VAUXHALL- Evaluate the macro

environment affecting
a UK company

RAISING THE implementation of the

strategy, and the
challenges and

STANDARD
opportunities to the
firm.

Mohammed Hussain (22152881) Ryhaan Malique (22147803) Amaan Hussain (22146354)

INTRODUCTION: UNDERSTANDING VAUXHALL'S MACRO
ENVIRONMENT AND INDUSTRY DYNAMICS
In today's dynamic business landscape, companies must navigate a complex web of external factors that shape their
strategies, operations, and competitive positioning. Vauxhall, a prominent name in the UK automotive industry,
faces a variety of challenges and opportunities influenced by the macro environment and industry dynamics.

Vauxhall operates in an environment characterised by rapid technological advancements, shifting consumer

preferences, regulatory pressures, and intensifying competition. Understanding these external forces is crucial for
Vauxhall to formulate effective strategies to capitalise on opportunities, and mitigate risks.

Through a comprehensive examination of the macro environment, industry dynamics, and critical success factors,
this analysis aims to provide insights into the strategic implications for Vauxhall. By identifying key opportunities
and challenges, Vauxhall can proactively adapt its strategies to thrive in a rapidly evolving automotive landscape
while maintaining its market relevance and competitive edge.
 PESTEL ANALYSIS

● Political - •Brexit implications on trade agreements and regulations, affecting Vauxhall's supply chain and
export/import operations.
● Economical - Economic downturns can reduce consumer purchasing power and demand for cars, affecting Vauxhall's
sales.
● Social - Shifting consumer preferences towards eco-friendly vehicles may affect demand for traditional combustion
engine cars produced by Vauxhall.
● Technological - •Advancements in electric vehicle technology and autonomous driving impacting Vauxhall's product
development strategies.
● Environmental - Strict environmental regulations regarding emissions and fuel efficiency standards affecting
Vauxhall's product portfolio and manufacturing processes.
● Legal - Compliance with safety regulations and standards in the automotive industry.
PESTEL ANALYSIS 2

● Political - Government policies regarding emissions standards and fuel efficiency regulations impacting
Vauxhall's product development and manufacturing processes.
● Economical - Exchange rate fluctuations impacting the cost of importing/exporting vehicles and components.
● Social - Changing demographics and lifestyle preferences influencing the demand for specific car models or
features.
● Technological - Integration of digital platforms and connectivity features in cars influencing consumer
preferences and expectations.
● Environmental - Risks associated with climate change and natural disasters affecting Vauxhall's supply chain
and production facilities.
● Legal - Employment laws and regulations impacting Vauxhall's labor practices and workforce management.

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5
PORTER’S FIVE FORCES ANALYSIS 1

•Five forces analysis is used to analyse the competitive forces within the industries for this instance I will be
talking about Vauxhall and what competitive forces they have within the manufacturing industry
•For Vauxhall, the 5 forces analysis are
•Threat of New Entrants
•Bargaining powers of new buyers
•Bargaining power of suppliers
•Threat of substitutes
•Rivalry among existing competitors
PORTER’S FIVE FORCES ANALYSIS 2
• Threat of new entrants
•For Vauxhall this is moderate to high as new entrants could still emerge this is a threat because as electric cars are on the rise
other brands may cater towards that and therefore Vauxhall potentially could be at risk for losing returning customers
•Bargaining powers of new buyers
•Buyers have the power to bargain but if Vauxhall re assure their customers by having a quality product and brand loyalty bulk
buyers have more bargaining power as they are doing a bulk purchase- moderate
•Bargaining power of suppliers
•- Moderate- they have some bargaining power however Vauxhall has more leverage over that because of their scale to source
from multiple suppliers not just one
•Threat of substitutes
•Moderate- Whilst different modes of transport do exist having the flexibility of owning a car gives the consumer more freedom
and control
•Rivalry amongst existing competitors
•The industry which Vauxhall are in is highly competitive with other manufactures are competing for different things such as
pricing , technology and product differentiation and marketing efforts, Main competitors for Vauxhall are ford , Volkswagen, Toyota
and Hyundai
• Overall this analysis can help Vauxhall understand and grasp competitive dynamics within the industry and by that they can
work out different strategies to address the threats and competitors

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CRITICAL SUCCESS FACTORS 1

There are various Critical Success Factors that I will be explaining about Vauxhall and comparing them
to their market competitors.

