Volkswagen, globalisation, Covid-19, competitiveness
The 21st century saw unprecedented financial, economic, political and sanitary crisis. The environment of globalization was affected by these challenges. So, concerns about reversed globalization or de-globalization appeared.
The following analysis demonstrates that Globalization is not reaching a dead end but that it is a dynamic process, reshaping itself constantly. It resists to Covid-19 crisis thanks to firms' capabilities to adapt their global value chain and to the critical support of governments. It accelerates with digitalisation and innovations, both on the demand and the offer sides. One thing must be recognized is that rules of the globalization's game are changing. The world may become bipolar (US & China) but this situation threatens only historical players who are not able to reinvent their politics or business models and not the globalization as a whole system.
Even though states are tempted by protectionism, trading consensus and research for new markets mitigate emergence of these national interests. In addition, international corporations between emergent countries and developed countries by sharing value and wealth creation constitute a plausible scenario. This alternative was enhanced by bilateral commercial agreements like the 2020's one between the US and China. In these ways, sustainable globalisation may emerge from the Covid-19 especially that global risks (like a global pandemic) need to coordinate and multilateral responses.
[...] Potential Depolarisation of the World May Change Rules of Globalisation China as a powerful country and a serious competitor of the US caused concerns about bipolarisation of the world (Tokic, 2020). This situation is more a threat to incumbent players than for globalization as it changes the rules of the game: globalization is not only US-led by highly also involves emerging countries which are not only positioned on low-end products (Biotechnology, new technologies Efficient defensive mechanisms for western firms can be innovation and ‘China plus one' strategy which enhance globalization (Symington, 2013). [...]
[...] Crisis could call time on globalization predicts Prime Partners. Professional Wealth Management ▪ Julia Anderson, Enrico Bergamini, Sybrand Brekelmans, Aliénor Cameron, Zsolt Darvas, Marta Domínguez Jíménez and Catarina Midões, August 2020, The fiscal response to the economic fallout from the coronavirus, https://www.bruegel.org/publications/datasets/covid-national-dataset/ ▪ Sunil Gupta (2018), Driving digital strategy, a guide to reimagine your business, Harvard Business school press review, pp. 88-122. ▪ Julia Anderson, Enrico Bergamini, Sybrand Brekelmans, Aliénor Cameron, Zsolt Darvas, Marta Domínguez Jíménez, Catarina Midões, August 2020, The fiscal response to the economic fallout from the coronavirus, https://www.bruegel.org/publications/datasets/covid- national-dataset/ ▪ Reuters Reuters, https://www.latribune.fr/economie/international/les-etats-unis- maintiennent-leurs-taxes-sur-l-aeronautique-a-15-854810.html ▪ Volkswagen AG website https://www.volkswagenag.com/en/group.html and VW Half-yearly financial report ▪ Moniruzzaman Kiron Advantages and Weaknesses of the Volkswagen Group (VW). [...]
[...] With this development of its strategy, VW should be aware of the criticality of contracting safeguards to avoid risks of foreign implementations (contractual responsibilities, environmental risks, employment law ) Have Local Strategic Partners and Contribute to the Sustainable Globalisation In the new globalisation, actors must deal with potential trade barriers and challenge them. VW should have an active lobbying policy. For now, VW is a strategic actor in Western Europe and but not abroad. For example, weak relationships with the Trump administration did not help to restrain emission scandal (losses of €16,2 billion (Kiron, 2018). In fact, the Dieselgate involved 6 other actors but VW was the more targeted by the US. [...]
[...] In these ways, sustainable globalisation may emerge from the Covid-19 especially that global risks (like a global pandemic) need to coordinate and multilateral responses. Case study: Volkswagen should benefit from new trends of globalization Although this firm was one of the biggest looser of the Covid-19 crisis, it can reverse the situation by adopting our recommendations: ▪ VW's strategy should be more consumer centric and not only quality driven because new globalization is characterized by fast-changing demands. It should be aware of the latest customers' preferences (as features) and create affordable cars for low-cost markets. [...]
[...] From corporationism to cooperationism: reversed globalization, cooperative politics and expanding online communication in post-pandemic time. Society Register, 161–168. https://doi.org/ 10.14746 /sr ▪ Matt Craven, Mihir Mysore, Mihir Mysore and Matt Wilson (2020), COVID-19 and the great reset: Briefing note September Executiv Briefing McKinsey. https://www.mckinsey.com/business- functions/risk/our-insights/covid-19-implications-for-business ▪ Schmitt, C. & Baldegger, R. (2020). Editorial: Digitalization and Internationalization. Technology Innovation Management Review, 3–4. https://doi.org/ 10.22215 /timreview/1342 ▪ YURI BENDER. (2020). [...]
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