Description
Volkswagen Group and its subsidiaries, is a German multinational automotive manufacturing company headquartered in Wolfsburg, Lower Saxony, Germany. In 2014, it has reached production output of 10.14 million (2014).
Volkswagen AG Volkswagen AG
Situation Analysis
Situation Analysis
EBA 605, Dr. J. Coleman
EBA 605, Dr. J. Coleman
Saturday, ar!" ##, $006
Saturday, ar!" ##, $006
%eam a&&im
'resents
(ro)e!t Goals * +,)e!ti-es
(ro)e!t Goals * +,)e!ti-es
?
.ig"lig"t trends in t"e automo,ile industry
.ig"lig"t trends in t"e automo,ile industry
?
Analy/e and !riti0ue Volkswagen re!ent
Analy/e and !riti0ue Volkswagen re!ent
de!isions
de!isions
?
Dis!uss w"ere and w"y V1 went wrong
Dis!uss w"ere and w"y V1 went wrong
?
+22er 'otential solutions as an o,)e!ti-e
+22er 'otential solutions as an o,)e!ti-e
outsider
outsider
Volkswagen AG
(resentation +-er-iew
(resentation +-er-iew
?
Com'any +-er-iew
Com'any +-er-iew
?
Brand (ort2olio
Brand (ort2olio
?
Current Situation
Current Situation
?
%"e V1 Customer
%"e V1 Customer
?
Com'etiti-e Analysis
Com'etiti-e Analysis
?
3inan!ials
3inan!ials
?
S1+% Analysis
S1+% Analysis
?
4uestions
4uestions
Volkswagen AG
Volkswagen AG
Cor'orate +-er-iew
Cor'orate +-er-iew
?
.45 1ol2s,urg, Germany
.45 1ol2s,urg, Germany
?
6S +'erations5 Au,urn .ills, 7
6S +'erations5 Au,urn .ills, 7
?
Euro'e8s 9# automo,ile manu2a!turer
Euro'e8s 9# automo,ile manu2a!turer
?
%raditional Brands5
%raditional Brands5
Jetta, Passat, Touareg,
Jetta, Passat, Touareg,
Phaeton, Fox and Audi
Phaeton, Fox and Audi
?
7nternational Brands5
7nternational Brands5
SEAT and SKODA
SEAT and SKODA
?
Annual 'rodu!tion5 5 -e"i!les
Annual 'rodu!tion5 5 -e"i!les
?
Annual sales5 :#$#,; ?+? growt"
Annual sales5 :#$#,; ?+? growt"
?
Em'loyees5 ;G0s #>G0s
? Begin !ar -enture in
C"ina
? (ur!"ased SEA%
? 3ormed Autolatin in
Bra/il
#>>0s #>>0s
?Built C"ina8s largest
auto 'lant
?Aaun!"ed (assat
? A!0uires HollsIHoy!e
and Bugatti
? Aaun!"ed Jew
Beetle in 6S
$000s $000s
?
S'ent ;.#B to S'ent ;.#B to
moderni/e 2a!tories moderni/e 2a!tories
?
%"e 2inal Beetle %"e 2inal Beetle
ended a F0Iyear run ended a F0Iyear run
?
7n-ested #.FB in 7n-ested #.FB in
C"ina DAsia=(a!i2i!E C"ina DAsia=(a!i2i!E
?
Bernd (is!"etsrieder Bernd (is!"etsrieder
)oined !om'any )oined !om'any
Volkswagen AG
Volkswagen Grou' Brand (ort2olio
Volkswagen Grou' Brand (ort2olio
emotion
functionality
sophistication
/ones o2
low demand
/ones o2
low demand
Volkswagen AG
Current Situation K (ro)e!t Basis
Current Situation K (ro)e!t Basis
L(ors!"e in!rease stake in V1
LHe!ently "ired 1ol2gang Bern"ard
to "ead V1 grou'
LAaun!"ed BoonrakerC 'ro)e!t
LAoosing s"are in C"ina market
L(ulled out 6S lu&ury market
LV1 to !ut $0,000 )o,s
L3erdinand (ie!" ste's down as
C"airmanMMM
Triple threat:
L"ig" !osts
Lin2lated sti!ker 'ri!e
L0uestiona,le 0uality
HIGHS
LOWS
Some may say this is a high gi!en that he engage" VW in
High risk# high rewar" strategies
Volkswagen AG
%"e V1 Customer
%"e V1 Customer
?
