If you would rather look at this in word, I have a attached a copy below.
Volkswagen Group, also known as Volkswagen AG, has been around for 83 years with their core values as a company being recognized every year. They were founded by the German government to produce a mass number of low-priced cars. To this day Volkswagen is one of the most recognized automobiles globally. The group is made up of its 12 brands in which they have large controlling stakes. From Volkswagen, Skoda, and Seat to Porsche, Audi, Bentley, Lamborghini, Bugatti and Ducati along with Man, Scania and Volkswagen commercial vehicles, the group has a large portfolio of vehicles to choose from. Being a company that is affordable for millions of individuals while having premium options has helped them gain great recognition around the world.
Although their 2015 emissions scandal caused a recall on all diesel vehicles from 2009-2015 and affected the image of the brand along with their reputation, it did not stop them as they went back into the board room to focus on new priorities before shifting gear and proceeding. Even though they had critical restraints, the following year in 2016, their sales jumped and so did company revenue. Volkswagen Group was able to get a rise of $217.3 billion euros in sales revenue along with other critical successes which proved the brands strong position in the global market. Since then, the brand is now going in a new direction by redefining its strategy which will lead for quicker and more impressive growth. We are able to understand their business strategy better through their mission and vision statements as they are a crucial part of what the brand stands for as well as their future plans to achieve these goals.
Volkswagen Group’s mission statement is:
We offer tailor-made mobility solutions to our customers.
We serve our customers’ diverse needs with a portfolio of strong brands.
We assume responsibility regarding the environment, safety, and social issues.
We act with integrity and build on reliability, quality, and passion as the foundation of our work.
From Volkswagen Group’s mission statement, we can attribute it as tailored towards their customers as that is their main focus. If we break apart each line, we are able to understand that the first line focuses on customer convenience, the second line focuses on diverse needs, and the third- and fourth line focus on accountability, ethics, and passion.
Volkswagen’s focus is on the purpose to serve the global society with responsibility and sustainability, their focus on accountability and sustainability has grown immensely since the diesel scandal in 2015. Their mission statement mentions the large product portfolio available, its ability to make change, and increased focus on sustainability and driver safety, while ethics, and reliability are rather more important to focus areas for its business strategy. Their mission statement does not include market size, market position or employees even though they are just as important for their business strategy and could be included as a part of the mission statement.
Volkswagen Group’s vision statement is:
We are a globally leading provider of sustainable mobility.
Shaping mobility - for generations to come.”
When looking at Volkswagen Group’s vision statement, it can be understood to be very plane and generic when compared to its mission statement. The vision statement is not discussed in great detail in regard to their focus for the future, the only detail we do receive from the vision statement is that Volkswagen Group is focused on being a provider of sustainable automobiles. Sustainability is not simply a trend but something we can see all automotive companies attempting to achieve. With each automotive company’s focus to have more vehicles that are either electric or less fuel consuming alternatives, as high levels of emissions from vehicles have damaged our environment throughout the years. However, when understanding a vision statement, we can gain insight on the future development of a brand and understand where they have set their goal to be in the near future. While we can easily understand that the brand is trying to build a more promising and sufficient product when it comes to sustainability and driver safety, there are other factors that influence the upcoming products. These are factors like market expansion and financial position to which are needed within the vision statement or a brand. Currently, there is not clear statement made regarding what kind of financial future the brand wishes to achieve and where it hopes to attempt with regards to market competition.
Volkswagen Group social value:
The values that Volkswagen Group considers within their brand are humanity, public spirit, and responsibility. Volkswagen Group promotes sound and balanced social development, in Germany as well as in their other international locations. As a brand they support the arts and culture, education, science, health, and sport in several projects. These projects help allow for CSR to be a learning platform for all brands and in all of the Company’s regions. One example being their cooperation with the German Red Cross (DRK) and their efforts to help refugees.
Along with their partnership, Volkswagen Group helps the German Red Cross find individuals who are willing to volunteer their time. This goal is central to the partnership, as it helps strengthen the Red Cross’s rescue service.
