Volkswagen

PRESENTED BY:
HENNA KHAN
3012
RIA KANHERE
3011
SHRADDHA PARTE
3015
DIVYA DINAKARAN
3002
NEHA MISHRA

OUTLINE
SR.
NO.

TOPIC

INTRODUCTION

COMPETITIORS

VW BRAND POSITIONING AND USP

FIRM VALUE CHAIN- PORTER MODEL

POSSIBILITIES OF IT INFLUENCING VALUE CHAIN

PORTERS COMPETITIVE FORCES MODEL

PORTERS FIVE FORCES ANALYSIS

SWOT ANALYSIS

OUR IDEAS AND MARKET FORCE INFLUENCE

10

REFERENCES

INTRODUCTION

Volkswagen group is an automotive conglomerate consisting of

several brands of vehicle for a range of cars for different
customers demographic of age groups and price. Established in
the 1930s, it has become one of the top automotive
manufacturers in the world and is the top automotive
manufacturer in Europe.
Volkswagen translates to Peoples Automobile in German.
The products it manufactures is Cars, Trucks, and Buses.
The companys overall production output is 9,727,848 units.
They have their Manufacturing plants in Germany, Mexico, U.S. ,
Slovakia, China, Indonesia, India, Russia.
Volkswagen is a German Car Manufacturer. It was founded on 4th
January 1937, by the German Labour Front. Its
Headquartered in Wolfsburg, Germany.
It is an Automotive Industry. The areas it serves is worldwide.

From the Beetle model to the Golf Model, Volkswagen's vehicles

were iconic and were the spear header for car innovations that
continue to do so until this day. Their risk taking effort was well
documented and their passion for building cars for people has
made them a proactive manufacturer that strives to protect the
environment and sustainable community.

COMPETITORS

VW BRAND POSITIONING AND USP

Positioning
Volkswagen has the strategy that caters to all types of consumers
like different age groups, price, and needs.
Unlike other manufacturers, who come up with one or two models
that try to attract the masses; vw has its own matrix that divides
its target audiences into groups:
Group 1: The young and single, working professionals aged between
18-25 years
Group 2:The people who perceive that these cars/ vehicles can
differentiate their status, and have technical requirement like LED
headlights, Bluetooth enabling system.
Group 3: Consumers who live for speed and like to have great run
engine like V6/V8 with high horsepower capacity.
Group 4: Keeping in mind Married couples with children, and families
they focus on safety features, space, and Rear end monitoring
system.

Group 5: The goods transporter who need foldable seats and large
storage system.
Group 6: The Retired people who want simple and easy designs,
compared to the speed and futuristic designs.

USP

The unique selling proposition of VW is that its products are more

fuel efficient and environment friendly i.e. It burns less fuel.
Blue Motion is a technology used by VW that reduces the size of
the engine that runs on petrol or diesel.
VW is the company which is renowned for its high quality finishing,
Durability, Comfort. Its quality in production ensures safety and
endurance.

FIRM VALUE CHAIN- PORTER MODEL

Firm Infrastructure: Generalized structure,
accounting, finance, strategic planning
Human Resources: Talent Acquisition, Training, Employee
M
AR
Engagement
G
Technology Development: R&D, process improvement, Installation IN
of new machines
Procurement: Purchasing of raw materials, machines, labour etc.
Inbound
Logistics:
(raw
materials
handling
and
warehousin
g)
Iron,
Aluminium,
Glass,
Petroleum,
Plastics,
Rubber&
Special
fibres,
Human

Operations
(machining,
assembling,
testing
products)
Computerised
machinery
systems for
Manufacturin
g Processing,
Generating,
Assembling,
Refining,
Mining &
Extracting.

Outbound
Logistics:
(warehousing
, and
distribution of
finished
products)
Automobiles,
Commercial
Vehicles,
Engines ,
Motorcycles,
Turbo
Machinery
shipped using
Automated
Shipment
scheduling

Marketing
and sales:
(Advertising
, promotion)
Marketing
strategies
likes
Digital, BTL
along with
ATL media,
Social
media
platforms &
Events

Service:
(Installation , repair parts,
Equipment maintenance
system)
Unmatched
Vehicle Warranty, Wide
Service Network,
Unmatched Roadside
Assistance,
I
Free Inspection
G
Service,
AR
M
Mobile app,
N
Unmatched
Customer
Support

