Volkswagen in the US: Shifting Global Strategies

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The Volkswagen Group (VW) is one of the world's leading and most respected auto manufacturers, showcasing such premiere brands as Skoda, Seat, Lamborghini, Bugatti, Audi and the New Beetle to over 150 markets worldwide. A truly global company, the company was ranked 42 in the Global Brands Scoreboard as reported in Business Week 2003, besting thousands of other corporate brands (SDL, 2006).

Introduction

The first section provides brief literature review on globalization within the context of the automotive industry wherein VW operates. This will be followed by background information on Volkswagen's global operations, with a particular emphasis on its operations in America. The second section discusses globalization and the issues affecting Volkswagen with respect to its promotion and distribution strategies. The final section explores the international structure most appropriate for VW based on its current position in the world market.
At its most fundamental, globalisation refers to the world as one big market and source of information. It is characterised by a free flow of goods, people and information around the world, an internationalization of economic processes and the emergence of world markets (Lemoine, W. and Dagnaes, L., 2002). Consequently globalization has given rise to new concepts such as global industries, organizations and strategies used to market and sell global products, brands and services. ...
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