SWOT and PESTEL analysis of Volkswagen
SWOT Analysis of Volkswagen
Following would be the SWOT analysis for the organization of Volkswagen described as below:
The strengths of the organization of Volkswagen would be identified in the list below:
- Volkswagen has been identified as possessing the widest range of portfolios as per its competition amongst all the other organizations amongst different automotive organizations.
- The strategy that the organization has provided for the diversification in the company to help in the input of the employees with different cultures.
- The huge market that the organization has in China and the joint venture that the organization deals in refer to the automakers in China.
The weaknesses that the organization for Volkswagen would be listed as follows:
- The amount of negative publicity that Volkswagen has been receiving throughout the world.
- Has the highest rate of recall in the market in the United States.
- Having a low market share in the automotive market of the United States.
- Battery-driven vehicles are not considered to be an area of expertise for the organization.
The opportunities that the organization for Volkswagen would be listed as follows:
- The fuel prices have been expected to rise more in the near future.
- Acquisitions made the organization given the required competence and skills that the company was falling short of before.
- With the rise in the market, the demand for autonomous vehicles has provided an opportunity for the organization.
- The Euro exchange rate has lessened and it has been continuously dropping down.
- The focus has significantly been on improving the sustainability policies that it is rectified and identified as a remedy for redeeming the damaged brand reputation.
The threats that the organization for Volkswagen would be listed as follows:
- The competition in the market regarding car manufacturing or automobile manufacturing organizations is tremendous.
- There are still some pending other files in damages that the company still has to pay.
- The regulation of the government increasing the number of automotive cars.
PESTEL Analysis of Volkswagen
Following would be the analysis of the organization of Volkswagen:
The political changes like breaks it has effect the organization in creating such a situation that the international brands would provide rise to various difficulties for the larger and Global Business brands and therefore have required a much bigger role in the international business for the organization with the growth of effect in the automotive brands under heavier pressure.
Economic factors of a direct effect and for Volkswagen when the organization declines in the economic activity and demand for vehicles it also affected the sales and revenues of the brand. It has also survived various low from the scandal regarding diesel and it has surpassed the sales figures again.
Volkswagen is in a much better state as they are experienced for their excelling in the manufacturing of Automotive cars.
Technology has affected the organization a lot since Volkswagen mostly deals with automotive cars for the manufacturing of automobiles. The organization of Audi business also wanted to Centre that focus on the development of future mobility for the customers but Volkswagen has already done it throughout all its brand and business segments do having an upper hand.
Environmental factors are also important for the automotive industry as Volkswagen was forced to recall millions of cars since it did not meet the standard for emission in 2015.
Legal factor like the diesel scandal case has affected Volkswagen models as well and they had to pay fines in billions. The Organisation was mostly suffering from the stringent means so that no violation of the law is provided for the manufacturing of the automotive cars as they would be highly risky about being non-compliant to the legislation.