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Volkswagen's Pest Analysis

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Volkswagen, largest German multinational automobile manufacturer which it’s headquarter is located in Wolfsburg, Germany founded on May 1937 by the founder, Ferdinand Porsche. According to the European Automobile Manufacturers Association, Volkswagen had maintained the major market shares in the Europe for twenty years. In 2014, Volkswagen is ranked as the eighth in the Fortune Global 500 largest company list ranked by the yearly revenues. Other than manufacturing of engines, passenger cars, commercial vehicles and motorcycles, the Volkswagen group also offering financial services such as leasing and consultancy. As mentioned above, Volkswagen group owning 12 different brands which are Volkswagen, Audi, Bentley, Bugatti, Seat, Skoda, Lamborghini, …show more content…

The analysis examines four areas of interest which are political and legal environment, economic environment, social and cultural environment and also the technological environment. It is very important for Volkswagen to identify their PEST analysis because this can provide a wider understanding of the business environment, for example, help the company to spot opportunities.
Political Factors
Volkswagen has face many political difficulties in its development as it is a company is not present in just two or three countries but more than 150 countries. Obviously Volkswagen is facing different political situation in different countries. Political situations of all the countries are not same and accordingly Volkswagen has to make its strategies like the political situation in Europe is different from Asian countries. Car industry is closely related to the political made by the government of a …show more content…

Automobile company affects the society in which it operates as a whole. Society for Volkswagen is big and different from place to place. On the other hand there are some social issues which a car manufacturing company needs to handle like some religious faith. With the cars having high speed chances of accidents increases which creates a negative sense in the society.
In recent years, the demand for fuel efficient car has been increase, thus, Volkswagen has successfully introduced their new product which is Volkswagen XL1and was claimed as the most fuel efficient car in the world. Above and beyond the demand for fuel efficient cars, ecofriendly is also one of the social factors that took part in Volkswagen. Volkswagen is improving their skills in order to design or produce a car that is friendly to the environment in order to fulfill their customer’s demand on eco-friendly vehicles. The other benefit of owning a German manufacturer car which is their slowest ratio of value loss among the other car

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