Volkswagen 's Competitive Growth And Profitability

Porsche is a luxury standard in the automobile industry. With the emergence of the Sports Utility Vehicle (SUV) the Porsche Company has thrown their hat in and made a positive threat to all other luxury automobile manufacturers. The story of Porsche began in the Czech Republic and almost died during the Adolf Hitler reign. The owner Dr. Porsche was summoned by Adolf Hitler to help with the Volkswagen assembly. Soon after the war he was arrested and jailed for his participation with the German Nazi’s. Throughout the years Porsche developed over 11 types of series and continues to thrive making Porsche the name synonymous sports luxury. The major competitors of Porsche have not been able to surpass the Porsche company due to having outside influences interpose their ideas to implement new vehicles. Solely one family owns the Porsche Company, and this has allowed them minimize the amount of outside influences to steer them away from their core competencies. In this paper you will read about the history, the major competitors, the financial performance and condition. While reading you will understand a SWOT analysis of the Porsche Company and will be able to understand why Porsche is the premier Brand that it is.

They are one of the top selling car industries in the world with Volkswagen Golf being an

The automotive industry globally involves the processes of manufacturing as well as sales of cars and other automobiles. The business of this industry is also inclusive of retailing activities like services; sale of spare parts, gas-station retails etc. by the year 2015, and the growth rate of the industry is expected to have a rise of 5.5% (Market Line, 2012). Moreover, as per International Organization of Motor Vehicle Manufacturers, this industry is the leading driver in terms of global economic progress and the largest employer. The changing trends and rising demand for technically advanced cars are giving out more opportunities. This essay is going to be a presentation on the analysis of the Volkswagen positioning strategy with respect to the Porters models of competitive strategies. This essay would be vital, as this analysis would help in revealing the company’s competitive and strategic position in the industry.

Over the past several decades, Volkswagen of America (VWoA) has struggled with finding and maintaining a steady growth rate. Instead, over the past 40 years the company has had large peaks and valleys in the number of vehicles sold.[1] One plan to smooth out the growth curve was to position the company into two main categories, classic and sport. This positioning led the company to plan for future growth throughout the brands, as well as define five clear goals for the company to manage its growth.[2] These five goals highlighted several areas of opportunity for the IT department in the company as well as within VWoA.

Volkswagenwerk was moved to increase the military power of Germany after 1940’s and its industrial power was given into the order of the army in order to produce long missiles, vehicles. The control of the company was given to an executive comitee which included members from the company itself, The Ministry of Economics, Federal Republic of Germany and Administration of Saxony. Volkswagen produced the first engine with air cooling system as proving its motto “We produce technology, others apply”. Main reason of that development depends on problems Germans faced during the Second World War in Russia because of lack of performance of engines with water cooling system. The company was reorganized by Heinz Nordhoff

People should also consider the fact that VW AG also funds Lamborghini, Bentley, Bugatti, Porsche, Audi and Skoda. All in all Volkswagen has some impressive engineers under their belt, if we allow them to continue they will literally amaze with their refocused Electric potential. Mind you they made an actual (limited) production hybrid (the XL1) that achieves 261 miles per gallon… unfortunately, that was a diesel

Volkswagen Group is a German transnational automotive manufacturing corporate which headquartered in Wolfsburg, Lower Saxony, Germany. It was founded in May 28, 1946 which is 69 years ago from now. In German, Volkswagen means “people’s car” in German. Volkswagen Group manufactures passenger cars, commercial vehicles, motorcycles and also engines. Volkswagen is a subsidiary company of the Volkswagen Group, and it is also the top-selling brand among the Volkswagen Group. Besides, due to the successful management of the company, Volkswagen Group has been maintaining its prime as the largest market share in Europe for more than two decades. As of 2013, it deserved the ranking of ninth in the Fortune Global 500 list of the world’s largest companies.

BMW Group, headquartered in Munich, Germany, is one of the most successful part multi kind finest engine producers in the globe. BMW is a German engine; motorbike and apparatus makers established in 1916 and have been generally exchange subsequent to 1969. The organization's trademark in English is "The Ultimate Driving Machine" and Sheer Driving Pleasure". The first German motto is "extortion am Fahren," which means "satisfaction in Driving" in English. The organization create, and advertise, a pied decision of senior end dynamic autos and bikes. It is additionally own and make the small item and is the guardian business of Roll-Royce vehicle Cars. BMW is known for its execution and extravagance vehicles.

A Competitive Advantage is a peculiarity for an organization between it's competitors . It's achieved either by lowering prices or by greatening the value of the product or by offering luxury service and benefits to cope with high prices .

To achieve Volkswagen Group’s goal of becoming number one in customer satisfaction and quality, the company must continue to increase its ecological standards in the manufacturing of its vehicles, which could include specifically, powertrains and lightweight construction. (VW AG) This will help the Group to continue to reduce its global footprint, which will fundamentally be the reduction of carbon emissions. Customer satisfaction is also achieved by Volkswagen Group with its large array of brands that are maintained by the company. From the low cost Skoda and Seat brands to the to the extremely high cost Lamborghini and Bugatti, with the Volkswagen and Audi brands servicing its middle class customers somewhere in between. With brands that span all income levels, Volkswagen Group has become the most successful multibrand automobile manufacturer in the world.

Volkswagen-FAW Engine (Dalian) Co., Ltd., founded on 06.02.1991, is a Sino-German joint venture of Volkswagen (China) Investment Co., Ltd., and China FAW Group Corporation. The total investment is about 15 billion yuan in registered capital of nearly 10 billion yuan. Of which Germany accounted for 60% and China accounted for 40%. The total program for annual output of 300,000 engines.

Volkswagen Group, one of the leading automobile manufacturers in the world, has been on an impressive incline in the market with a continuous rapid international expansion. Unlike other reigning companies such as Toyota Motor Corporation

Each of Volkswagens facilities are engaged in the advancement of local framework and research, setting up projects in the fields of health promotion, and sport and nature conservation (Yang, Colvin, and Wong). Volkswagen is focused on enhancing the living situations of individuals at their locations, exceeding the base statutory necessities. Volkswagen has a long practice of watching over the welfares of the neighborhoods in which their production facilities are located (Yang, Colvin, and Wong). By looking after these regions Volkswagen can guarantee improvement for their employees and their customers located in this area.

The increasing numbers of sub-model cars can also affect the brand quality through increasing any risk issues once launched to the public. Furthermore, according to (Stephen, 2004) Mercedes customers have high expectations about the high quality promised by the company. In 2003, the company disappointed many customers when they sold over 2000 vehicles with an extra option for a navigation system, which were not ready to be delivered at the right time, also accompanied by other mechanical issues. On the other hand, the company made an announcement about its new high quality hydraulic breaking system, which increased its competitiveness in terms of safety and quality against other competitors in the industry.

However, due to its unique targeting strategy, it has not win compatible brand recognition among the public. Although Audi enter much earlier than BMW and Benz in the luxury car market, its marketing strategy limited increase of public brand recognition even Audi has over 100 years’ history. Besides, although its styles are highly accepted by the targeting customers, there are a growing number of people who can afford luxury cars for family use in China. Lack of vitality is limit of its further market expansion. On the contrary, its major competitor in China, BMW, has launched a series of marketing strategies to promote its high-performance, manoeuvrability, as well as stylish design to attract young people (BMW, 2009) in order to expand its market share. Therefore, although Audi has achieved success in the targeting market, it may consider further development through diversification in product line and advertising campaign.