Volkswagen SWOT Analysis, Competitors & USP

Volkswagen SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Volkswagen, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Volkswagen to benchmark its business & performance as compared to the competitors, and make strategic improvements. Volkswagen is one of the leading brands in the automobiles sector.

The article below lists the Volkswagen SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Volkswagen SWOT Analysis:

SWOT Analysis of Volkswagen

For Volkswagen, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Volkswagen Strengths

The strengths of Volkswagen looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Volkswagen :

1. Volkswagen has a wide range of cars which provides enough options to choose from

2. Volkswagen has a high brand presence and recall

3. One of the oldest car manufacturers, resulting into increased reach to masses

4. Owner of Audi, Bentley, Bugatti, Lamborghini, Skoda which gives a wide and large customer base

5. Has over 300,000+ employees globally

6. Volkswagen has manufacturing or assembly plants in Germany, Slovakia, China, India, Indonesia, Russia, Brazil, Argentina, Portugal, Spain, Poland, Bosnia and Herzegovina, and South Africa

7. Volkswagen also has presence in hybrid cars and motorsports

8. Excellent advertising and marketing through TVCs, print media, online ads, hoardings etc

9. The company has been rewarded for its cars and services to customers

Volkswagen Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Volkswagen SWOT Analysis:

1. Intense competition from global car manufacturing companies means limited market share growth for Volkswagen

2. Controversy and fraud about the emissions of the cars caused global brand image loss

Volkswagen Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Volkswagen SWOT Analysis:

1. Create long term relationships with non-German car manufacturers

2. Implementing continuous innovations in cars to stand competition can boost Volkswagen

3. Volkswagen can enter different markets by offering cars with features attractive for the targeted market

4. Increasing purchasing power of people

Volkswagen Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Volkswagen are as mentioned:

1. Innovative features included by competitors can affect market share of Volkswagen

2. Increasing fuel costs can reduce purchase of cars

3. Government regulations and policies to protect interest of local car manufacturers e.g. TATA in India

Volkswagen Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 12 competitors of Volkswagen:

1. Honda Motors

2. Toyota Motor Corporation

3. Nissan Motors

4. Chevrolet

5. Fiat

6. Mitsubishi Motors

7. Maruti Suzuki

8. Tata Motors

9. Skoda Auto

10. Hyundai Motors

11. Volvo

12. Ford Motor Company

Hence this concludes the Volkswagen SWOT analysis.

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About Volkswagen

Volkswagen Overview
Parent Company	Volkswagen Group
Category	Sedan, Hatchback, SUV
Sector	Automobiles
Tagline/ Slogan	Das Auto
USP	Volkswagen is a German automobile giant having wide reach due to early foundations
Volkswagen STP
Segmentation	Car users looking for sedan, SUV, hatchback
Target Market	Young executives, businessmen and urban families
Positioning	Volkswagen is positioned as one of the biggest automobile and car manufacturers
Volkswagen Product Portfolio
Brands	1. Volkswagen Jetta 2. Volkswagen Beetle 3. Volkswagen Passat 4. Volkswagen Phaeton 5. Volkswagen Polo 6. Volkwagen Vento 7. Volkswagen Touareg The above mentioned brands are the prominent products under the Volkswagen product portfolio.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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