Product quality - Every car company wants to be known for their reliability and Vauxhall is definitely
improving. In the telegraphs rating for reliability they came 4th out of 20 cars in reliability. But, they can
do better as for every 100 cars, 90 have some sort of reliability problems. (Mockett,2017)

Customer satisfaction - For customer satisfaction, 24 of the most popular cars driven in the UK have
been ranked, which takes into account customer satisfaction. Vauxhall surprisingly have come 11th
beating their rivals and the biggest car companies such as Ford, Mazda and Nissan. They are above
average in terms of their cars. Companies that beat Vauxhall are the likes of Mercedes, Honda and
Land Rover which may not been seen as competitors to Vauxhall. (Braithwaite-Smith, 2018)
 CRITICAL SUCCESS FACTORS 2

Environmental Sustainability - Vauxhall have environmental and energy principles which they want to go by, some of
these principles are: reducing waste and emissions, development of alternative propulsion systems and support the
purchase of energy sufficient services and products. (www.vauxhall.co.uk, n.d.)

Market positioning - Vauxhall had solely positioned itself on price, but this was unsustainable for the company. Vauxhall
are struggling with their market branding and are struggling to gain customers compared to other companies. They are in
decline of sales, but are at least retaining customers. (Fleming, 2019)

Overall these are some critical success factors that Vauxhall does or need to do to be a successful company and be
competing with other companies. Critical Success Factors are essential for companies like Vauxhall to navigate the
complexities of their industry and achieve their objectives. For Vauxhall to have or keep a competitive edge and grow it
needs critical success factors to follow on, and by prioritising certain factors, Vauxhall can enhance performance.

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RECOMMENDATIONS
There are multiple ways in which Vauxhall can improve its strategic position and become more known and
valuable.
In a rating of 20 cars compared based on how eco friendly they are, Vauxhall came 15th, which is not where
they want to be, and this will not appeal to a lot customers who are trying to choose the most economical car.
They need to have a different strategy and look at ways to become more eco friendly and maybe even take a
look at how their competitors are doing. (www.businesscar.co.uk, n.d.)
Another way they can improve is the expansion of product portfolio. The major car companies all have different
types of cars such as SUVs and are coming into the electric market. This will not appeal to a lot of customers
again, and this is a reason why they are not even top 25 car companies in the world.(Bradley, 2023)
Out of 32 cars ranked in terms of reliability, Vauxhall are 30th for reliability on cars that are more than 5 years
older. Customers seeing this, would be put off buying older gen cars and would look somewhere else. Vauxhall
need to improve their reliability on older cars and make sure their newer cars do not have any problems too.
(www.whatcar.com, n.d.)

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CONCLUSION

In Conclusion the main strategic implications for vauxhall is adaptation to

market trends,differentiation and customer relationship management these
strategies are something that vauxhall need to take into consideration to
increase their longevity and therefore this will make the brand more stronger
to compete in all fronts
REFERENCES
Mockett, A. (2017). Are Vauxhall’s Reliable? An Unbiased Look at the British Brand. [online] OSV. Available at: https://www.osv.ltd.uk/are-
vauxhall-relibale/#:~:text=Are%20Vauxhall%E2%80%99s%20Reliable%3F%20Vauxhall%20make%20pretty%20reliable%20cars%2C
[Accessed 9 Mar. 2024].

Braithwaite-Smith, G. (2018). JD Power: the UK’s most satisfying car brands. [online] Motoring Research. Available at:
https://www.motoringresearch.com/car-news/jd-power-most-satisfying-car-brands/ [Accessed 9 Mar. 2024].

www.vauxhall.co.uk. (n.d.). Corporate Sustainability | Environment | Vauxhall Discover. [online] Available at:
https://www.vauxhall.co.uk/discover/sustainability/corporate-sustainability.html.

Fleming, M. (2019). Vauxhall boss: Our brand positioning was unsustainable. [online] Marketing Week. Available at:
https://www.marketingweek.com/vauxhall-boss-turnaround-strategy/ [Accessed 10 Mar. 2024].

www.businesscar.co.uk. (n.d.). Greenest car makers analysis: Green rating fleet’s top 20. [online] Available at:
https://www.businesscar.co.uk/analysis/2015/greenest-car-makers-analysis-green-rating-fleets-top-20 [Accessed 10 Mar. 2024].

Bradley, M. (2023). 25 Largest Car Companies in the World (Ranked By Sales 🚗💰). [online] Luxe Digital. Available at:
https://luxe.digital/lifestyle/garage/largest-car-companies/.