Volkswagen Case Study.docx - 1 Volkswagen Case Study Analysis As one of the largest automobile companies in the world Volkswagen holds an 11.4 global

Volkswagen Case Study.docx - 1 Volkswagen Case Study...

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1 Volkswagen Case Study Analysis As one of the largest automobile companies in the world, Volkswagen holds an 11.4% global market share in the automobile production industry, as of 2010. As a holding conglomerate the company operates a variety of brands from high end Lamborghini, Bentley and Porsche to the more affordable Audi, Ducati motorcycle and VW station wagons. The company has decided to employ a product leadership value discipline in order to commit to its corporate mission of offering tailor made mobility solutions and further developing their awareness of the diverse needs of their customers (Pratap, 2018). It has been able to fulfill its mission statement due to its novel approach of employing a mass customization model which far exceeds that of its competitors. Volkswagen’s custom order system allows users to completely customize every aspect of a chosen model from VW’s fleet and provides real-time quotes of how much each order will cost. While competitors provide a narrow selection choice that only allows customization of baseline features like color and engine combinations connecting the buyer with the most similar model in the current showroom. Whereas, VW enables their customers to create unique tailor made vehicles based on each users specific preferences. This is possible through their implementation of their online e-commerce platform which acts as an example of channel compression in VW’s value proposition. This online ordering system is an example of channel compression because it eliminates other intermediaries between VW’s customers and the production team at VW who are in charge of making customer vehicles, by eliminating auto traders.
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