(ositioning Statement5
(ositioning Statement5
For the cost conscience buyer, Volksagen
For the cost conscience buyer, Volksagen
o!!ers reliability and "alue#
o!!ers reliability and "alue#
?
Value (ro'osition5
Value (ro'osition5
K
%arget arket5 Cost !ons!ien!e ,uyer D'arents,
%arget arket5 Cost !ons!ien!e ,uyer D'arents,
2emales, young adultsE
2emales, young adultsE
K
Bene2its o22ered5 German te!"nology
Bene2its o22ered5 German te!"nology
K
Helati-e 'ri!e5 A22orda,le, relia,le
Helati-e 'ri!e5 A22orda,le, relia,le
Volkswagen AG
%"e V1 Customer
%"e V1 Customer
$oung
%emale
Age &'()*
+ollege(,"ucate"
-arents
Aspirational !alue
Glo.al /each
0SA# %rance
Spain# 01
Germany
Italy# +hina
Value conscience
Volkswagen AG
Volkswagen Glo,al arketing i&
Volkswagen Glo,al arketing i&
*
)
2
?
Brand 'ort2olio
?
Volkswagen
?
Audi
?
Seat
?
Nkoda
?
Bugatti
?
Bentley
?
Aam,org"ini
?
Commer!ial -e"i!les
&
?
6ni0ue ,rand identity 2or
ea!" name'late
?
Com'lete 'rodu!t range
?
ostly standardi/ed 'rodu!ts
wit" minor ada'tations
?
Setting 'ri!es wit" regard to
!om'etitors
?
(ri!e dis!rimination a!ross
regions
?
Jo 'ri!e !om'etition in
emerging markets
?
Stri!t !ost !ontrolling
?
Glo!ali/ed !ommuni!ation
?
Em'"asis on t"e Euro'ean
market
?
Brand ad-ertising
?
Emotionali/ation
?
De-elo'ment o2
distri,ution 'artners
?
Se'arated
distri,ution
!"annels 2or ea!"
,rand
?
7nternational
standardi/ation o2
dealers
Glo.al
3arketing 3i4
V1 Com'etiti-e Analysis
V1 Com'etiti-e Analysis
Volkswagen AG
Golf
5etta
6ew 7eetle
-assat
-haeton
Touareg
6um.ers .ase" on *882 3arke tshare
Volkswagen AG
+'erating argin +'erating argin
Jet (ro2its Jet (ro2its
Volkswagen AG
5 ?ear Sales %rend Din ,illionsE
5 ?ear Sales %rend Din ,illionsE
LSales increase" .y 29': in *882
LSharehol"ers net profits
LSu.stantial "ecrease ;88 to /OA
Volkswagen AG
S1+% AJAA?S7S
S1+% AJAA?S7S
ST/,6GTHS
3arket Lea"ers
High 7ran" ,?uity
%ocus on Inno!ation
O--O/T06ITI,S
6ew market to e4plore @In"iaA
Auto sales up )8:
*8&8 In"ia will ha!e )B4 more cars
Increase "isposa.le income
Launch new mo"els
W,A16,SS
Slow re!enue growth
Low presence in S0V market
/ising a"min e4penses
TH/,ATS
%ierce competition
Increasing steel prices
Cecline car sales in 09S9
Low consumer spen"ing in Germany
Volkswagen AG
C"allenges and HisksM
C"allenges and HisksM
Costs
Costs
He-enue and
He-enue and
(er2orman!e
(er2orman!e
f
u
t
u
r
e
c
u
r
r
e
n
t
L7n!reasing 'rodu!t !osts
L.ig" in-estments
L3urt"er 'ri!e 'ressures
LC"inese o'erations
L6S o'erationsIlu&ury market
L:=O E&!"ange rates
L(ri!e 'ressure
L1eak e!onomy
LDe're!iation
LAegislation
L7n-estments in 2uture markets
LHaw material 'ri!es
LAa,or !osts
Volkswagen AG *88= Strategy 3eeting
Volkswagen AG
%"ank youP
%"ank youP
He2eren!es
He2eren!es
?
