CIA I

Global business

Topic: To develop an understanding about Globalization and International Business

Submitted to: Prof. GUPTESWAR PATEL

School of Business and Management

Christ (Deemed to be University), Bengalore

Submitted by:

Harsh

2220716

4-BBA-G

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About the Company - Volkswagen

Few names evoke the same feelings as Volkswagen. The iconic "VW" emblem, seen on a lot of cars
worldwide, stands for affordability, dependability, and technological prowess. However, the story of
the Volkswagen Group is far more complex than just glistening metal and alluring styles. The tale of
perseverance, determination, and never-ending redesigning has woven a web of car-related
companies across continents and captured the hearts of millions of people.
The Volkswagen was founded in 1937, but the People's Car came into being during the Nazi
Germany's formative years. Ferdinand Porsche was a visionary engineer who created the iconic
Beetle, a symbol of transportation and optimism for a Europe devastated by war.
However, Volkswagen's goals would not be limited to just one vehicle. The Group soon started an
unrelenting growth strategy, founding and purchasing brands including Bugatti, SEAT,
Lamborghini, Audi, Porsche, Škoda, and Bentley. With a broad range of vehicles that satisfied every
taste—from sensible hatchbacks to eye-catching luxury supercars—the Group cemented its standing
as a major player in the world market.
Current Global Scenario
The goal of this growth was to establish roots around the globe, not just promote brands. The
Volkswagen Group now has production sites spread across 12 nations, from Slovakia to South
Africa and Brazil to China. They can adjust their services to different driving cultures and market
demands by taking into account local requirements and preferences thanks to their worldwide
network. The Group rules over Europe, their own continent. Brands with significant market shares,
such Volkswagen, Audi, and Škoda, dominate the continent's automotive landscape. But their
influence extends well beyond their European roots. China has developed into a crucial
battleground for the Group through joint ventures and wholly-owned cooperations, supplying the
largest automobile market in the world with goods that are tailored to regional tastes. Volkswagen's
Phaeton and Tiguan SUVs, which were created especially for Chinese drivers, demonstrated their
understanding of regional demands.
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The Americas haven't fallen behind as much. Volkswagen is well-represented in Latin America,
despite the fact that its US sales have not yet caught up to those in Europe, with Brazil continuing to
be one of its two largest worldwide markets. As it moves forward, Volkswagen promises to forge
new paths and leave its mark on every mile in every nation for future generations.

Different Modes of Foreign Market Entry

They have developed a variety of international market entrance strategies, customizing their
strategy to each new environment, to meet their aggressive expansion ambitions.
• Exports: Volkswagen is the most straightforward example; it exports well-known cars like
the Passat and Golf to other markets from its well-established production facilities in
Germany. When used by well-known models in nations with advantageous trade
agreements, this strategy is less expensive; but, it requires backing from distribution
networks and well-known brands. Examples include the shipment of Czechoslovak
automobiles to India and German-made Audi models intended for American consumers.
• Brownfields & Greenfields: Volkswagen often makes investments in brownfields or the
construction of new assembly facilities in response to increases in market demand. Better
market penetration, operational leverage, and the chance to tailor production to local needs
are all made possible by this. Two such plants include the SEAT factory in Martorell, Spain,
and the Koda plant in Aurangabad, India.
• Joint Ventures: Volkswagen often forms strategic relationships with local partners in order
to get over legal or cultural restrictions, as opposed to just ignoring them like Hyundai does.
These "joint ventures"—like SAIC Volkswagen in China, where Shanghai Automotive
Industry Corporation (SAIC) collaborates with Volkswagen to develop vehicles like the Polo
and Tiguan—benefit from the expertise and market insights of both partners.
• Acquisitions: In order to gain quick market share and boost brand awareness, Volkswagen
has carefully bought well-known brands like Bentley, Lamborghini, and Porsche. They get
additional clients as a result, strengthening their position in the market. Like the purchase of
Škoda in the Czech Republic.
• Alliances & Groups: Volkswagen participates in partnerships like the Artemis self-driving
system and the Ionity high-speed charging network to solve cross-industry concerns
including the development of electric cars and autonomous driving technologies. These
collaborations combine resources and skills to get better results.

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Global Presence of Volkswagen Group:
Europe: With large margins in its main markets of Germany, France, Italy, and Spain, Volkswagen
leads the market domestically. Audi and Porsche dominate the luxury segment, with Škoda firmly
positioned at the other end of the Eastern European consumer spectrum.

North America: Volkswagen has had some success in some areas with models like the Jetta and
Atlas, despite fierce competition in the US market. One of the largest auto production facilities,
producing vehicles like the Golf and Tiguan, is located in Mexico.

South America: Volkswagen is leading the pack in Brazil, a significant stronghold. Robust sales of
models like the Gol and Fox serve to further solidify their dominance

Asia: China is Volkswagen's second-largest market, with joint ventures like SAIC Volkswagen
producing best-sellers like the Santana and Lavida. India is another key market, where Škoda enjoys
significant popularity.

Other Regions: Volkswagen has a notable presence in Africa, with production facilities in South
Africa and assembly plants in Kenya and Nigeria. Their reach extends to Australia and even
Vietnam, highlighting their global network.

Strategies To Consider :
Future developments for VW's approach to entering overseas markets are probably going to
centeron:
• Emphasizing on developing markets: Making the most of the potential that Africa, Southeast
Asia, and India provide by drawing on their existing connections and understanding of
regional requirements.
• Creating designs for varying demands, such as SUVs and crossovers to be essential in every
market, and embracing an electric future are two ways to adapt to shifting customer tastes.
• Working together to innovate: Maintaining the current trend of forming alliances to combat
environmental problems and create cutting-edge technologies like driverless vehicles.
The globalization of the Volkswagen Group serves as a case study for flexibility, business
partnerships, and unceasing innovation. But while they attempt to navigate the shifting global
landscape, their many entrance points and extensive influence will guarantee that they stay at the
top, consistently leaving their mark on every street on this planet.
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 References:

• https://www.volkswagen.co.in/en.html

• Volkswagen Group | Overview, History, & Facts | Britannica

• Statistics & Facts on Volkswagen | Statista