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Presentation Presentation on on
Strategic Business Strategic Business Management & Management &
PlanningPlanning
Contents of this Contents of this Presentation Presentation
Company overview of Volkswagen UK
PESTLE AnalysisPorters Five Forces AnalysisSWOT AnalysisProcess of Gaining Competitive
AdvantagePotential Challenges for Volkswagen
•Founded in 1937 in Germany •Started business in the UK in 1952•World Third largest and the largest automaker in the origin market.•Production output: 9.3 Million in 2012•Product: Automobiles, commercial vehicles, engaines, motocycles, turbomachine
Company Overview of Company Overview of VolkswagenVolkswagen
Political Factors Economic Factors Social Factors Technological Factors Legal Factors Environmental Factors
PESTLE Analysis PESTLE Analysis
Government rules and regulation Changes of Government Political stability Encouragement of Foreign
Investment in Automobile sector
Political Factors Political Factors
Economic Factors Economic Factors Global Financial Crisis Reducing Public spending power Unstable fuel Prices in
International MarketSocial Factors Social Factors
Availability of workforce Social status of Public to spend
money Customers priority of spend
money
Developing new technologies and bringing innovation
Concentration on Manufacturing Eco Friendly Vehicle
Technological Factors Technological Factors
Legal Factors Legal Factors Rules & Regulation adopted by
government and authorities Reducing Entry barrier for new
automaker
Porters Five Forces Porters Five Forces New Entrants
Threats of New Entrants in Relatively Low
Customers' Power
Customers Bargaining Power is Relatively high as they have got more options
Suppliers Power
Suppliers Bargaining power is relatively low as low switching cost to another suppliers
Substitutes Threats of Substitute is high as more substitute products
Industry Rivalry
Intense Competition among rival competitors
SWOT Analysis SWOT Analysis Strength
Brand ValueControls almost entire value chainDifferentiation leader Operational Efficiency International standard products
Weakness Poor Cash flowpoor timing for certain vehicle launches
Opportunities InnovationEntering new marketsMarket penetration on existing markets
Threats Future effect on brand due to competition among the Automobile Manufacturers
Process of Gaining Process of Gaining Competitive Advantages Competitive Advantages Develop, innovate and provide
customer oriented automobile Invest more attention on research
and development activities. Get up-to-date with latest
technological advancement Secure market leading role
through efficient and effective management skills
Identify Future Challenges Identify Future Challenges Expansion of Market in Emerging
market Increase of Raw materials for
automobile industry Intense Competition among
competitorsFriendly environment for new entrants Increase Customers' demand and
bargaining power Adjust with latest technological
advancement
Future Challenges Future Challenges Uncertain global economic
stability Increasing demand for Price
Discount Potential Merger & Acquisition
among competitors. Increasing challenges regarding
capital requirements
Question Answer Question Answer Session Session
THANK YOU THANK YOU
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