Cul', Eri!, BV1 in 3res" %rou,le as it 1it"draws 6S odelC, @nig"t Cul', Eri!, BV1 in 3res" %rou,le as it 1it"draws 6S odelC, @nig"t
Hidder %ri,une Business Jews, ##=05, 'g # Hidder %ri,une Business Jews, ##=05, 'g #
?
3lint, Jerry, B%"e 3ast and t"e 3uriousC, 3lint, Jerry, B%"e 3ast and t"e 3uriousC, www.2or,esauto.!om www.2or,esauto.!om, 0#=06 , 0#=06
?
3ondon, Daren, BA (it!" to t"e Hi!"C, %imes +nline, ##=0; 3ondon, Daren, BA (it!" to t"e Hi!"C, %imes +nline, ##=0;
?
.oo-er8s Com'any 7n2ormation, .oo-ers, 7n!., $006 .oo-er8s Com'any 7n2ormation, .oo-ers, 7n!., $006
?
Aandler, ark, BVolkswagen C"airman Ste' DownC, Aandler, ark, BVolkswagen C"airman Ste' DownC, $e %ork Ti&es $e %ork Ti&es, ,
0#=06 0#=06
?
Aandler, ark, B(ors!"e to Build a $0Q Stake in V1C, Detroit Jews K Aandler, ark, B(ors!"e to Build a $0Q Stake in V1C, Detroit Jews K
Auto 7nsider=Jew ?ork %imes Jews Ser-i!e, 0>=05 Auto 7nsider=Jew ?ork %imes Jews Ser-i!e, 0>=05
?
(ower, Ste'"en, B+n!e .ot Volkswagen Attem'ts to He-erse 6.S. Sales (ower, Ste'"en, B+n!e .ot Volkswagen Attem'ts to He-erse 6.S. Sales
De!lineC, 1allstreet Journal DEastern EditionE, Jew ?ork, 0>=05, 'g A; De!lineC, 1allstreet Journal DEastern EditionE, Jew ?ork, 0>=05, 'g A;
?
Han!anelli, Vito J., B%urn Around A"ead at VolkswagenC, Barron8s, 05=05, Han!anelli, Vito J., B%urn Around A"ead at VolkswagenC, Barron8s, 05=05,
Vol. G5, 7ssue $0, 'g $6 Vol. G5, 7ssue $0, 'g $6
?
%"omas, C"ad * Ar!"ey, S"eenag", B(ors!"e Buys $0Q in t"e V18s %"omas, C"ad * Ar!"ey, S"eenag", B(ors!"e Buys $0Q in t"e V18s
S"are to (re-ent %akeo-erC, Bloom,erg S"are to (re-ent %akeo-erC, Bloom,erg Jews Jews, ,
"tt'5==0uote.,loom,erg.!om=a''s=news "tt'5==0uote.,loom,erg.!om=a''s=news, 0>=$05 , 0>=$05
Volkswagen AG
Volkswagen AG
He2eren!es
He2eren!es
?
Brodri!k, Sean. Set ?our Sig"ts +n Asia8s Slee'ing Ele'"ant. Brodri!k, Sean. Set ?our Sig"ts +n Asia8s Slee'ing Ele'"ant.
"tt'5==www.es!a'eartist.!om=e2am=F0=7n-estR7nR7ndia."tml "tt'5==www.es!a'eartist.!om=e2am=F0=7n-estR7nR7ndia."tml
?
www.datamonitor.!om
doc_163431476.ppt
Volkswagen Group and its subsidiaries, is a German multinational automotive manufacturing company headquartered in Wolfsburg, Lower Saxony, Germany. In 2014, it has reached production output of 10.14 million (2014).
