Swot Analysis : Volkswagen Group

956 WordsSep 29, 20174 Pages
Strategically managing a company involves a lot of analytical tool to understand the company’s past, present, and future situations both internally and externally. One among those tools being used is the SWOT analysis. On the whole, the SWOT analysis, being the strengths, weaknesses, opportunities, and threats, is a helpful tool that can be handy to gage the overall situation of a company. This essay will complete a SWOT analysis on Volkswagen Group, one among the leading car manufacturers in the world to demonstrate its applications. Furthermore, an evaluation of whether the internal or the external factors of an organization are stronger will be made. Finally, a determination of the most important ideas of the SWOT analysis to the…show more content…
With the introduction to autonomous vehicles, a trend nowadays, Volkswagen’s market looks very fruitful (CB Insights, 2016). With the European Union’s recent recession, the exchange rate for the Euro is weakening which is a plus for Volkswagen because in comparison to the US dollar, the price of its cars is expected to drop leading to an increase in demand (Volkswagen Group1, 2016). Moreover, with the recent emission problems, Volkswagen is adopting new sustainable programs to get back on track. Finally, the threats that Volkswagen is facing are quite substantial. Competitions for the company is intense. With Tesla’s electric vehicles and Google’s self-driving cars, the need for further diversification for Volkswagen is imminent. It is also undergoing further lawsuits and fines due to the forged emission system from other countries as well (Our Windsor, 2016). Due to this unethical approach, government restrictions on them are getting harsher. Forces affecting a business varies and some can be more challenging to undertake than others. Somehow whether it is internally being strengths and weaknesses or externally being opportunities and weaknesses, I think both have their respective strength. Internally, the strengths of the forces are within the boundaries of the business and can be controlled if effectively analyzed and determined. Without
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