Volkswagen SWOT Analysis 2022 – Volkswagen Group

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Volkswagen SWOT Analysis analyzes, Volkswagen is known for its wide brand portfolio, manufacturing capabilities, and sales numbers. It is the biggest car manufacturer in Europe and the second biggest worldwide. Volkswagen also invests heavily in research and development. SWOT Analysis Of Volkswagen can teach us a lot about Volkswagen company. 

Did you know? Did you know that more than 21.5 million original Volkswagen Beetles were sold since 1945, making it one of the top-selling vehicles in the twenty-first century.

Whatever the industry or kind of company, any business that is able to stay within the top ten of the list for over a century ought to be given the recognition it is due. Volkswagen is nearing 100 years within the highest tier of the automobile industry. Volkswagen is known for strategic acquisitions, and the company has acquired brands like Audi, Bentley, Porsche, and others. Volkswagen is one of the leading manufacturers of cars and in this article, we have analyzed the business performance of Volkswagen. 

This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Volkswagen.

Volkswagen At A Glance – Volkswagen SWOT Analysis

Company: Volkswagen Group
Founders: German Labor Front
Year of establishment: 28 May 1937, Berlin, Germany
CEO: Herbert Diess
Headquarters: Wolfsburg, Germany
Employees (Dec 2020): 665,000
Ticker Symbol: VWAGY
Type: Public
Annual Revenue (Dec 2020): EURO€$254.6B
Profit net income (Dec 2020): EURO€9.7 billion

Products & Services: Passenger Vehicles | Commercial Vehicles | Motorcycles | Engines| Propulsion Components | Turbomachinery | Banking | Financing | Fleet Management | Insurance | Leasing

Company Website: www.vw.com

Volkswagen Competitors 

Competitors: Toyota | General Motors | Chevrolet | Daimler | Hyundai | Renault Nissan | Ford | Fiat Chrysler Automobiles | Zorya | Koenigsegg | Tesla | Mercedes Benz

Volkswagen SWOT Analysis

SWOT Analysis Of Volkswagen analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Volkswagen SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Volkswagen SWOT Analysis. Below Is The Detailed SWOT Analysis Of Volkswagen.

Volkswagen Strengths – Volkswagen SWOT Analysis

1. Excellent Brand Recognition: Being one of the longest-running automobile manufacturers, Volkswagen has a strong reputation worldwide. One reason is that the simple, but famous interspersed Volkswagen logo is recognized as the most distinctive from a line of people around the globe.

2. Strong Financial Performance: With great financial capabilities comes flexibility and the capability to accomplish whatever a business has to do to stay ahead of the opposition.

  Based on Forbes according to Forbes, as of May 2020 Volkswagen is ranked in the following level in the world:

     – The number 8 spot in terms of sales revenues.

     – #37 in terms of profitability.

     – In terms of asset value, #70.

     – #133, in terms of market value.

3. World’s Best Employer: In the report by Forbes, Volkswagen is ranked in the  31st place on the world’s top employers list for 2019.

4. Impressive Portfolio: From Lamborghini from Lamborghini to Bugatti, Bentley, Audi, Skoda, and Porsche All of these iconic cars are part of Volkswagen’s collection. Apart from the high-end sports vehicles and luxury brands, Volkswagen also provides services to everyday people. Volkswagen offers something for all.

5. Diversified Brands: It is a Volkswagen group is extremely diversifying with two main divisions that include The Automotive division and the Financial Services Division.

6. Vehicle Sales: Despite the fierce competition, Volkswagen sold 10.9 million automobiles in 2019 and generated a revenue that was Euro252.63 billion.

7. Brand Value: According to Interbrand report, the value of the brand that Volkswagen has Volkswagen group was $12.9 billion in 2019.

8. Strong Global Production Network: Volkswagen group has an overall 124 production sites around the world. The majority of the production sites (72) located in Europe. From Europe from Europe to America, Asia, and Africa It has a significant market share in both the developed and emerging economies.

9. Strategy Restructuring, Strategic Restructuring as well as Rebound strategy : After seeing its stock plummet dramatically following an emissions-related scandal involving diesel in the year 2015 the company changed its structure and re-emerged after just two years. The CEO at the time, Mattias Muller, conceived the Volkswagen transformational plan ” Transform 2025″ through these phases  The initial phase (2016 to 2020): Develop new skills – electric vehicles and electric mobility. – Phase 2 (2020 2025): Become world’s most profitable, profit-making volume manufacturer. – Third phase (2025 to 2025): the rapid growth of electric vehicles Source
10.  Huge Investments in R&D: The industrial cloud through electric and hybrid cars motorbikes, efficient combustion engines and many other technologies, Volkswagen invests heavily in R&D. This has allowed the auto manufacturer to offer quality and top performance cars continuously and keep the technology advantage over competitors.
11. Effective Management of Operations: While other businesses are struggling to manage their suppliers raw materials and sales, the capacity-demand ratios as well as other factors, Volkswagen is producing over thirty thousand cars per day. A well-run management system makes this appear so simple.
12. Great Partnerships: Volkswagen’s partners are trustworthy and have a reputation for being leaders in their specific fields, which has led to the success of the company. When it comes to technology, Volkswagen has partnered with numerous top technology companies including Microsoft, Siemens, Amazon (AWS) and many more.to increase its services for e-mobility.13. Closely-knit Teams: Manufacturing facilities that function and live together as a family are extremely efficient. Volkswagen’s factories are designed to be small towns that have welders, technicians, supervisors design, team leaders and support personnel all living in a community.