POSSIBILITIES OF IT INFLUENCING VALUE

CHAIN

Volkswagen aims to boost car production worldwide by embarking

on an IT strategy that will give its IT staff a greater say in how its
enterprise resource planning systems should be run and used by
the business.
They currently use SAP, and are planning to improve the quality
and speed of information sharing between manufacturing and
management departments. The IT function also has a say in how
staff who operate the ERP systems should be organised.
Volkswagens strategy will allow it to design new ERP systems and
integrate them with business processes much more quickly, giving
it an edge over its competitors.
The pressure to reduce production costs and complexity by
increasing the efficiency of IT applications is a key driver for IT
function being able to influence business processes.
The IT function would become a "co-designer" of the business
processes. Steering committees, consisting of both business and
IT representatives, would be formed to take joint responsibility for
IT budgets.

When developing innovative applications, IT must lead the way

and tell business units they are going to have to change the way
they work, and the way that the division is organised.

PORTERS COMPETITIVE FORCES MODEL

SUBSTITUTE
PRODUCTS
AND
SERVICES

NEW MARKET
ENTRANTS

THE
INDUSTRY
THE FIRM
GOVT.
(6TH
FORCE)

SUPPLIERS

TRADITION
AL
INDUSTRY
COMPETITI
ON

CUSTOMERS

PORTERS FIVE FORCES ANALYSIS

1. Barriers to Entry: HIGH
Not surprisingly, theautomobile industry has large
barrierspreventing new firms from entering. Aside from
insurmountable start-up costs, automakers must set-up dealer
networks, acquire licensing, and establish trust in the brand (as
cars are usually large purchases for consumers). New competitors
often come in the form of subsidiaries of current competitors.
2. Power of Suppliers: LOW
Suppliers specialize. They produce parts for only one or two
automakers at once, and are heavily reliant on these automakers.
It would be devastating for a supplier to lose an automaker
contract.
3. Power of Consumers: LOW-MEDIUM
Despite Volkswagens large collection of marques, there is an
abundance of brand substitutes. However, consumers rarely
purchase large quantities ofcars; large firms/government agencies
have slightly morepower asthey purchase vehiclesin bulk.

4. Availability of Substitutes: MEDIUM

As a result of increasing rising gas prices and government initiatives
to promote environmentally friendly transportation, more
consumers are opting to take public transit/walk/cycle.
5. Rivalry: HIGH
The US automobile industry can be regarded as anoligopoly.
However, with the recent insurgence of Japanese automakers
manufacturing domestically, andthe revival of The Big Three i.e.
GM, Chrysler & Ford rivalryis as fierce as ever.
Conclusion:
Based on this analysis, one can conclude that Volkswagens position
in the automobile industry is relatively safe. As long as they keep
up withcompetitors in innovation, it is possible for the Volkswagen
groupto hold a considerablemarket share.

SWOT ANALYSIS
Strength(Internal Strategic Analysis)
Strong Brand Image
Presence all over the world
Strong R&D
Presence in thelargest market in
Awesome performing Brands
The number of employees
Weakness (Internal Strategic Analysis)
Weak position in Indian Market
Weak position in theUnited States
Most of their cars are not environment-friendly
Not a strong brand like Toyota

Opportunities (External Strategic Analysis)

Changing technology
Emerging Indian Market
Market United States
Decreasing Fuel Price
Rooms for Social Responsibility
Getting stronger through acquisition
Increasing demand of buses all over the world
Threats (External Strategic Analysis)
Carbon dioxide emission standards
Decreasing fuel price
Raw material price in the increasing
Other Stronger Brands
Conclusion
If we draw a brief picture of SWOT analysis of Volkswagen, we will see
that if some steps to grab developing countries market share are
taken, and if they make environment-friendly cars, they will be able
to build the strongest brand of all.

OUR IDEAS

Wi-Fi support
Solar operated batteries

MARKET FORCE INFLUENCE

We think that despite disruptive innovation, the business will

remain attractive even in the long run as it has a brand name
which has gained trust of the customers over the years.
The technology used is high class and the best machinery &
equipments are used for making the finished products.

REFERENCES

http://www.volkswagen.co.in/en/value_adds/volkswagen-service-be
nefits.html
https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/manufactur
ing_equipment.
htm
http://www.marketing91.com/marketing-mix-volkswagen/