Volkswagen AG Volkswagen AG
Situation Analysis
Situation Analysis
EBA 605, Dr. J. Coleman
EBA 605, Dr. J. Coleman
Saturday, ar!" ##, $006
Saturday, ar!" ##, $006
%eam a&&im
'resents
(ro)e!t Goals * +,)e!ti-es
(ro)e!t Goals * +,)e!ti-es
?
.ig"lig"t trends in t"e automo,ile industry
.ig"lig"t trends in t"e automo,ile industry
?
Analy/e and !riti0ue Volkswagen re!ent
Analy/e and !riti0ue Volkswagen re!ent
de!isions
de!isions
?
Dis!uss w"ere and w"y V1 went wrong
Dis!uss w"ere and w"y V1 went wrong
?
+22er 'otential solutions as an o,)e!ti-e
+22er 'otential solutions as an o,)e!ti-e
outsider
outsider
Volkswagen AG
(resentation +-er-iew
(resentation +-er-iew
?
Com'any +-er-iew
Com'any +-er-iew
?
Brand (ort2olio
Brand (ort2olio
?
Current Situation
Current Situation
?
%"e V1 Customer
%"e V1 Customer
?
Com'etiti-e Analysis
Com'etiti-e Analysis
?
3inan!ials
3inan!ials
?
S1+% Analysis
S1+% Analysis
?
4uestions
4uestions
Volkswagen AG
Volkswagen AG
Cor'orate +-er-iew
Cor'orate +-er-iew
?
.45 1ol2s,urg, Germany
.45 1ol2s,urg, Germany
?
6S +'erations5 Au,urn .ills, 7
6S +'erations5 Au,urn .ills, 7
?
Euro'e8s 9# automo,ile manu2a!turer
Euro'e8s 9# automo,ile manu2a!turer
?
%raditional Brands5
%raditional Brands5
Jetta, Passat, Touareg,
Jetta, Passat, Touareg,
Phaeton, Fox and Audi
Phaeton, Fox and Audi
?
7nternational Brands5
7nternational Brands5
SEAT and SKODA
SEAT and SKODA
?
Annual 'rodu!tion5 5 -e"i!les
Annual 'rodu!tion5 5 -e"i!les
?
Annual sales5 :#$#,; ?+? growt"
Annual sales5 :#$#,; ?+? growt"
?
Em'loyees5 ;G0s #>G0s
? Begin !ar -enture in
C"ina
? (ur!"ased SEA%
? 3ormed Autolatin in
Bra/il
#>>0s #>>0s
?Built C"ina8s largest
auto 'lant
?Aaun!"ed (assat
? A!0uires HollsIHoy!e
and Bugatti
? Aaun!"ed Jew
Beetle in 6S
$000s $000s
?
S'ent ;.#B to S'ent ;.#B to
moderni/e 2a!tories moderni/e 2a!tories
?
%"e 2inal Beetle %"e 2inal Beetle
ended a F0Iyear run ended a F0Iyear run
?
7n-ested #.FB in 7n-ested #.FB in
C"ina DAsia=(a!i2i!E C"ina DAsia=(a!i2i!E
?
Bernd (is!"etsrieder Bernd (is!"etsrieder
)oined !om'any )oined !om'any
Volkswagen AG
Volkswagen Grou' Brand (ort2olio
Volkswagen Grou' Brand (ort2olio
emotion
functionality
sophistication
/ones o2
low demand
/ones o2
low demand
Volkswagen AG
Current Situation K (ro)e!t Basis
Current Situation K (ro)e!t Basis
L(ors!"e in!rease stake in V1
LHe!ently "ired 1ol2gang Bern"ard
to "ead V1 grou'
LAaun!"ed BoonrakerC 'ro)e!t
LAoosing s"are in C"ina market
L(ulled out 6S lu&ury market
LV1 to !ut $0,000 )o,s
L3erdinand (ie!" ste's down as
C"airmanMMM
Triple threat:
L"ig" !osts
Lin2lated sti!ker 'ri!e
L0uestiona,le 0uality
HIGHS
LOWS
Some may say this is a high gi!en that he engage" VW in
High risk# high rewar" strategies
Volkswagen AG
%"e V1 Customer
%"e V1 Customer
?
