Introduction
Volkswagen is a car manufacturing industry in Germany. The industry currently has three of their cars in the top ten best cars globally. Their three cars in the top ten are Volkswagen Golf, Volkswagen Passat and Volkswagen Beetle. Volkswagen is a German word which means peoples cars. Volkswagen was founded in 1937 by Ferdinand Porsche. Headquarter is in Wolfsburg. The current chairman of the company is Martin Winterport. The company is among the best automobile company in the world. The company has achieved this through their strategies over the years. They have done so much to stay on the industry and dominate. This report majors on the market identification and PESTEL analysis of the Volkswagen.
Volkswagen is a big group and is majorly divided into two parts. The group is known for its two major categories. The first category is the classic brand group. The cars in this category include cars like Volkswagen, Skoda, Bentley and Bugati. The second category is the sporty brand group. Example of cars in this category includes Audi, Seat and Lamborghini. Due to its success in the market, it now sells the cars in more than one fifty countries globally. Volkswagen has managed to dominate most of the important market in the whole world. Currently the main markets for Volkswagen are Western Europe, Brazil, China, The US, Mexico and Russia (Ewing 2015, pg 1). The company has been able to maintain competitive market. The company has been able to increase its market shares over the years.
PESTAL analysis
Just like any company Volkswagen strategy and decision making is influenced by Political factors, Economic factors, Social factors, Technological factors, Environmental factors and Legal factors.
Political factors: Volkswagen is facing difficulties in adjusting to the political factors of each of the one hundred and fifty countries in which they operate. They have to make their strategies in line with the political policies of the countries that they operate in. The biggest challenge in front of the Volkswagen is to understand the different political pressures. For example Chinese government has different policies than the Brazilian.
Economic Factors: automobile industry contributes greatly to the economy of every country. The countries that they venture in helps in putting up of the factories as they are going to benefit economically. The industry is also affected by the fuel prices. To deal with this difficulty Volkswagen can focus on alternatives of diesel and petrol.
Social factor: Volkswagen gives employment to the people in the society. The company is widely accepted because of this.
Technological factors: the industry relays majorly on technology for production of well maintained cars. Volkswagen has advanced technology and is able to make well maintained cars.
Environmental factors: waste from the industry is bond to pollute the environment. Volkswagen should take measures to limit their pollution. Volkswagen needs to invest on R & D department so that it can produce the cars locally and can protect the natural environment of its society (M 2004, pg 158)
Legal factors: different countries have different laws regarding automobile industries. Volkswagen should focus on competition law, consumer protection law, intellectual property law, labor law, emission laws and taxation laws.
Volkswagen also takes into consideration SWOT analysis. They study the countries that they are to set up their business and come up with the best approach to dominate such areas.
Conclusion
Volkswagen is big company and has strategies to acquisition with the market and gives the best to its customers and the countries that they operate in.
It has aim to improve the number of sells per year to over ten million cars.
The goal is to make the company financially strong and to increase the company’s return.
Volkswagen also aims to be the main employer of all the brands.
Bibliography
BHATTAXHARYA, M. (2004). South Asia in the era of globalization: trade industrialization and welfare. New York, Nova Science.
EWING, J. (2015). Volkswagen’s Net Profit Rises 19% Amid Recovery in Western Europe’s Car Market. The New York Times.
