Volkswagen Jetta Case Study: Scandal Impact and Opportunities

This case study provides an organizational analysis of Volkswagen Jetta, examining its position in the automotive industry, macro forces affecting its performance, customer and competitor landscape, and stakeholder interests. A SWOT analysis highlights the company's strengths, weaknesses, opportunities, and threats, particularly focusing on the impact of the emissions scandal on its reputation and market position in the United States and Australia. The study identifies the challenge of restoring brand value and leveraging a loyal customer base amidst increased market rivalry. References to relevant research and news articles support the analysis, offering a comprehensive overview of the factors influencing Volkswagen Jetta's success and future prospects. Desklib offers a variety of study tools including past papers and solved assignments to assist students.

Volkswagen Jetta

Volkswagen company
information
 Volkswagen is a German automotive
manufacturer company established
in the year of 1937
 The organization was established
under the supervision of Adolf Hitler
 The meaning of Volkswagen is
‘people’ car’

Organizational analysis

Industry
 Volkswagen company operates in the
automotive industry
 Jetta is a luxury sedan car
manufactured by Volkswagen

Macro force analysis
Political
•Making fuel
efficient cars
•Cars that will
cause no
environmental
effects
Environmental
•The recent scandal
of the company
regarding
manipulating the
amount of fuel
emission is a
massive set back
for the company
that ruined the
reputation of
Volkswagen
Social
•Innovative design
that can attract
more customers
Technological
•Various technological
advancements that
can effectively lower
the emission of
harmful elements
Legal
•The recent scandal
regarding
uncontrolled fuel
emission exposed the
company towards
Economic
• European
concerning economy
has a negative effect
on profitability of the
company

Customer analysis
 Jetta is a luxury sedan car
 The customers of Volkswagen Jetta
will naturally be affluent and niche
 Generally due to immense popularity
Volkswagen luckily have a loyal
customer base

Competitor analysis
 Hyundai, Skoda, Nissan ,
GeneralMotors, Toyota and Honda
are the major competitors of
Volkswagen.
 The above mentioned organization’s
sedan cars that has engine capacity
of 1.2 liters to 1.5 liters are the main
competitors of Volkswagen Jetta

Stakeholder analysis

SWOT analysis
Strength
• cheaper pricing
• innovative technology
•Loyal customer base
Weaknesses
• recent scandal regarding
uncontrolled fuel emission
• excessive fuel consumption
Opportunity
• Brand value
•Loyal customer base
• global recognition
Threats
• increased rivalry in the market
• decreased reputation in the
global market

Problem opportunity
statement
 Decreased reputation in the market
of United States and Australia due to
the recent scandal in manipulating
the software that determines fuel
emission of the car is a real problem
for the salability of Volkswagen’s
cars
 The brand value of the company and
a loyal customer base creates
opportunity for the management of

References
 Andrei, S. (2016). Strategic alliances of competitor companies in the automobile
industry.
 Barth, M., Bauer, A., Hughes, E., King, A., & Koerner, H. (2017). Volkswagen Public
Relations Plan.
 Brahma, I., Ofili, O., Campbell, M., Chiang, H., Giralo, V., Stryker, P., ... & Clark, A.
(2015). An Investigation into the Use of the EGR Cooler Pressure Drop to Measure EGR
Flow Rate(No. 2015-01-1639). SAE Technical Paper.
 Ewing, J. (2015). Volkswagen says 11 million cars worldwide are affected in diesel
deception. The New York Times, 22.
 Goel, A. (2015). Volkswagen: the protagonist in diesel emission scandal.
 Holland, S. P., Mansur, E. T., Muller, N. Z., & Yates, A. J. (2016). Damages and expected
deaths due to excess NO x emissions from 2009 to 2015 Volkswagen diesel
vehicles. Environmental science & technology, 50(3), 1111-1117.
 Hotten, R. (2015). Volkswagen: The scandal explained. BBC news, 10.
 Munden, R. F. (2015). Marketing and branding for a radiologist. Journal of the American
College of Radiology, 12(2), 130-131.
 Oldenkamp, R., van Zelm, R., & Huijbregts, M. A. (2016). Valuing the human health
damage caused by the fraud of Volkswagen. Environmental pollution, 212, 121-127.
 Reitze, A. W. (2016). The volkswagen air pollution emissions litigation. Browser
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