Volkswagen‘s Weaknesses – Volkswagen SWOT Analysis

1. Emission Scandal – Tainted Reputation: In September of 2015 Volkswagen’s standing to be one of the top reliable automakers was damaged by the news that it had put in software in its vehicles to cheat on emissions tests. In the wake of this scandal involving diesel emission, Volkswagen was penalized to pay more than EUR 30 billion in fines across several countries. The company has been struggling to win back the confidence of the customers.

2. Lack of Diversification: Although it boasts an impressive portfolio of products, the company is concentrated on making cars that are available for sale. Millennials as well as Gen Z are the present and the future, however they are more inclined to rideshare or car sharing, as well as rental cars. This makes Volkswagen’s lack diversity a major problem. Generation Y aren’t as enthusiastic about purchasing automobiles as the baby boomers were.

3. Weak Marketing Strategies outside Europe: Volkswagen isn’t able to advertise or market its brands sufficiently outside of Europe. In many instances, it will partner with a company already present in the market. For instance, it is working with JAC to develop low-cost electric vehicles that are being manufactured in China.

Volkswagen‘s Opportunities – Volkswagen SWOT Analysis

1. Diversify Portfolio: As the millennial generation continues to are entering the market with their smartphones, the need for simple inexpensive, affordable, and flexible mobility will grow. With Volkswagen producing great automobiles, all you have to accomplish is develop an application to share cars, rideshare, or rental cars and it will draw millennials in a horde.

2. Focus on Eco-friendly Cars: The number of environmentally conscious consumers is rising rapidly all over the globe. Volkswagen is able to invest more money in the production of electric vehicles and hybrids to meet the increasing demand. In the coming five years, Volkswagen has allocated EUR60 billion to expand its electric vehicles. Volkswagen Group estimates in 2025 20percent (about 2.5 millions) of their vehicles would be BEVs. (BEV). Comparatively, in 2019 BEV’s share is around 11% of all deliveries of group vehicles. Examples of the electric vehicles include e-Tron, Taycan, e-Bora, E-Lavida and many more.

3. Expand in Emerging Markets: The market for automobiles in developed nations is overcrowded, with only a few gain to be gained. It’s time to capitalize on the increasing purchasing power of the middle class across Asia, Africa, the Middle East, and Latin America.

4. Tap into Autonomous Market: The demand for self-driving vehicles is likely to rise dramatically in the coming years as technology like 5G, AI, and IoT provide smarter cities and transportation networks. Google, Tesla along with Uber have already surpassed them of the curve, however Volkswagen is able to get ahead by investing more into autonomous R&D. To further advance its efforts, Volkswagen has partnered with Ford to incorporate ARGO AI’s self-driving capabilities.

Volkswagen‘s Threats – Volkswagen SWOT Analysis

1. Ongoing Lawsuits: Volkswagen is involved in emissions litigation in a variety of courts across the EU as well as in the UK, France, and the US. Each loss is estimated to cost millions, the profits of Volkswagen are under threat due to imminent court decisions.

2. Increasing Competition: The auto industry is extremely competitive, with carmakers such as Tesla, Zorya and Koenigsegg, capturing markets share from Volkswagen’s electric and premium sports cars. They are also fighting off traditional rivals like Toyota, Ford, Hyundai and Nissan. Additionally, there is an increase in competition from ridesharing firms like Uber, Lyft, Ola, Didi and many more.

3. Stringent Environment Regulations: As the threat of climate change increases and governments are increasingly focusing on reducing carbon footprint through strict environmental laws. Similar to a criminal conviction Volkswagen’s emissions and its operations will be scrutinized with greater vigor by auditors of compliance.

4. Trade Negotiations: The US is currently negotiating trade negotiations in the EU. Since the US is the largest exporter from the EU, Volkswagen and other European cars are caught within the negotiations in the form of bargaining chips. A loss of as much as $2.5 billion each year are predicted as the most likely scenario.

5. Global Recession: With the impending recession as a result of the uncertain economic climate, Volkswagen’s automobile sales are under threat. The recession has slashed revenue to fall by to 8% from year to year for the quarter that began in January of.

6. Controversial Advertisement: Volkswagen was accused of posting a racist advertisement in their Instagram channel. Afterward, the ad was removed and Volkswagen apologized in a separate announcement.

Volkswagen SWOT Analysis Template

Volkaswagen SWOT Analysis

VolksWagen SWOT Analysis 2

 

This is the SWOT report that Volkswagen has done. Please let us know if you have additional suggestions to add.


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