Volkswagen Case Study: Volkswagen

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COMPANY OVERVIEW Volkswagen is a German automobile manufacturer established in 1937 by the German Labor Front (Deutsche Arbeitsfront) headquartered in Wolfsburg, Lower Saxony, Germany. Volkswagen is the top-offering venture of the Volkswagen Group, the greatest German automaker and the second biggest automaker on the planet. Volkswagen signifies People 's car in German. Its current motto is "Das Auto" (The Car). Volkswagen has three autos in the main 10 rundown of top of the line autos ever: the Volkswagen Golf, the Volkswagen Beetle, and the Volkswagen Passat. PROBLEMS/ISSUES FACED The major problems that the company is facing are: • Declining sales • Stiff competition from Japanese manufacturer • Competitive pricing of the new beetle • If the price is set too high, consumers might trade up into a higher-priced segment and bring in more competition from higher end models. • If the price is set too low the car might not be attractive enough to dealers due to low profit margins and thus fall short of VW’s profitability goals. • How much vintage touch should the new model have? • Rebuilding Volkswagen’s image through the New Beetle. SWOT Analysis Strength • Bestselling car design in history with modifications • Different and Eye-catching design • Premium safety features in small car segment • Highly reputed brand Weakness • It is small car-consumer preference shifting towards larger car segment, such as Sedan, SUV etc. • Brand loyalty towards American
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