1

Case Study: A Real-Time Case Analysis on Volkswagen

Student Name (Anonymous)

BUS 5112: Marketing Management

Dr. Robert K. Green

Date 25 April 2021

 2

Case Study: A Real-Time Case Analysis on Volkswagen

Read the article: “A Real-Time Case Analysis” and then perform a case analysis that

covers the following questions:

• In your own words, what is Volkswagen’s Strategy in 2018 that was originally

announced in 2008?

• What do you believe were the most important key elements of Volkswagen’s Strategy

2018? Where did they fail?

• In order to execute Strategy 2025 (which supersedes Strategy 2018) in response to an

emissions scandal, do you believe what was suggested in the article is the best approach?

Supported by credible resources, discuss why it is the best approach or propose a better

approach.

• Discuss whether the overarching vision driving Volkswagen’s Strategy 2025 is clear

and whether the approaches they are taking will help them achieve it. Why or why not?

• Are the initiatives designed to transform certain areas of Volkswagen’s core business

achievable that are outlined in their strategy 2025? Why or why not?.

Review of the real-Time Case study on Volkswagen

Volkswagen’s 2018 strategy

Magadia et al. (2019) notes that Volkswagen’s 2018 strategy was announced in 2008, the

strategy statement says “ “become the most successful, fascinating and sustainable automobile

manufacturer” (Volkswagen Goals) and Strategies, 2017).”. The strategy is product oriented and

promises a company image reflection that of excellence exciting and sustainable. The strategy
 3

envisions product innovation, market dominance, expansion of productivity and reputation as a

lead employer.

According to Principles of marketing, (2015) "A brand is a name, picture, design, or

symbol, or combination of those items, used by a seller to identify its offerings and to

differentiate them from competitors’ offerings". The 2018 strategy fails for effectively brand and

position the company and also seems to fail at taking account of the context. Secondly, the

strategy fails to communicate its promise to the market (value exchange). Stokes, R. & The

Minds of Quirk. (2013) notes “marketing strategy aims of a firm should be aligned with your

organization’s overall business and brand-creation aims. The 2018 strategy does not clearly link

the branding aims to the overall company aim.

Volkswagen’s 2018 strategy

The 2025 Strategy in an improvement over the 2018 strategy. The new strategy

reimagines the company’s brand by focusing on the value-chain. It promises new product

development. It is more aware of what is competition and the environment, hence introducing

and researching on electric powered vehicles and CRS to improve its image. Other key aspects

that the strategy seeks to improve key functional areas including: Procurement, sales, finance and

controlling, integrity and legal pillars, Research and Development, Production, Quality

Assurance Human Resources and Organization, and IT (Magadia et al., 2019).

The overarching vision guiding the 2025 strategy albeit being an improvement from the

2018 strategy is not very clear as it focus too much of correcting the company’s image but it fails

to come out as offering the expected competitive advantage in its market positioning. A clear

strategy would sell the company as evolved from the inside out to offer the best value for its

customers. It should innovatively focus on winning back and retaining its customer base. The
 4

case study suggests revamped advertising and product promotion in order to win back the trust of

its customers (Magadia et al., 2019).

Volkswagen’s Transformation initiatives

In order to reinvent itself Volkswagen has proposed the following transformative

initiatives, build mobility business solutions, strengthen innovative power, and secure funding to

increase financial viability. Other subcomponents include:

Transform core business Build mobility solutions business, Build mobility solutions,

Strengthen innovative power, Secure funding. These initiatives are achievable, provided there is

adequate resources and effort to implement the strategy.

.
 5

References

Magadia, R., Hanno, M., Kadoo, A., Akinsaya, D., & Carlson, A. (2019). A Real-Time Case
Analysis. https://doi.org/10.13140/RG.2.2.16446.74563

Organizational Behavior. (2017) University of Minnesota Libraries Publishing edition. This

edition adapted from a work originally produced in 2010 by a publisher who has
requested that it not receive attribution. https://doi.org/10.24926/8668.1501

Stokes, R. & The Minds of Quirk. (2013). eMarketing: The essential guide to marketing in a
digital world (5th Ed.). Quirk eMarketing (Pty)
Ltd. https://www.redandyellow.co.za/content/uploads/woocommerce_uploads/2017/10/emar
keting_textbook_download.pdf