(ositioning Statement5
(ositioning Statement5
For the cost conscience buyer, Volksagen
For the cost conscience buyer, Volksagen
o!!ers reliability and "alue#
o!!ers reliability and "alue#
?
Value (ro'osition5
Value (ro'osition5
K
%arget arket5 Cost !ons!ien!e ,uyer D'arents,
%arget arket5 Cost !ons!ien!e ,uyer D'arents,
2emales, young adultsE
2emales, young adultsE
K
Bene2its o22ered5 German te!"nology
Bene2its o22ered5 German te!"nology
K
Helati-e 'ri!e5 A22orda,le, relia,le
Helati-e 'ri!e5 A22orda,le, relia,le
Volkswagen AG
%"e V1 Customer
%"e V1 Customer
$oung
%emale
Age &'()*
+ollege(,"ucate"
-arents
Aspirational !alue
Glo.al /each
0SA# %rance
Spain# 01
Germany
Italy# +hina
Value conscience
Volkswagen AG
Volkswagen Glo,al arketing i&
Volkswagen Glo,al arketing i&
*
)
2
?
Brand 'ort2olio
?
Volkswagen
?
Audi
?
Seat
?
Nkoda
?
Bugatti
?
Bentley
?
Aam,org"ini
?
Commer!ial -e"i!les
&
?
6ni0ue ,rand identity 2or
ea!" name'late
?
Com'lete 'rodu!t range
?
ostly standardi/ed 'rodu!ts
wit" minor ada'tations
?
Setting 'ri!es wit" regard to
!om'etitors
?
(ri!e dis!rimination a!ross
regions
?
Jo 'ri!e !om'etition in
emerging markets
?
Stri!t !ost !ontrolling
?
Glo!ali/ed !ommuni!ation
?
Em'"asis on t"e Euro'ean
market
?
Brand ad-ertising
?
Emotionali/ation
?
De-elo'ment o2
distri,ution 'artners
?
Se'arated
distri,ution
!"annels 2or ea!"
,rand
?
7nternational
standardi/ation o2
dealers
Glo.al
3arketing 3i4
V1 Com'etiti-e Analysis
V1 Com'etiti-e Analysis
Volkswagen AG
Golf
5etta
6ew 7eetle
-assat
-haeton
Touareg
6um.ers .ase" on *882 3arke tshare
Volkswagen AG
+'erating argin +'erating argin
Jet (ro2its Jet (ro2its
Volkswagen AG
5 ?ear Sales %rend Din ,illionsE
5 ?ear Sales %rend Din ,illionsE
LSales increase" .y 29': in *882
LSharehol"ers net profits
LSu.stantial "ecrease ;88 to /OA
Volkswagen AG
S1+% AJAA?S7S
S1+% AJAA?S7S
ST/,6GTHS
3arket Lea"ers
High 7ran" ,?uity
%ocus on Inno!ation
O--O/T06ITI,S
6ew market to e4plore @In"iaA
Auto sales up )8:
*8&8 In"ia will ha!e )B4 more cars
Increase "isposa.le income
Launch new mo"els
W,A16,SS
Slow re!enue growth
Low presence in S0V market
/ising a"min e4penses
TH/,ATS
%ierce competition
Increasing steel prices
Cecline car sales in 09S9
Low consumer spen"ing in Germany
Volkswagen AG
C"allenges and HisksM
C"allenges and HisksM
Costs
Costs
He-enue and
He-enue and
(er2orman!e
(er2orman!e
f
u
t
u
r
e
c
u
r
r
e
n
t
L7n!reasing 'rodu!t !osts
L.ig" in-estments
L3urt"er 'ri!e 'ressures
LC"inese o'erations
L6S o'erationsIlu&ury market
L:=O E&!"ange rates
L(ri!e 'ressure
L1eak e!onomy
LDe're!iation
LAegislation
L7n-estments in 2uture markets
LHaw material 'ri!es
LAa,or !osts
Volkswagen AG *88= Strategy 3eeting
Volkswagen AG
%"ank youP
%"ank youP
He2eren!es
He2eren!es
?
