Volkswagen SWOT Analysis

Since my group has been assigned Volkswagen for the final project, I thought it would be wise to do a SWOT analysis on the company based on the information I have learned this semester. 

Strengths:

1. Global Presence: VW operates in 153 countries worldwide and was the third largest automaker in 2012 (behind Toyota and GM). They are currently the number one automaker in Europe. They are especially strong in China which is the largest automotive market. Volkswagen captures 20% of that market share with its Audi and Volkswagen brands. 

2. Several Brands: Volkswagen owns a very large variety of brands that can satisfy all customer needs:  Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Škoda, Volkswagen, MAN, and Scania. Audi and Porsche are especially valuable ($7 billion and $5 billion respectively). 

Weaknesses:

1. Weak presence in America: America is the second largest automotive market and Volkswagen only accounts for 5% of the market. They need to implement better strategies in order to better break into that market and increase revenues. Without a strong presence in the United States, it will be difficult for Volkswagen to be the number one automaker in the world. 

2. SEAT: The SEAT brand in Spain is the only one of Volkswagen’s 5 main passenger car brands to not make a profit. The company fired the CEO which may or not improve the financial stability of the company, though it is speculated that it won’t help conditions much for 2013. 

Opportunities

1. Growing Green Presence: the world is becoming more and more environmentally conscious and Volkswagen has a large opportunity to start manufacturing and selling fuel efficient cars. They are already making hybrid vehicles and are marketing them fairly well. 

2. Acquisitions: Volkswagen is (for the most part) very successful with the competitors it acquires. They can manage all the brands competently and effectively, so they should most likely continue buying up other brands to spread their market share. 

Threats

1. Emission Standards: VW is a vocal opponent to the new regulations for lower emission standards. If the legislation is passed, the company would need to invest a lot of money to alter their cars to emit less CO2. 

 

Volkswagen donates 190 cars to US

The German automaker has donated 190 2012 Passat models to fire squads around the US in an effort to help the fire companies and rescue squads around the country utilize current-generation vehicles instead of outdated models.

This donation will boost the company’s reputation because it is such a charitable donation. Perhaps more importantly, it will create more exposure for their cars in a market the company is not dominating. This is another example of the company’s consistent effort to continuously grow in the US market.