As the largest automobile manufacturer in Europe and 5th in the whole world, the Volkswagen Group focuses on the automotive market and offers products and services along with an entire automotive value chain. With nine independent brands, the Group provides a unique range of models from the extremely efficient 3-litre car to the great sporting tradition of Bentley. Indeed, the group follows a multi-brand policy.
While each of the brands has a distinct identity, it also benefits from the brand name of the Volkswagen Group with its global manufacturing base of 45 plants worldwide, and its international sales and marketing strength. As a global player, Volkswagen has presence in all significant markets across the world. In terms of market share in Western Europe, almost one car out of five comes from the Volkswagen Group.
The Volkswagen Group is also becoming a mobility provider, and its broad spectrum of services includes financing and leasing business through its Financial Services Division. It also runs one of the leading information technology consultancy in Germany.
Although the entry of new players in the market is less, there is a fierce competition in the sector. Huge investment in technology and R&D activities, efficient human resource strategy, long-lasting partnerships with suppliers and extensive environmental management are the challenges of most competitors in the market.
The Volkswagen Group thus chose to expand their foot print in every segment of the market. As the group possesses a global manufacturing base, this strategy enables them to benefit from economy of scales. Yet this policy is very risky. Though the group takes maximum effort to give each car a distinct identity and position, the different brands may become competitors.
History:
The "Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH" was founded on 28 May 1937, and is renamed "Volkswagenwerk GmbH" on 16 September 1938. This firm was affected by the Second World War. After the end of the Second World War, responsibility for what remained of the Volkswagen Company and its facilities were transferred to the British Military Government in mid-June 1945. Within two years, the Dutch importer Pon's Automobile handled the first commercial export of Volkswagen. Founded in June 1949, "Volkswagen-Finanzierungs-Gesellschaft mbH" as aimed at expanding sales in the domestic market.
Series production of the Type 2 started in 1950 and it extended the product range. The Volkswagen Transporter or Volkswagen Bus enjoys a fast growing popularity, thanks to its multifunctionality. The first step in the process of internationalizing the company's operations is taken on 11 September 1952 with the establishment of "Volkswagen Canada Ltd." in Toronto.
After the successful sales of Volkswagen in the US market, the company founded "Volkswagen of America, Inc" in 1955. In order to make sure a strong hold on the South African market, Volkswagenwerk GmbH acquired a minority stake in the general importer "South African Motor Assemblers and Distributors Ltd." (SAMAD) on 8 June 1956. SAMAD renamed as "Volkswagen of South Africa (Pty) Ltd." in January 1966.
By acquiring Selbstfahrer-Union, the largest car rental agency in Germany, the Volkswagen Group reinforces its commitment to an upcoming business in March 1970. The subsidiary, renamed "interRent Autovermietung GmbH", was merged in 1988 with Europcar to form "Europcar International S.A.".
[...] II Quality management: an inside component of VW value chain According to Bernd Pischetsrieder, chairman of the Board of Management of Volkswagen AG Group Quality, “quality is not only a measure of how good a product or service is, it is an umbrella term covering the striving for certainty, orientation and reliability. It demands concepts to match the products and services to the needs and expectations of customers”. Offering customers outstanding quality in order to ensure their long-term loyalty to the brands of the Volkswagen Group is not only achieved by focusing solely on the quality of the products. [...]
[...] The Volkswagen Group started a number of companies in East Germany from December 1990, including "Volkswagen Sachsen GmbH" with its new Mosel plant. VOLKSWAGEN AG received the approval by Czech government for the takeover of the venerable "SKODA, automobilova a.s". The Brand recognition of SKODA promised Volkswagen an easy entry to the car markets of Eastern- central and Eastern Europe. To optimize its organizational structures, VOLKSWAGEN AG merged its financial services in 1991 under the umbrella of "Volkswagen Finanz GmbH", which transformed to a stock company on 1 January 1994. [...]
[...] But the trend was not the same for companies like VW Group General Motors and Fiat New Entrants The European and American automotive market is definitely a ‘matured' one, which means that each firm has already developed a network of factories and their own distribution system. In order to make their presence in these markets, new entrants must be able to establish a distribution channel and a strong marketing strategy that can attract customers towards their product. (For instance, if the new entrant is a foreign company, they don't have to set up a new factory.) 4 Suppliers Generally, car manufacturers buy parts for their cars from third party suppliers. [...]
[...] In 1969, the group NSU and Auto Union merged in Audi NSU Auto Union, of which Volkswagen owns of the capital. o Seat: Seat was founded in 1950 under the name of the Sociedad Espanola de Automoviles de Turismo. This Spanish firm made an agreement with Fiat and produced under license. In 1981, it became a state owned company. In 1986, Volkswagen bought 75% of the capital of the Spanish company. o Skoda: At the beginning of the century, Skoda was rather specialised in the production of raw materials. [...]
[...] Political factors Politics generally play a major role in the industry, especially during recession. Policies can be aimed at developing the national automobile industry, or some brands specifically, as it has been the case for GM in the United States, or at strengthening entry barriers in order to protect the market from foreign competitors (for example, Europe launched a policy to set up quotas to limit the number of Nippon cars in the market during the beginning of the 20th century). [...]
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