Volkswagen Executive Summary

Arnold Communications undertook extensive market research in order to understand the modern VW buyer and their position in the industry. They set about collecting primary data through extensive interviews, visiting 95 of the top VW dealers and drving VX over 50,000 miles

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:

The company has a strategic goal is to develop as the world’s leading brand in the premium automobile segment. This vision is the core of Audi's 10 year strategy called Strategy 2020 spanning from 2010 to 2020.

C.) Marketing and Sales: In 2011 VW group inclusive of Porsche and other brands ranked number 3 in the world trailing Toyota and GM. However in Europe the VW group leads sales amongst competitors. Porsche relates their increase in marketing and sales to the CRM processes in SAP. All systems are originated in German but the data is also shared North America as well as Canada. North America and Canada represents the biggest market for the car manufacturer

Ultimately, Volkswagen’s case highlight in business unethical conduct will be exposed and corporations shamed would suffer economic and reputational damage as a result. Integrity always starts from top management and is key to any successful businesses. It should be the responsibility of senior leadership to both exemplify the right behaviours and to teach the other employees the ethical standards. These factors are vital to a complete understanding and commitment to an ethical corporate culture. The repercussions of such scandal should instigate an enquiry at the broader cultural realities that drive unethical decisions in business. In particular is the warped yet common perception that the only way of determining success is money. A lot of this has to do with a person’s value being determined by money and too many individuals have no genuine sense of being without the material possessions they hold. This engulfs not only entire organisations, but even entire societies. It would be interesting to see Volkswagen attempt to regain its reputation it once held and the difficulties Volkswagen encounters along the way should serve as a firm reminder not only for other car manufacturers but all businesses worldwide that unethical conduct would not be rewarded.

By 2007, Porsche produced an average of 100,000 vehicles per year earning it the top slot of the most profitable car manufacturers in the world. Its revenue per car stood at $91,974 translating to $10 billion in revenue (Henderson & Reavis, 2005,

In any market there are opportunities to be found. The automotive market is no different. For example, there has been a trend growing in the automotive market, which leans toward renewable energies and those vehicles that will leave less of an impact on their surrounding environment. Green technologies are tied into political agendas and public opinion. Porsche Automotive Group has not missed this less than subtle hint. In keeping with this trend, in the pasted decade Porsche has been developing electric cars (Porsche SE Group, 2016). Another opportunity that exists for Porsche Automotive Group is also one of their weaknesses. It is the fact that they specialize in luxury vehicles for an exclusive class of society. The current

Volkswagen is known as people 's car. Financial aspects and fuel amounts were kept in mind to transport a family of five. Volkswagen still remains the best seller due to its air cooled engine and rounded performance. The core competency was exhibited through these features. It organised itself around its core processes where brand repositioning was a good step.

They should develop new ultra-sensitive sensors that will detect the car’s speed and according adjust the system to reduce the fuel consumption. This will lead to the reduction in the carbon footprints left by the cars manufactured by the company. Volkswagen should also make changes to its existing diesel engine technology .

In recent years, the interest for eco-accommodating cars and electric vehicles has been quickly expanding as environment has turned into a noteworthy sympathy toward numerous administrations and numerous individuals around the globe. As indicated by Rising vitality costs and expanded discharges controls are liable to build the interest for mixture electric vehicles (HEVs), as crossover motors are more fuel proficient and less dirtying than ordinary gas and diesel motors. The essential markets for HEVs will be inside the US, Western Europe, and Japan, in spite of the fact that the quickly developing Chinese business sector is likewise anticipated that would encounter moderately solid interest for these fuel proficient and ecologically agreeable vehicles. Volkswagen is quick to profit by the developing interest for HEVs. The organization has made noteworthy measure of venture for the improvement of half breed vehicles over the years. The organization is dealing with a huge number of new items, with an arrangement running up to 2020; this incorporates fitting spotlight on exchange energizes, cross breeds and electric vehicles. The organization 's accentuation on half and half innovation will empower it to exploit the positive business sector slants in this way boosting incomes and piece of the overall industry (Volkswagen AG , 14 Nov 2014).

BMW’s purpose is to become automobile industry leader. BMW’s strategy is built on their “Strategy Number ONE”, standing for 'New Opportunities ' and 'New Efficiency ', which means capturing the best opportunities and becoming more efficient in order to ensure BMW leading position and achieve long term sustainable growth (BMW, 2011). BMW core values are quality, technology, performance and exclusivity. Therefore, research and development are their most important aspects to offer customers recognizable added value. BMW has spending a far greater percentage of profits on R&D than its competitors (Franzen, 2004). [pic] To achieve all these values, one of BMW’s key strategic corporative standard and behaviors is to builds up and maintains high skill expertise. For example, the launch of E Change LIFE project, in which managers design and organize workshops for all employees engaged in development and change process. The policies and behaviors of the management are focused on long term planning, and encouraged new, positive approaches to marketing. BMW also strives for ecological and social sustainability along the entire value-added chain (BMW, 2011). These keys values are embedded in the heart of every employee in BMW. In BMW, employees respect each other and have high self esteem with strong team spirit. That’s why BMW has become the first of the most attractive employers in Germany according to a research conducted by

BMW is one of the ten largest automobile manufacturers in the world, with an annual production of 1.3 million cars (2009). It is furthermore one of the leading manufacturers in the premium car segment. BMW Group brand portfolio includes in addition to the BMW brand itself the Mini and Rolls Royce motorcars. The Mini brand is a remain from 1994 when BMW bought Rover and Rolls Royce was acquired in 1998 after a few years of engine cooperation. Besides the production of automobiles BMW is a well

Daimler AG is one of the top luxury car makers in the world and one of the best in the luxury cross over segments. Some of the following technical resources give Daimler AG a competitive edge in the market –

Volkswagen does effectively not seem to have the image it used to have: the image of all German car manufacturers. Nevertheless, despite all these problems, the German car manufacturer’s Annual Report 2010 shows the willingness of the brand to keep the customers in the heart of the its decision. Although, Volkswagen says in this report that its competitive advantages are not secured through product quality and appeal alone. The brand reminds the theory following which customers’ loyalty to a specific brand is also influenced by the quality of service they receive. After-sales and customer service in the Volkswagen Group focuses primarily on establishing and maintaining long-term relationships with customers and partners worldwide. Its aim is to captivate customers with their outstanding commitment to good service combined with Volkswagen’s high quality standards. But, as explained before, these standards are not that high.

One potential threat for Volkswagen is that Toyota may respond strategically by also cutting its prices. However, given Toyota’s quality problems over the past year, they will not be able to lower prices, as this possibly would create the perception of lower quality.. First and foremost, Toyota needs to ensure it handles its quality problems to its customers’ satisfaction. The auto maker needs to ensure the public perception is that Toyota is being upfront, honest, and responsible in dealing with recalls and the