Volkswagen Strategic Analysis 2023 Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the broad macro-environment and micro-environment of Volkswagen across its market with a primary focus on the challenges faced by Volkswagen.
- Evaluate an organization's strategy, and business environment in order to identify issues, risks, and opportunities and how they affect its operations and strategic position in a market, using concepts such as PESTLE, SWOT, Porter's Five Forces, VRIO, and generic competitive strategies.
- Understand the concept of a strategy analysis and how to apply it to a real case study company.
1.0 INTRODUCTION
Volkswagen is one of the world's leading automotive companies, founded in 1937 and headquartered in Wolfsburg, Germany (Reuters 2022). The company produces and sells passenger cars and light commercial vehicles, as well as developing vehicles and components for its group brands. The company has a global presence, with 119 production sites in 19 European countries and 10 countries in the Americas, Asia, and Africa. VW employs 676,000 people worldwide and sells its vehicles in more than 150 countries. In 2022, Volkswagen increased its total revenue to €279.2 billion, compared to €250.2 billion in 2021.
The automotive industry is one of the most dynamic and competitive sectors in the global economy, facing various challenges and opportunities in the 21st century. This report will use the case study of Volkswagen, one of the leading car manufacturers in the world, to analyze how it responds to the macro and micro environmental changes in its industry. The report will apply several strategic frameworks, such as PESTLE, SWOT, Porter's Five Forces, VRIO, and generic competitive strategies, to evaluate Volkswagen's external and internal environment, its sources of competitive advantage, its technological innovation, its pricing strategy, and its financial performance. The report will also provide some recommendations for Volkswagen to improve its strategic position and performance in the future.
An internal and external analysis of Volkswagen answers key questions such as; what are the external strengths of Volkswagen? What are the four external factors in the macro environment that influence Volkswagen? What is the market strength of Volkswagen? What challenges are Volkswagen facing? What are the weaknesses of Volkswagen?
The report will provide a comprehensive analysis of the current and future trends in the automotive industry, as well as the opportunities and threats that Volkswagen faces in its growth markets. The report will also suggest strategies and actions that Volkswagen can implement to overcome the challenges and leverage its competitive advantages while maintaining its growth and expansion goals in the face of increasing competition and regulation.