Cul', Eri!, BV1 in 3res" %rou,le as it 1it"draws 6S odelC, @nig"t Cul', Eri!, BV1 in 3res" %rou,le as it 1it"draws 6S odelC, @nig"t
Hidder %ri,une Business Jews, ##=05, 'g # Hidder %ri,une Business Jews, ##=05, 'g #
?
3lint, Jerry, B%"e 3ast and t"e 3uriousC, 3lint, Jerry, B%"e 3ast and t"e 3uriousC, www.2or,esauto.!om www.2or,esauto.!om, 0#=06 , 0#=06
?
3ondon, Daren, BA (it!" to t"e Hi!"C, %imes +nline, ##=0; 3ondon, Daren, BA (it!" to t"e Hi!"C, %imes +nline, ##=0;
?
.oo-er8s Com'any 7n2ormation, .oo-ers, 7n!., $006 .oo-er8s Com'any 7n2ormation, .oo-ers, 7n!., $006
?
Aandler, ark, BVolkswagen C"airman Ste' DownC, Aandler, ark, BVolkswagen C"airman Ste' DownC, $e %ork Ti&es $e %ork Ti&es, ,
0#=06 0#=06
?
Aandler, ark, B(ors!"e to Build a $0Q Stake in V1C, Detroit Jews K Aandler, ark, B(ors!"e to Build a $0Q Stake in V1C, Detroit Jews K
Auto 7nsider=Jew ?ork %imes Jews Ser-i!e, 0>=05 Auto 7nsider=Jew ?ork %imes Jews Ser-i!e, 0>=05
?
(ower, Ste'"en, B+n!e .ot Volkswagen Attem'ts to He-erse 6.S. Sales (ower, Ste'"en, B+n!e .ot Volkswagen Attem'ts to He-erse 6.S. Sales
De!lineC, 1allstreet Journal DEastern EditionE, Jew ?ork, 0>=05, 'g A; De!lineC, 1allstreet Journal DEastern EditionE, Jew ?ork, 0>=05, 'g A;
?
Han!anelli, Vito J., B%urn Around A"ead at VolkswagenC, Barron8s, 05=05, Han!anelli, Vito J., B%urn Around A"ead at VolkswagenC, Barron8s, 05=05,
Vol. G5, 7ssue $0, 'g $6 Vol. G5, 7ssue $0, 'g $6
?
%"omas, C"ad * Ar!"ey, S"eenag", B(ors!"e Buys $0Q in t"e V18s %"omas, C"ad * Ar!"ey, S"eenag", B(ors!"e Buys $0Q in t"e V18s
S"are to (re-ent %akeo-erC, Bloom,erg S"are to (re-ent %akeo-erC, Bloom,erg Jews Jews, ,
"tt'5==0uote.,loom,erg.!om=a''s=news "tt'5==0uote.,loom,erg.!om=a''s=news, 0>=$05 , 0>=$05
Volkswagen AG
Volkswagen AG
He2eren!es
He2eren!es
?
Brodri!k, Sean. Set ?our Sig"ts +n Asia8s Slee'ing Ele'"ant. Brodri!k, Sean. Set ?our Sig"ts +n Asia8s Slee'ing Ele'"ant.
"tt'5==www.es!a'eartist.!om=e2am=F0=7n-estR7nR7ndia."tml "tt'5==www.es!a'eartist.!om=e2am=F0=7n-estR7nR7ndia."tml
?
www.datamonitor.!om
doc_163431476.ppt