SWOT analysis:One of the strengths of Volkswagen is that they are one ofthe biggest car manufactures in the world and on top of that, they are also aparent company with massive brands under its umbrella brand, such as: Audi,Bugatti, Bentley, BMW and many more. Another strength of Volkswagen is that ofits ‘2025 strategy’. This strategy is to change how they fuel their carsbecause of how much damage diesel and petrol is doing to the environment sothey want to introduce a cleaner source of fuel that will replace thenon-renewable and toxic source and change the company for the better.
A thirdstrength of Volkswagen is their presence worldwide. They manufacture theirvehicles in countries like, Germany, South Africa and Brazil, and the companyhas been well known for a long time because it is one of the oldest carmanufactures in the world. a final strength is that they are known to have highlevels of technology built into their vehicles plus they have also recentlybeen manufacturing hybrid cars and motorcycles, showing how much the companyhas been developing.
One weakness of Volkswagen is of ‘The emission scandal’. Thisscandal affected almost 5 million cars as they were all returned back to theorganisation and this had caused a lot of trouble tot the top brands. Thisoccurred because the wrong software was installed into the motor vehicles. Athird weakness that Volkswagen face is that their parent brands can bestrengthened but have not decided to do anything about it as they spend toomany dollars on advertising to build on brands such as, Bentley, Porsche,Lamborghini and other brands but Volkswagen need to stop putting as much moneyinto advertising for those brands and put their attention toward the not sosuccessful brands such as Passat and beetle.Opportunities that Volkswagen face is that just like othercar brands, the purchase of automobiles are increasing year after year as theyare a necessity worldwide plus on top of that there are various schemeslaunched by these brands that allow loan options and finance options that areavailable to the consumers which means more people would be able to affordcars. Another opportunity that Volkswagen face is that they have thepossibility to expand their busy to emerging countries that require automobilesbut Volkswagen would have to realise that they would need to localise theirproducts and change the for the local requirement they need.
A thirdopportunity that Volkswagen have is that that should make more modern andinnovative designs for their upcoming automobiles because, consumers are alwaysattracted to new designs so the brand can stay alive and bring in some newcustomers as well. To add on to that point, Volkswagen should also considerhybrid cars / fuel efficient cars and / auto driving cars because as of now,these 3 inventions are what all car brands should be aiming toward as these arethe future of driving and whoever perfects these first will have a massive leadin the market and that’ll put the brand in front of all of the other brands fora long time. With also considering with the amount of fossil fuel left on theplanet, people are going to have to start turning to fuel efficient cars soonso hybrid cars will be a major factor in the market. Threats that Volkswagen face is that their brand reputationhas been badly damaged due to the emission scandal. Because of the emissionscandal, a majority of people lost their trust in Volkswagen vehicles soVolkswagen are having to spend a lot of money into building up their brand sosomething like this hopefully never happens again. Another threat that theyface is that their competition is only increasing so there is no time forrelaxing for Volkswagen, as they have to always strive to be the best brand. Athird threat that they face is that of the different government regulations indifferent countries and this is a major problem because all government favourlocal car manufactures over international car manufactures because they want tokeep the profits within the county as the countries design policies which arefavoured to local car manufactures and this affects the international carmanufacturers as they have to make changes that suit the policy.
Finally, athreat that Volkswagen face is the emission issue as changing emission lawswould damage the brand as whenever the law changes it will go under the radarand past experiences show us that Volkswagen have taken illegal actions insteadof following the law of emission standard. Due to this, it will not besupported by the government agencies in the future and it will be inspectedstrictly. This will increase the cost factor for the brand if it wants to alignits engines to the latest emission standards. PESTLE analysis: A political factor is that of the emission scandal becausethe problem relates