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Volkswagen (Weaknesses (Sold less than 850K vehicles in U.S. which…
Volkswagen
Weaknesses
- Sold less than 850K vehicles in U.S. which captured a less than 5% of market share
- VW has the hightest recall rate in the U.S. market; results in additional costs, disappointed customers and negative publicity
- VW has disregarded the demand for electronic cars and will now have to invest billions to barely compete with other electric cars' automakers
- VW's reputation has been severly damaged by its emissions scandal which makes the company no longer trusted as an eco-friendly business
- Negative publicity because of scandals have hit VW Group hard
Opportunities
- With the expected increase in fuel prices, VW focuses on creating smaller vehicles where the demand will be higher; pushing forward for the 1st competitive electronic car
- Autonomous vehicles are the "next big thing", but no big companies are selling them to the public; VW shouls introduce their's earlier to gain higher market share and increase sales
- Lower euro exchange rate against the U.S. dollar makes VW's vehicles cheaper for U.S. citizens
- The current rates are the lowes in hisoty, so capital for new technological competence can be acquired easily
- China is the world's largest automative market share and the largest VW's market in terms of number of vehicles sold
Strengths
- KOs involve the creation of new electronic cars with a clear direction and improvement in efficiency and profitability, which many automative companies are lacking
- Synergy creates catering for different consumer groups.
- No other VW rival has so many brands under its management
- VW revenue comes from many different ascpects (brands, products); by far the best diversified income among all automative companies
Threats
- Governments are encouraging fuel effciency which increases manufacturing costs
- VW is faces with an ever increased competition from traditional automative companies, new players (Google, Tesla) and saturation of its main markets.
- The company is involved in many lawsuits all over the world, which seek to convict VW.