Swot and pestle analysis of volkswagon

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Do you remember the vintage car beetle?. Yes we are speaking of Volkswagon. Know the kaleidoscope of events and task force elements that shaped it's marketing future. Also, get a clear insight of the lacking in the organisation and how mosaic of forces determine its future strategy
  • 2. INTRODUCTION TO THE ORGANIZATION • Volkswagen AG or Volkswagen has been entitled as one of the most leading automobile manufacturing organizations in the entire world. The company is originally established in Wolfsburg located in Germany. The company has a huge history of producing different automobiles that has proven to be extremely appreciated in the market as per the provision and the requirement of the customers.
  • 3. BUSINESS ACQUISITION OF VOLKSWAGEN • The company is found to be producing over 10 million vehicles at a stretch and at the same time it has been found to be sharing company at 1-2 place with the Toyota Motor Corporations as well. As per the brand portfolio is concerned, it has reported to have the widest range according to the reviews of the customers as compared to all its competitive organizations in the market. In Europe as well, Volkswagen has been regarded as the leading automobile manufacturing organization where all of the brands of the organizations are based in. Along with that, the company has its largest market in the country of China.
  • 4. THE SWOT FRAMEWORK • Since, every organization has been competing with the success that Volkswagen shares, it also needs to be found out how the organization operates as a whole to add to the success that it has been enjoying. SWOT analysis is thus developed as a proper framework in the management studies that is considered to identify and analyse the effects of an organization depending on the external factors of the organization as well as the internal factors of the organization. As put forward as an assessment framework by Albert Humphrey, the process helps in the strategic planning exercise of an organization. • SWOT Analysis would generate all the information about the organization and the probable effect that the operations of the organization would have for making a project viable and at the same time analysing the impact or products, person or places to an organization. The business entities are found to be using the SWOT analysis for assuring the use of the personal assessments of a business.
  • 5. SWOT ANALYSIS OF VOLKSWAGEN Strength Weakness • Widest range of portfolio as per its competition. • Diversification in the company • Huge market in China • Negative publicity • Highest rate for recall • Low market share in the automotive market • Battery driven vehicles are not an area of expertise Opportunities Threats • Expected rise in fuel prices • Acquisitions • Rise in the demand for autonomous vehicles • Increase in the Euro rates • Sustainability policies • Huge competition in the car manufacturing market • Pending damages to pay • Regulation of the government about automotive cars
  • 6. PESTEL ANALYSIS FRAMEWORK • Since Volkswagen is regarded as one of the global brands leading in Automotive manufacturing it has a large product portfolio and the automotive industry has a fierce competition going on for gaining the Marketplace over one another. There has been a new change in the market as well regarding the legal regulation that has increased one after another. Although Volkswagen has accepted all the challenges and still has made sure that a fluctuating business in the economic advancement sustains.
  • 7. WHY PESTEL IS NEEDED FOR VOLKSWAGEN • Volkswagen stated that they would continue to perform well like they are doing right now as the important strengths like the brand image and a financial strong position is still their forte. However they still have to pay use amount of fine because they have been charged with non-compliance of the legal activities and regulations. Therefore from the above discussion it is clear that there are mostly to two business that include the Volkswagen organisation, which are Automotive and Finance. Therefore the PESTEL analysis for Volkswagen needs to be done to identify the forces in the business environment that has been affecting business of the organisation. The PESTEL analysis is actually an acronym for the political, economic, social, technological, environmental and legal factors that forces is the effect on a business directly or indirectly.
  • 8. PESTEL ANALYSIS OF VOLKSWAGEN • Political: The political changes like breaks it has effect the organisation in creating such a situation that the international brands would provide rise to various difficulties for the larger and Global Business brands • Economic: Economic factors of a direct effect and for Volkswagen when the organisation decline the economic activity and demand for vehicles it also affected the sales and revenues of the brand. • Social: Social cultural forces affect the organisation in such a way that people are more interested in the sustainable products right now where automotive cars are involved.
  • 9. PESTEL ANALYSIS OF VOLKSWAGEN (CONTINUED) • Technological: Technology has affected the organisation a lot since Volkswagen mostly deals with automotive cars for the manufacturing of the automobiles. • Environmental: Environmental factors are also important for the automotive industry as Volkswagen was forced to recall millions of cars since it did not meet the standard for emission in 2015. • Legal: Legal factor like the diesel scandal case has affected Volkswagen models as well and they had to pay fines in billions.
  • 10. THANK YOU
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