Published by MBA Skool Team, Last Updated: August 16, 2021
SWOT analysis of Volkswagen analyses the brand by its strengths, weaknesses, opportunities & threats. In Volkswagen SWOT Analysis, 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. 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:
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.
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
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
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
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
There are several brands in the market which are competing for the same set of customers. Below are the top 12 competitors of Volkswagen:
Volkswagen is a German automobile giant having wide reach due to early foundations
Car users looking for sedan, SUV, hatchback
Young executives, businessmen and urban families
Volkswagen is positioned as one of the biggest automobile and car manufacturers
Volkswagen Product Portfolio
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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