Volkswagen Strategy Case Study
Key Learning Outcomes
- Analyse the UK automobile industry and how the five forces have affected Volkswagen and rivals and the impact on industry structure, attractiveness, and profitability.
- Analyse the various strategic business units in Volkswagen's portfolio and assess which ones are the stars and cash cows generating the most value, or the question marks, and dogs that may need further investment or divesting to achieve a balance of the portfolio.
- To apply strategy business models and frameworks such as Porters five forces to real company cases.
Analyse Volkswagen using Porters five forces and assess how the five forces affect Volkswagen and the Automobile industry in the UK.
1.0 INTRODUCTION
Established in 1937, Volkswagen produces and sells passenger cars under various brands such as Audi, Bugatti, Porsche, Bentley, SEAT, Škoda Lamborghini, and Volkswagen as well as motorcycles under the Ducati brand (Annual Report 2017). For over two decades, it has established and maintained the largest market share in Europe reaching production output of 4.7 million vehicles in Europe in 2017 out of 10million sold globally.