With the slogan “Helping Together”, Volkswagen Group is becoming a part of the task of receiving and integrating refugees who come to Europe and Germany. This is successfully accomplished through a range of projects, first being immediate aid in the initial accommodation facilities to local integration and education projects and secondly providing vehicles and non-monetary resources. There has also been a newly created Internet platform which is used as a database for volunteers as well as a source of information to assist volunteer helpers. This is done because they are convinced that with their help, all brands a part of Volkswagen Group along with their locations, and employees can not only make a humanitarian contribution, but contribute to the structure of society.
Volkswagen Groups established cooperation and a consultancy agreement with the German Nature and Biodiversity Conservation Union (NABU) which expired on December 31, 2015 but was immediately renewed after Volkswagen Group had worked on their diesel issue and concerns.
With all being said Volkswagen Group is continuing to successfully stand by their slogan by being a part of the Together4Integrity program, by implementing the Volkswagen Group Essentials worldwide. These essentials are quoted as, “We take on responsibility for the environment and society. We are honest and speak up when something is wrong. We break new ground. We live diversity. We are proud of the work we do. We not me. We keep our word.”
Volkswagen Group believes that sustainability means to pursue economic, social and ecological objectives simultaneously, while having equal energy. It is their goal to have values that last and offer excellent working conditions that support resources and the environment. When it comes to the concern with emissions, they acknowledge that they have failed to live up to their own standards in multiple areas. The differences of management involving emissions tests contradict everything that the brand stands for. They have promised to do everything they can to prevent this concern from happening again and are committed in every way possible to gain the publics trust again. With their sustainability concept they want to ensure others that opportunities and risks associated with their environmental, social and governance actives are identified as early as possible at every stage of the value of creation process. With maintaining their goal, they are determined that their corporate social responsibility (CSR) activities will have a long-term positive impact on the Company’s value and reputation.
Customer Segments:
Volkswagen Group has a wide range of vehicles available that tailor to each individual’s needs. The group focuses on offering passenger cars and light commercial vehicles, commercial vehicles, electric vehicles as well as financial services and power engineering to help achieve the need of all. Their cliental is focused primarily on those ages 18 or older for all genders, although it is not unlikely to see teens driving Volkswagens in North America or their other more affordable brands such as ŠKODA or SEAT across Europe. For example, my first vehicle was a Volkswagen and my cousin in Poland drives
a SEAT.
Volkswagen Group also offers a loyalty program which is able to be used at any of their 12 owned vehicle companies. This program has been compared against its competitors for a number of years as it offers a slight discount when making a purchase. Due to its clientele the Group continues to hold its top spot in core European markets as far as loyalty with its considerable margin over the competition.
Customer Relationships:
Volkswagen Group strives to have a stable relationship with their customers by having outstanding customer service and assistance when needed with their certified mechanics team. They offer a wide variety of unique sustainable vehicles to choose from, with their wide range of 12 brands they can offer services to individuals in search of your normal consumer vehicles, to higher end luxury vehicles all the way up to commercial vehicle. With countless options they allow for there to be personized options that meet each customer’s needs. Volkswagen Group has been able to establish a long-term relationship with each of its customers through being a high-end retail store that puts their customers first. While being a dedicated sales team that offers an exclusive shopping experience they also have given back to the community through their partnership with German Red Cross, which also has brought awareness to their brand.
Value Proposition:
With Volkswagen Groups “TOGETHER – Strategy 2025” future program, they are paving the way for the biggest change process in VW Groups history with the modification of being one of the best carmakers to become a global leading provider of sustainable mobility. To achieve this, the Group will be transforming its automotive core business, and will be launching a 30-plus fully electric cars by 2025 along with other things, as well as expanding battery technology and independent driving as new core capabilities for their products. VW Group is recognized as one of the world’s top automobile manufacturers and as well as one of the largest vehicle producers in Europe. They have operations in over 150 countries, with 125 production facilities located across 31 different countries. VW Group has a wide range of products to which satisfy each of their customer with high end brands being available for different types of customers along with electric vehicles.
Key Activities:
Volkswagen Group’s key activities focus primarily on manufacturing vehicles, commercial vehicles, motorcycles, engines, and different types of machines/vehicle components. They are able to do this through millions invested into research and development which leads to more innovation, production, and distribution streams which then lead to sales. After sales are completed, services are provided to offer the ultimate quality assurance experience.
