Volkswagen Swot Analysis

Table of Contents

1. Introduction 2

2. Situation Analysis 3

2.1 Market Summary 3

2.2 SWOT Analysis 3

2.3 Products offered in the Middle East 3

2.4 Competition 4

2.5 Keys to Success and Critical Issues 5

3. Marketing Strategy 6

3.1 Mission 6

3.2 Marketing Objectives 6

3.3 Financial Objectives 7

3.4 Target Market 7

3.5 Positioning 7

3.6 Strategy Summary 8

1. Introduction

Volkswagen, a brand which stands out from the crowd is the top automotive manufacturer in Europe and also one of the top automotive manufacturers in the world. Volkswagen started by creating tanks and driving equipment for Nazi Germany during World War II.

Volkswagen grew over the next decades by acquiring new brands and introducing new models to meet the consumer’s expectations.

2. Situation Analysis

2.1 Market Summary

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2.2 SWOT Analysis

SWOT Analysis for Volkswagen in the Middle East can be seen in the table below.

SWOT Analysis

Strengths 1. Wide range of cars which provides enough options to choose from

2. High brand presence and recall

3. One of the oldest car manufacturers, resulting into increased reach to masses

4. Owner of Audi, Bentley, Bugatti, Lamborghini, Skoda which gives a wide and large customer base

5. Has over 350,000 employees globally

6. Volkswagen has manufacturing or assembly plants in Germany, Slovakia, China, India, Indonesia, Russia, Brazil, Argentina, Portugal, Spain, Poland, Bosnia and Herzegovina, and South Africa

7. Volkswagen also has presence in hybrid cars and motorsports

Weaknesses 1. Intense competition from global Car manufacturing companies

2. Limited presence in emerging markets where some other brands have taken over the market

Opportunities 1. Create long term relationships with non-German car

Volkswagen has successfully diversified the positioning of their products to reach most consumers.

To achieve their mission as the leading global automotive manufacturer by 2018 few of their products might need repositioning. For example, Volkswagen has been trying to reposition the VW Beetle from a cute car preferred by girls to a track inspired car preferred by young adults. Various ads were shown with taglines like “Relax guys. It’s okay to drive”. Even though the repositioning could take time, this healthy approach shows that Volkswagen is fully committed to its mission of being the world’s leading automobile manufacturer.

Increasing concerns over environment has increased the market of consumers preferring environmentally friendly vehicles, making it a growing niche market. Volkswagen has capitalized on this market by successfully positioning VW Jetta Hybrid as one of the most environmentally friendly cars in the