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Analysis on the Global Strategy of Volkswagen - Essay Example

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Analysis on the Global Strategy of Volkswagen

The cars underwent testing by the automakers and the Nazi troops. In 1938, they set up a plant in Wolfsburg to continue its massive production for the German people. However, the Second World War changed the car production of Volkswagen into a military vehicle. Volkswagen was named as Wolfsburg Motor Works while British desired to eliminate the beetle name. Despite their effort, Volkswagen remained in the history. The cars were produced to serve the countries involved in the war, which destroyed the future of Volkswagen (Gunnel 6-7). The future of Volkswagen became certain due to Heinrich “Heinz” Nordhoof as the general manager. Massive production of the beetle was distributed throughout France, Germany, Britain, and the Netherlands. In 1949, British government returned the ownership of Volkswagen to Germany. The Volkswagen continued to produce car for commercial and luxury. It has achieved its goal to excel the “legendary mark” attained by the Ford Motor Company’s Model T. Moreover, the first design was altered to large car production. The popularity of Volkswagen increased with the introduction of the Golf GTI (“Brief Journey”). With its commitment to innovation, the Volkswagen continued to evolve in matching the preference of its customers. The main thrust of this paper is to analyze the global strategy of Volkswagen as the global leader in the automotive industry. ...
By being number one, it means that Volkswagen has to surpass Toyota. According to The Guardian, Toyota was able to overshadow the General Motors, which was once the number one car dealer (“Toyota Holds”). The company aims to be the “global economic and environmental leader among mobile manufacturers” in 2018. To achieve the company’s goals, the Volkswagen attempts to innovate and utilize technologies but retaining the core aspect of customer satisfaction and quality. Second, the unit sales must increase above the average of 10 million cars a year since the market continues to expand. Third, the 8 % increase in the return sales of Volkswagen before tax to secure its financial situation, and its capacity to operate despite the crucial market environment. Lastly, the company aims to be the best employer among all companies, brands, and regions; hence, Volkswagen must create a first class team (“Strategy”). Furthermore, profitability is the main purpose of Volkswagen group, so that it remains viable in the car production. The economic condition affects their profitability, but they strive to achieve economic balance in their system. The capital expenditure must remain at the manageable position while the company achieves efficiency and flexibility. Global Strategy Multiple Brand-Strategy Multiple brand strategy is the common trend in the automotive industry. Volkswagen is divided into two forms: classic and sporty. The classic brands include VW, Skoda, and Bentley while sport brands involve Audi, Seat, and Lamborghini. Brand name is remarkably sensitive in the target market of the automotive industry (Schmid 3). That is why it is crucial ...Show more

Summary

Analysis on the Global Strategy of Volkswagen Introduction The journey of small cars began in the late 1930 where Dr. Ferdinand Porsche challenged the development of cars for the German people. This idea was postponed due to the involvement of other projects and designs on the cars’ prototypes…
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