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. 

 

2 thoughts on “Volkswagen SWOT Analysis

  1. VW does NOT offer a pickup truck in the US, yet, there is considerable demand and profit margins are high. Also re the US: I look around and most drivers of VWs in the US that I see (a nonscientific sample) are women. I don’t think VW plays to men well.
    Last personal rant: while in the Czech Republic, I fell in love with the Skoda. I would buy one if they were sold here. Why isn’t the Skoka sold in the USA?

  2. They do not offer a pick up truck, but they are in the process of making an SUV which will likely help the situation in America. Men don’t buy VWs too much, but they do buy Audis in the luxury category (only based off of personal observation).

    I’m not sure about Skoda. I had never even heard of it until I started working on VW.

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