1. BackgroundVolkswagen Group is a German multinational automotive manufacturing company headquarteredin Wolfsburg, Lower Saxony, Germany (Jurevicius, 2013). It was founded in 1937 but onlybegan production in 1945 after being converted from an armament factory following World WarII. 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 perennialtop 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 andAfrica 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 dollarsand 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 TableVolkswagen SWOT AnalysisHelpful to meeting objectivesHarmful to meeting objectivesInternal FactorsStrengths1.Strong Global Presence2.Brand Portfolio is Diversified and Strong3.Synergy4.Strong Standing in ChinaOpportunities1.Consumer Inclination towards “green” vehicles2.Growth through Acquisitions3.Increasing Purchasing Power of People4.Increasing Global Demand for BusesExternal FactorsWeakness1.Weak Industry Position in the Indian and United States2.Most cars are not environment friendly and fuel efficient3.Controversy and Fraud on the Emissions of the CarsThreats1.Fluctuating Fuel Prices2.Rising Raw Material Prices3.Exchange Rates3
2.1 Strengths2.1.1 Strong global presenceHaving its operations in 153 countries worldwide in 5 continents, Volkswagen became thesecond largest automaker by output in the world in 2014 with 10.23 million units of car sold and202.2 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 tocompete in terms of global presence (Murphy, 2015). Furthermore, the financial report ofVolkswagen in 2015 highlighted the company’s positive growth in car market where its salesrevenue increased by 10.3% from the previous year to $52,735 million which increased itsoverall operating profit by 6.3% (Potsch, 2015). With such robust growth and immense globalpresence, Volkswagen has surely established itself as a key player in the automobile industry.