In order for MNCs to operate effectively and gain a competitive advantage it is important to assess the competitive position and the relationship between success and strategies. In a highly competitive market it is very important for companies to gain a competitive advantage over its competitors. This can be achieved by either cost advantage or offering differentiated product. Hills work suggests that the differentiation strategies in the automobile sector in China can be beneficial because of many reasons like Chinese automobile is an expanding market and is the world’s second largest automobile industry, therefore has a lot of potential for business. Automobile industry in general has a lot of potential for differentiation strategies and gaining market through it which is evident by the lavish expenditure done on the promotion of these cars. (Chen, J., & Yao, S. 2006; Barrow, C. 2009)
This paper will focus and discuss Volkswagen’s globalization strategies for internalization, how it formed strategic alliances globally and how it positioned itself for global competitiveness through its formulated strategies and built strategic ventures and alliances.
Volkswagen dates back to 1937, was founded by Ferdinand Porsche who started it as an automobile advisory company. Being unsuccessful in selling his proposed model he collaborated with Nazi Government to setup a factory and produce the cars of his proposed model. ...