SWOT Volkswagen PDF

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OPPORTUNITIES Opportunities are external factors that allow a business to grow and prosper over time in its industry. Due to several market developments, there will be various new opportunities available for Volkswagen in its industry. As purchasing power has been significantly increasing over the years, that serves as an advantage and opportunity to Volkswagen. This can be explained by the fact that how automobile was seen as a luxury in older times yet now, it is more of a necessity for most individuals, with the convenience of several loan and financing options available. Furthermore, as we are in a progressing economy, it can be predicted that hybrid, electric and fuel-efficient cars are the future of Automobiles. Due to an expected increase in fuel in the upcoming years and for environmental reasons, hybrid and fuel-efficient cars will be in high demands, thus allowing Volkswagen the opportunity to manufacture advanced vehicles with hybrid technology. Additionally, the demand for autonomous vehicles serve as a splendid opportunity for Volkswagen as the current generation is highly dependent on technology. (The Business Times, 2019) Fuel prices are expected to increase in the near future New technology advancements New trends in consumer behavior THREATS Threats are external factors beyond one’s control that place a business and its strategies at risk. Intense competition in an industry, especially in the Automobile Industry will always be in existence. For instance, new companies such as Tesla launching electric cars and Google working on projects such as self-driving cars pose a threat to the traditionally existing automotive industry. As discussed above how due to environmental reasons, Volkswagen will have the opportunity to produce alternative vehicles, however, this may also result in an increased cost of production. Additionally, advanced technologies developed by competitors could pose a serious threat as Volkswagen may not immediately be capable of coping up, resulting in lower profitability. There may also be lawsuits filed and scandals arising, such as the Volkswagen Emission Scandal in 2015 (Jolly, 2019) which has caused a damage to the company and brand’s reputation, resulting in consumers losing their confidence in the brand. On top of that, the company faced a massive €16.2 billion in damages and penalties imposed by lawsuits. https://www.strategicmanagementinsight.com/swot-analyses/volkswagen-swotanalysis.html http://fernfortuniversity.com/term-papers/swot/1433/1041-volkswagen.php https://articles.bplans.com/how-to-perform-swot-analysis/ https://www.theguardian.com/business/2019/sep/30/volkswagen-emissions-scandalmass-lawsuit-opens-in-germany

https://www.businesstimes.com.sg/transport/tesla-pushes-forward-on-autonomousdriving-with-new-computer-chip Berry, T. (n.d.). How to Do a Swot Analysis for Better Strategic Planning | Bplans. [online] Articles.bplans.com. Available at: https://articles.bplans.com/how-to-performswot-analysis/ [Accessed 26 Oct. 2019]. Jolly, J. (2019). Volkswagen emissions scandal: mass lawsuit opens in Germany. [online] the Guardian. Available at: https://www.theguardian.com/business/2019/sep/30/volkswagen-emissions-scandalmass-lawsuit-opens-in-germany [Accessed 26 Oct. 2019]. Jurevicius, O. (2016). Volkswagen SWOT analysis - Strategic Management Insight. [online] Strategic Management Insight. Available at: https://www.strategicmanagementinsight.com/swot-analyses/volkswagen-swotanalysis.html [Accessed 25 Oct. 2019]. The Business Times. (2019). Tesla pushes forward on autonomous driving with new computer chip. [online] Available at: https://www.businesstimes.com.sg/transport/tesla-pushes-forward-on-autonomousdriving-with-new-computer-chip [Accessed 26 Oct. 2019].

Discuss the company’s most important resources and capabilities using the Resource Based Theory to give the company a competitive advantage. The Resource Based Theory is a managerial framework which establishes the strategic resources a company adapts in order to achieve a sustainable competitive advantage in its industry. Volkswagen has been accused of cheating emission tests as they admitted that 11 millions of their vehicles were installed with a software that reportedly reduced emissions during tests. This caused a chaos as several lawsuits were filed against Volkswagen as most of the cars emitted approximately 40 times the authorized levels of nitrogen oxide in the environment (Gates et al., 2017) that was capable of causing health issues such as emphysema, bronchitis and several other serious respiratory diseases. This scandal was seemingly due to not acknowledging fundamental corporate governing principles (Ruddick, 2016). This scandal was a major offset for Volkswagen as they were faced with an approximate penalty of a whopping £1.2billion causing consumers to lose their trust in their brand and damage to the reputation. However, after several appeals and plea agreement, Volkswagen agreed on a settlement amount of $4.3bn. Moving forward, they ensured to get rid of the

technology that caused this ruckus and focused on improving in terms of sustainability. The current chief executive of Volkswagen addressed this crisis as an eye-opener and an opportunity to strengthen and accelerate overdue changes as well as to revise their priorities. This crisis has been

well-acknowledged and a commitment of developing a series of over 30 entirely electric vehicles by the year 2025 has been made, along with ensuring thereafter emission tests of vehicles are tested independently. (Ruddick, 2016)

This scandal caused Volkswagen  Relate the emission scandal faced by volkswagen- “dieselgate”  How volkswagen handled that crisis- installed new technology  Release of excessive nitrogen oxides Volkswagen’s most essential resources and capabilities are one the reasons the brand is still active in the market, despite the threats and drawbacks. The brand has however, invested large amounts of money in research and development to ensure their vehicles are produced in the most sustainable way bringing value to the company as well. Moreover, Volkswagen consists of an immense production infrastructure allowing producing vehicles across the globe in 120 countries with a highly competitive design. This allows Volkswagen to improvise on its production concepts and theories and ensuring they are aligned with the latest technologies emerged. Additionally, Volkswagen has managed to maintain a reputable brand image and strong global presence over the years even after the emission scandal degraded their reputation, Volkswagen managed to overcome and reposition itself in the industry....