SWOT Analysis of the Company: Volkswagen Strength

Backed with the high quality and professional team in the HRD Dept. The financial aspect is very strong. Wide range of products for all class. Brand Name. Global Presence.

Weakness Less number of showrooms. The service centers in India are very few and scare. Opportunity

With wide range in products, features and different price range for different people, it has an advantage over the competitors around. As the standard of living in India has increased the purchasing power of the people as increased as well, so Volkswagen has to target right customer at right time to gain the most out of the situation Threat

Competition from companies like Tata, Maruti, Honda, GM etc. which have already made a customer base. Late entry in Indian Market. High price of the product as compared to competitors

OUR MISSION VW Autoeuropa strives for excellence in the manufacture of high quality cars in

Portugal, and is perfectly aware of the fact that success, in an ever increasingly competitive market, depends on this philosophy. What we demand from ourselves reflects this challenge: integrity, respect for people and their abilities, excellent teamwork, responsibility and autonomy, leadership skills, excellent professional qualifications, and the commitment to attain a common goal. At all levels and in all areas, we are organised in work groups, in which everyone's ideas are contribute to the continuous search for the best solutions for the proposed objectives. We firmly believe in personal and professional development. Therefore, we conceived the Personal Development and Career Plan that allows us to identify and implement concrete measures suited to the development of each individual. This approach has led, for example, to a considerable investment in professional training.

OUR VISSION Autoeuropa - the most attractive Volkswagen plant in Europe. We produce our cars with highest quality and productivity based on flexible infrastructures and skilled human resources.

Strengths: The strengths of Volkswagen according to the case study are:

Re launch of the Beetle Premium small car model cemented VW's hold in the U.S. market *Even though the global car industry lurches through a stressful year, VW expects profits to grow, in 2000; they more than doubled, to $1.8 billion, on sales of $76 billion worldwide

Weakness:

The weaknesses of Olpers Kheer mix according to their market plan are:

VW did not have some car models available in the market. The competitors on the other hand were better prepared for the European market. VW was still developing SUV sports utility vehicle while the competitors took advantage of the market situation.

SWOT Analysis of Volkswagen Strengths

1. Volkswagen has boosted quality more than any other carmaker in the past five years, cutting defects by 60%

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

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3. Volkswagen's share price climbed 36% last year, nearly double the pace of the overall German market

4. In the US, where Volkswagen ADRs trade over the counter, Volkswagen outperformed GM

5. Pich has a "name", and had acquire a lot of experience running Audi

6. Volkswagen managers attend test drives, and therefore know exactly their different products

7. Their "family culture", no leading brand

8. A non-stop requirement for the new projects

9. Cost-control with the purchasing list

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

11. Hide financial results through German accounting principles

Weaknesses

1. Volkswagen still trails Toyota, Mercedes, Nissan, and Honda in overall quality

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

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

4. Pich blurs the line between his family interests and those of Volkswagen

5. Bad publicity due to the sue from GM

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6. Volkswagen's cost of capital is relatively higher than Daimler's

7. Volkswagen bungled its communications with investors

Opportunities

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

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

3. Due to its very good results on the stock exchange, Volkswagen may expect to attract numerous new investors

4. Potential cost decrease with their production strategy - five platforms only

Threats

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

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

3. Risk of brand dilution, confusion between the Volkswagen Passat and the Audi A4

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