One of the primary focuses of Volkswagen Group for the future is the technological advancement of electric cars and autonomous drive, along with a wide range of financial services, including dealer and customer financing, leasing, banking, insurance activities and fleet management.
Key Partners:
As previously mentioned, Volkswagen Group is made up of 12 brands from seven European countries. These brands can be identified as: Volkswagen, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and Man. VW Group also has over 340 secondary companies and are one of the major automotive component suppliers across the world. Key partnership can be identified as the partnership of Volkswagen Group and Ford who have signed an agreement for joint projects to take place involving commercial vehicles, autonomous technology and electric vehicles (EVS). This agreement has brought hope for the company’s that as early as 2021 they will see a growth in strength within the commercial-vehicles business. VW Group is also planning a collaboration with Microsoft, where they will build a cloud-based automated-driving platform also known as an ADP, which will deliver technology on a global scale. This collaboration will help with the development of automated driving functions within the cars of VW Group. By using the development process on Microsoft Azure, they hope to bring automated driving solutions to their vehicles sooner. When looking at financial organization partners, the key companies that they are affiliated with are Volkswagen Financial Services AG and their affiliated companies’ financial services companies in the United States and Canada, with the exception of the European based brands. Lastly VW Groups key partnerships also relate to their stakeholders. These can be identified as they customers, employees, investors such as individuals who have shares in the company, suppliers and vendors, communities and lastly the governments and non-profit organizations.
Channels:
Volkswagen Group’s distribution channels are focused primarily on network of dealerships, offices and show rooms along with third party channels. They are able to be recognized through various advertisements such as events, commercials, billboards, social media and websites/online marketing which is most likely to reach the general public as everyone is on some sort of social media or electronic device on their down time.
Key Resources:
Understanding four key resources we can structure the ways in which these influence Volkswagen Group. We can begin by looking at the physical resources, which we can understand to be the company’s locations and products/services. VW Group has 125 production plants and over 340 different vehicle models with several different distribution networks. They are organization made up of over 670, 000 employees covering their human resources. This includes sale associates, mechanics, financial workers, managers, etc. The intellectual resources of the company can be understood to be the research and development that is put into the process of the making of the vehicles as well as the technological advancements and intellectual property. Lastly, we have the financial resources which can be noted to be the accountants, customers, partnerships and all that influences the revenue of the company.
Cost Structure:
Just like any company there will always be expenses that take away from profit. Volkswagen Group deals with annual expenses which can be understood to be common within their industry. These expenses are things such as economies of scale, manufacturing, the interior of the vehicles such as fabric and leather, auto parts, innovation/experimentation, distribution, as well as research and development. When looking at any organization or business expense you also have to consider all members of your team and the expense to have them. This reflects on employee bonuses, employee salaries, compensation plans and the overall taxes.
Revenue Streams:
Volkswagen Group offers several services such as their financial service fees that contribute to their revenue. From brand new and used cars that drive off their lot daily to repairs that are done by mechanics within their shops they generate a high revenue. They have services offered for after sale care, such as engine sales, repairs, spare parts/part replacements which demonstrates their ongoing customer support. They also offer vehicle maintenance which includes oil changes, tire changes and day to day services. VW Group generates most of their revenue from their Volkswagen cars while still generating revenue from their 11 other brands. As well as they have sales with end users and third parties.
SWOT Analysis:
Strategic Weakness:
As we have analyzed our SWOT analysis, it became evident that Volkswagen Group did not respond very well to the pandemic. The Group lost an immense amount of money in the billions as well as having to lay off employees due to Covid-19 and the global recession. Along with the recession and the negative media against Volkswagen due to the 2015 diesel scandal, fuel costs are increasing and government regulations towards fuel emission vehicles are as well. A good option for Volkswagen Group would be to focus on expanding towards emerging markets such as the Middle East, Asia, Africa and Latin America which would also allow them to have more production plants and research facilities that would speed up their plans of producing low emission or electric vehicles with autonomous technology.
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