Volkswagen Emission Scandal Company Harvard Case Solution & Analysis

Volkswagen Emission Scandal Company Case Solution

1.Current company position

Competitive position of Volkswagen

Competitive position of Volkswagen is important for the business to grow. The car manufacturer has been in the car manufacturing industry for many years, but it has never lost its competitive edge. It has always remained ahead of its competitors in terms of products and technology. This is what the management team at Volkswagen takes into account when making business decisions.

According to the estimates, Volkswagen sold more than five million cars in the first half of this year, which is quite a remarkable number. During this period, it had established itself as the most popular car brand in the world. Volkswagen maintains that it has improved the design, the quality and the features of the cars despite of being an independent company. In fact, it is not uncommon to see people lining up for a test drive of some of the latest models. One of the factors that has contributed to the success of the company lies in its ability to remain in competition with the other manufacturers. There have also been other significant technological developments in recent years that have helped the company in retaining its leadership position in the industry.

The company does not focus on a single aspect but looks at all the aspects that will help it in achieve its targets. It has also made efforts to reduce the costs and to maximize the profitability. A major contribution to its success has been the decision to introduce diesel into its cars. Diesel has become an important part of the German car market. As a result, competition between various manufacturers in this segment has become more intense. Volkswagen has maintained its competitive position in this segment.

The company does not engage in any unethical practices like cheating on the customers regarding the mileage percentage or the engine speed. It has strictly adhered to the norms and regulations laid down by the legal authorities. The aim is to maintain the trust of the customers so that they will come back to the company’s showrooms again. Since it has been a century now, the car manufacturing industry has changed drastically. Technological changes and improvements have resulted in leaps and bounds in the field and Volkswagen has also experienced such a change - and attained stupendous success despite of unfavorable circumstances prevailing in the industry in the recent past.

As a manufacturer; Volkswagen has a very strong identity. It is a family-operated business that sticks to its values and traditions. Many of the employees belong to the middle class segment and it has a very broad base of customers - which in turn results in massive sales figures. It has managed to remain relevant in an ever-changing car industry and has emerged as a leader - all thanks to the excellent performance and the exemplary leadership shown by its top management team.

One should not forget the importance of the new technologies that have come up to help the car manufacturers to remain relevant. The most important among these technologies is the Smart Start system. This new technology makes the car switch on its own from inside, without the need to press the buttons and fiddling with the switches or moving the knobs. This was one of the most important innovations that Volkswagen has introduced and its implementation has led to significant changes in the way customers interact with the cars - and this ultimately leads to tremendous advantages for the company.

However, if you look at the competition; you will find that the company is doing very well and is gaining ground in every sector. It has very well-established itself as a brand in the car manufacturing industry. The reason behind this is that the company has very strong marketing strategy, great advertising and promotion campaigns. All this helps in ensuring that its share of the car sales pie is successfully maintained. This is what the company's market dominance is all about.

Volkswagen would have to strive more in order to maintain its competitive position in the auto sales segment. It must invest in research and innovation. It should also make sure to invest in creating cutting-edge technologies. And lastly, it should always strive to stay ahead of its competitors. Only then, the company can manage to retain its competitive position. Keeping in mind all these factors; we can safely conclude that Volkswagen has a lot of work in store if it wants to retain the competitive position which it currently has, in future.

Volkswagen business strategy

The corporate management of Volkswagen had put together a very sound plan after they had bought the car manufacturing company. This plan was a combination of European and American elements. Volkswagen is a very big brand in Germany and the United States. There are many areas that are not covered in this article, but this overview will at least give you an idea of what the plan covers. You can learn more about the components of the strategy in other articles.For the purpose of the present article; we will concentrate on the Brand Power. This is basically the ability of a brand to create a positive perception in the mind of the consumers regarding the products and the company. In other words, it is the feeling which customers have regarding that the brand and its products. This article talks about how that perception should be created in order to create a win-win situation for the company and the brand.

In recent years, the German car makers have been very successful in their quest for being number one in the world market. There are many reasons behind this success. One of those reasons has been the consistent model quality and innovation during the production process. Every car model is an evolution of its previous model. As long as we keep on pointing out the quality and the innovative steps taken by the VW brand, no one will contradict us. The strategies that they implemented continues to help them in staying number one.....................

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