Strategic Analysis Of Volkswagen

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INTRODUCTION

Volkswagen is a German Automotive which is considered as one of the most famous multiband group in the automotive industry and the largest in Europe with a market share value in 2014 of 11,1%, be second only to Toyota as it shows in the following pages where we analysed the market share. We chosen this company due to the fact that we really want to do a project that could be interesting and above all actual, in order to compare our analysis to what the company will do in the future. Firstly, we are going to introduce some aspects that are necessaries in order to have a full understanding of our project.
The world automobile market has continued to grow for years and a problem of this industry was the excess of capacity to produce
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The scandal which involved the company has been influencing the car market and the company has lost value and money that we could see the direct impact in the following table which shows the trend of VW’s stock which has had a dramatic decreased after the cheat emission:
The company has cheating the emission tests by making its cars seems less pollution than they are which affects at least 11 million cars worldwide which are 5 models in particular: Jetta, Beetle, Audi A3,Golf and Passat. Certainly, this impact has influenced not just the financial markets but the reputation of company too.THE EXTERNAL ANALYSIS
Automotive world market:
The automotive market has considerably suffered from the 2008 crisis, including Western markets. But today the automotive world market was able to recover and automotive industry has-been enjoying a period of relatively strong growth and profitability. It has now caught up and exceeded the pre-crisis level. The sale of passenger cars continues to rise, reaching in 2013 more than 80 million cars sold
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However, there is a significance increase of motorization in emerging markets, especially in Poland, Turkey, Brazil and China; while developed countries are approaching saturation.
Cars on the market – competition:
The competition on the market is very intense, Volkswagen, Toyota, Ford, Honda, General motors, “premium” brands are some of the most important brands on the market.
In Europe the "Premium" brands, Audi, Mercedes and BMW are the most represented. They are also very presents in South Africa and the USA. They account for only 8% in China but are increasingly in demand, since their growth is 30% per year. Citroen hopes destabilized the premium market with its DS range.
In Japan the market is dominated by local brands, which represent 95% of sales. Local brands are also present in Germany and France with respectively 57% and 53% of local brands.
The second-hand market dominates the new home market, particularly in Europe and the US, except in China and
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