Marketing Management Assignment 1 - Course Bachelor of Business Studies(BBS 24 Module Marketing Management(MKT2002S Assignment Title Assignment 1

Marketing Management Assignment 1 - Course Bachelor of...

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Course: Bachelor of Business Studies (BBS) 24 Module: Marketing Management (MKT2002S) Assignment Title: Assignment 1 Submitted by: Cho Yaosong, Johan Student Number: 15207927 Lecturer: Dr Ajit K Prasad & Dr Markus Vanharanta Submission Date: 4 March 2016 Word Count: 1730 1
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Content List 1. Background ...................................................................................................................... 3 2. SWOT Table Highlights .................................................................................................. 3 3. Strengths ............................................................................................................................ 4 5. Weakness ........................................................................................................................... 5 6. Opportunities .................................................................................................................... 5-6 4. Threats .............................................................................................................................. 6-7 5. Conclusion ......................................................................................................................... 7 6. Referencing and Structure Formatting .......................................................................... 8 2
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1. Background Volkswagen Group is a German multinational automotive manufacturing company headquartered in Wolfsburg, Lower Saxony, Germany (Jurevicius, 2013). It was founded in 1937 but only began production in 1945 after being converted from an armament factory following World War II. In 1945, its introductory car, the Beetle became a success story in America (Volkswagen, 2016). Today, Volkswagen owns renowned car brands such as Audi, Bentley, Bugatti, Porsche, Skoda, Lamborghini, MAN, Scania and motorcycle brand Ducati (Barth, 2013). Volkswagen’s perennial top sellers worldwide include the Jetta and Golf models (Forbes, 2016). By May 2015, Volkswagen has 119 production facilities across 31 countries in Europe, America, Asia and Africa and sells its vehicles in 153 countries (Volkswagen, 2015). As of May 2015, it has 592,586 employees producing 41,000 cars worldwide every weekday (Volkswagen, 2014). In the same year it generated a net income of $268.55 billion US dollars and a market capitalization of $126 billion US dollars (Forbes, 2015). Its top competitors are Toyota, General Motors (GM) while the rest include Ford, BMW, Hyundai, Chevrolet, Honda (Spiderbook, 2015). 2. SWOT Table Volkswagen SWOT Analysis Helpful to meeting objectives Harmful to meeting objectives Internal Factors Strengths 1. Strong Global Presence 2. Brand Portfolio is Diversified and Strong 3. Synergy 4. Strong Standing in China Opportunities 1. Consumer Inclination towards “green” vehicles 2. Growth through Acquisitions 3. Increasing Purchasing Power of People 4. Increasing Global Demand for Buses External Factors Weakness 1. Weak Industry Position in the Indian and United States 2. Most cars are not environment friendly and fuel efficient 3. Controversy and Fraud on the Emissions of the Cars Threats 1. Fluctuating Fuel Prices 2. Rising Raw Material Prices 3. Exchange Rates 3
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2.1 Strengths 2.1.1 Strong global presence Having its operations in 153 countries worldwide in 5 continents, Volkswagen became the second largest automaker by output in the world in 2014 with 10.23 million units of car sold and 202.2 billion euros in revenue (Statista, 2014). With such enormous reach to the masses, Volkswagen has been successful in capturing the majority of the market with only Toyota able to compete in terms of global presence (Murphy, 2015). Furthermore, the financial report of Volkswagen in 2015 highlighted the company’s positive growth in car market where its sales revenue increased by 10.3% from the previous year to $52,735 million which increased its overall operating profit by 6.3% (Potsch, 2015). With such robust growth and immense global presence, Volkswagen has surely established itself as a key player in the automobile industry.
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