97.
Hammad, A., 2015. Strategic Change and Its Management to Expand Business through
Implementation of Models: A Case Study of Boots UK. Routledge
Holweg, M. and Helo, P., 2014. Defining value chain architectures: Linking strategic value
creation to operational supply chain design. International Journal of Production Economics. 147.
pp.230-238.
Jarzabkowski, P. and Kaplan, S., 2015. Strategy tools‐in‐use: A framework for
understanding “technologies of rationality” in practice. Strategic Management Journal. 36(4).
pp.537-558.
Liebich, G., 2014. Systems and methods for modeling costed entities and performing a
value chain analysis. pp. 13-16.
Linares-Navarro, E., Pedersen, T. and Pla-Barber, J., 2014. Fine slicing of the value chain
and offshoring of essential activities: empirical evidence from European multinationals. Journal
of Business Economics and Management. 15(1). pp.111-134.
Mathooko, F. M. and Ogutu, M., 2015. Porter’s five competitive forces framework and
other factors that influence the choice of response strategies adopted by public universities in
Kenya. International Journal of Educational Management. 29(3). pp.334-354.
Mol, A. P., 2015. Transparency and value chain sustainability. Journal of Cleaner
Production. 107. pp.154-161.
Rothaermel, F. T., 2015. Strategic management. McGraw-Hill Education.
6