Business Level Strategies For Volkswagen Group

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V. Business Level Strategies
A. Identification of Current Business Level Strategy
1. Qualitative and/or quantitative evidence (e.g. mission statements, press releases, articles, financial data) The Volkswagen Group follows a cost leadership and differentiation strategy. The Volkswagen Group achieves low cost leadership by sharing automotive parts amongst its products and as well as sharing vehicle platforms amongst the other 12 brands under the Volkswagen Group, such as Audi, Bentley, Porsche and Volkswagen Passenger Cars. The Group improves product differentiation by focusing on the product quality improvement, innovation and sustainability. This differentiation strategy helps ensure that the customers are satisfied with the products, and that the customers will be willing to pay a premium for the product. The Volkswagen Groups’ mission statement is not made public but the closest statement that could be called VW Group’s mission statement is expressed as their company’s goal, which is, “The VW Group’s goal is to offer attractive, safe and environmentally sound vehicles which can compete in an increasingly tough market and set world standards in their respective class.”1 Volkswagen wants to become a global and environmental leader in the automotive world and has developed the “Strategy 2018”. The “Strategy 2018” is stated in their latest annual report in the goals and strategies section as follows: Our Strategy 2018 focuses on positioning the Volkswagen Group as a

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