Volkswagen Business Analysis: Competitive Advantage and Recommendations

EXTENDED BUSINESS PROJECT
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Table of Contents
Introduction...................................................................................................................... 3
Company Overview..........................................................................................................4
Competitive Advantage....................................................................................................6
Analysis Tools..................................................................................................................8
Recommendations......................................................................................................... 11
Conclusion..................................................................................................................... 12
Reference List................................................................................................................ 13
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Introduction
The project shall provide an overview and analysis of the business operations
performed by the famous German multinational automotive company, Volkswagen.
Volkswagen is synonymous to perfection and excellence in the automotive world. The
report shall highlight the competitive advantages possessed by the company and
explain how they help in gaining an edge over its competitors. It shall explore and
examine the workings of the business with the help of various tools such as PESTLE
and SWOT. The approach of the construction of the project shall assist in gaining
relevant information regarding the external and internal environments of the company.
The assignment after the analysis through the mentioned frameworks shall highlight
areas that require improvement by providing recommendations to enhance its
productivity.
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Company Overview
The company, Volkswagen, was formed and provided the name Volkswagenwerk
meaning the “The company building people’s car” in the year 1937 (Denning, 2015).
The company was initially run by the Nazi organisation, German Labour Front. The
geographical location of headquarter of the company still remains the same and is
situated at Wolfsburg, Germany. The company has been, since its inception, focusing
on delivering quality products for the mass at prices that are far more affordable as
compared to other rivals in the market keeping the quality in consideration.
Figure 1: Market share in relevance to new automotive registrations of Volkswagen in
the EU from June 2017 to July 2018.
(Source: Volkswagen, 2018)
Volkswagen was the largest automaker in the worlds in aspect of sales in the year
2016. This year saw the company producing approximately 10.1 million automotive
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