SWOT Analysis - Volkswagen

Extract

[...] In North America, it was 17%. It is only the rest of the world combined that resulted to 42% of the company's sales. So, even geographically speaking, the brand remains the best. -Cooperation and synergy: all the 12 brands under Volkswagen share information and that makes the company very strong. In fact, the company, through each of its brand, gain competitive advantage. Volkswagen brands share their R&D developments, technology used, etc. Even if the synergy cannot be applied to all the company's brand, a good number like Bugatti, Lamborghini, SEAT and Porsche have that synergy between them. [...]

[...] In fact, coming up with electric cars and hybrid cars for example has enabled the brand to satisfy the needs and expectations of its clientele. With electric cars, the brand is also fighting the global warming in a certain way. So, Volkswagen gains a competitive advantage over its competitors. -Production network: the brand has more than 120 locations of production in the world. This presence helps the company to easily serve the clients, instead of shipping its products from one country (continent) to another. Most of its locations are found in Europe. [...]

[...] So, Volkswagen should focus on this market in order to increase its value. Despite the fact that Volkswagen is the number one automotive company in the world, it hardly sells vehicles in the USA market, which means having less than of the market share. This is a weakness that the brand must remove in order the increase its market share, number of sales and revenue. -Lack of diversification: although the brand has an impressive portfolio of products, it should adapt to the trend according to the generation. [...]

[...] In fact, millions of vehicles were recalled, and this does not help the company in any way. This is considered as the worst weakness that the brand has ever faced. That same year, the brand lost billions due to the decline of sales, lost some potential customers, etc. In the USA market, Volkswagen has highest recall rate. In fact, the brand recalls 1805 vehicles out of 1000 produced. This means that each vehicle produced by Volkswagen is almost recalled twice. [...]

[...] In fact, the right move to make is to switch to the electric cars first, the self-driving cars in the second position and finally the flying cars. If the brand has to remain competitive in the long run, those are the 3 key elements. Anyways, in order to make this real, the brand must show some leadership and management skills. In fact, when making this move, the company should remain active in the traditional sector. If this works, the brand will become stronger and greater. If reverse is the case, Volkswagen might just remain in the past and absent in the future. [...]