Volkswagen SWOT Analysis
Here is a detailed SWOT analysis of Volkswagen covering strengths, weaknesses, opportunities and threats.
Volkswagen Strengths
- Volkswagen has a wide range of cars which provides enough options to choose from
- Volkswagen has a high brand presence and recall
- One of the oldest car manufacturers, resulting into increased reach to masses
- Owner of Audi, Bentley, Bugatti, Lamborghini, Skoda which gives a wide and large customer base
- Has over 300,000+ employees globally
- Volkswagen has manufacturing or assembly plants in Germany, Slovakia, China, India, Indonesia, Russia, Brazil, Argentina, Portugal, Spain, Poland, Bosnia and Herzegovina, and South Africa
- Volkswagen also has presence in hybrid cars and motorsports
- Excellent advertising and marketing through TVCs, print media, online ads, hoardings etc
- The company has been rewarded for its cars and services to customers
Above are the strengths in the SWOT Analysis of Volkswagen. The strengths of Volkswagen looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.
Volkswagen Weaknesses
- Intense competition from global car manufacturing companies means limited market share growth for Volkswagen
- Controversy and fraud about the emissions of the cars caused global brand image loss
These were the weaknesses in the Volkswagen SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.
Volkswagen Opportunities
- Create long term relationships with non-German car manufacturers
- Implementing continuous innovations in cars to stand competition can boost Volkswagen
- Volkswagen can enter different markets by offering cars with features attractive for the targeted market
- Increasing purchasing power of people
Above we covered the opportunities in Volkswagen SWOT Analysis. The opportunities for any brand can include prospects of future growth.
Read more about Volkswagen
Volkswagen Threats
- Innovative features included by competitors can affect market share of Volkswagen
- Increasing fuel costs can reduce purchase of cars
- Government regulations and policies to protect interest of local car manufacturers e.g. TATA in India
The threats in the SWOT Analysis of Volkswagen are as mentioned above. The threats for any business can be external factors which can negatively impact its business.
Hence this concludes the Volkswagen SWOT analysis.
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About Volkswagen
The table below gives the brand overview along with its target market, segmentation, positioning & USP
| Volkswagen Overview | |
|---|---|
| Parent Company |
Volkswagen Group |
| Category |
Sedan, Hatchback, SUV |
| Sector | |
| Tagline/ Slogan |
Das Auto |
| USP |
Volkswagen is a German automobile giant having wide reach due to early foundations |
| Volkswagen STP | |
| Segmentation |
Car users looking for sedan, SUV, hatchback |
| Target Market |
Young executives, businessmen and urban families |
| Positioning |
Volkswagen is positioned as one of the biggest automobile and car manufacturers |
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