What is the SWOT analysis of Volkswagen company?

Answer 1

VW has boosted quality more than any other carmaker in the past five years, cutting defects by 60% ·

The new Beetle has injected buzz into the brand, luring buyers into dealerships where they're also snapping up Passats, Jettas, and Audis ·

VW's share price climbed 36% last year, nearly double the pace of the overall German market ·

In the US, where VW ADRs trade over the counter, VW outperformed GM ·

Piëch has a "name", and had acquire a lot of experience running Audi ·

VW managers attend test drives, and therefore know exactly their different products

· Their "family culture", no leading brand ·

A non-stop requirement for the new projects ·

Cost-control with the purchasing list ·

Own seven different car brands, offering two broad categories, one for the traditional driver and one for the performance-minded driver. ·

Hide financial results through German accounting principles

VW still trails Toyota, Mercedes, Nissan, and Honda in overall quality ·

VW is suffering from a bad image of its management department eventhough they have done an incredible work; Piëch has no relational skills, especially with the press

· They have the same problem inside the company, due to the fact that Piëch has put his own team in place when he arrived, firing all potential enemies ·

Piëch blurs the line between his family interests and those of VW ·

Bad publicity due to the sue from GM ·

VW's cost of capital is relatively higher than Daimler's ·

VW bungled its communications with investors

·Take advantage of the attractiveness of the new Beetle to get customers into point of sales

· Growth potential in the American market, last year American sales rose to their highest level in 17 years, with a 59% increase for VW and a 39% increase for Audi

· Due to its very good results on the stock exchange, VW may expect to attract numerous new investors

· Potential cost decrease with their production strategy - five platforms only

· A softening in auto sales in Europe and South America in projected for 1999

· Risk of self-cannibalization between VW's brands, like top of the line VW's models and bottom of the line Audi's

· Risk of brand dilution, confusion between the VW Passat and the Audi A4

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Nazir Momin