Strategic Analysis of Volkswagen using Porter's Five Forces

This report presents an analysis of Volkswagen's competitive environment using Porter's Five Forces model. It examines key factors influencing Volkswagen's strategic position, including the threat of substitute products and services, the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, and the intensity of competitive rivalry. The analysis highlights the importance of adapting to changing market conditions and emphasizes the need for Volkswagen to implement strategies to maintain its competitive advantage. The report also discusses the impact of these forces on Volkswagen's overall objectives and suggests strategies for the company to improve its performance. Moreover, it emphasizes the need for Volkswagen to enhance its performance and create a competitive environment in the market. The report also looks into the power of buyers, competitive rivalry, and bargaining power of suppliers.

Porters Five Forces Analysis
In order to analysis competitive advantage company needs to adopt this five forces
model to determine the competitive advantages to carry out the structure analysis of
the business. This tool or technique helps to measure the different aspects or factors
which may affect the overall company objectives of VOLKSWAGEN.
Threats of substitution
This is the first factor of five forces which defines the importance of
substitution product and services which affects the company services.
VOLKSWAGEN needs to adopt more techniques and strategies for their clients in
order to retain those clients and buyers. Moreover, VOLKSWAGEN needs to open
more companies in across the world to expand the business activities and profit
revenue as well. It is very easier for the client to adopt services from any of the
consulting firm which provides their services at low price. So that, it is very
important for the organization to follows the correct path and make itself more
completive in among others. Besides, VOLKSWAGEN should provide best
consulting services to their clients in order to get maximum satisfaction level.
Competitive Rivalry
This factor of five forces helps to examine the current competitive ratio in the market. This ratio
defines that how many companies supply the same product and services at various process. This helps
company to set their own prices and strategies in order to get competitive advantages. VOLKSWAGEN
needs to adopt the latest technologies which makes company different from others and provide best
services to the clients. Moreover, this factor helps company to measure the external environment in order to
make best services and plans.
Bargaining Power of suppliers
This is the other important factor for the company in order to bargain with the suppliers in order
to minimize the additional cost and expenses. Furthermore, it requires some short skills and knowledge to
deal with the suppliers. When number of buyers are more and number of suppliers is less in that condition
suppliers charge their own price and when supplier are more and number of companies are less in that
situation buyers decide the price of the services or products. Business has benefit when there are multiple
suppliers are available.
Threat of new Entrants
Entrants of new company may occur big issue for the existing ones. This factor affects the overall
industry and individual firms in order to get profit revenue. For that, VOLKSWAGEN Company needs
enhance the overall performance of the company to create challenges and competitive environment in the
existing market. This factor involves risk which affects the company policies and strategies. Like other rival
companies and its service strategies give heavy losses to the other companies as well. In order to fill the gap.
Organisation needs to adopt the latest techniques and client’s needs and wants. This process helps
VOLKSWAGEN to attract large number of customers towards the company services.
POWER OF BUYERS: It is another driver forces which impact on the company functions. It is another factor
which described as the market of outputs. It gives impact on the customer sensitivity to price changes.
VOLKSWAGEN needs to adopt serious measures to reduce the buyer power, like adopt higher quality of
luxurious services with four wheelers and give them the best unique services in order to reduce the power.
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