Strengths: Volkswagen has one of the broadest brand portfolios among automakers, including Audi, Bentley, Bugatti, Lamborghini Porsche, SEAT and Škoda, selling more than 10 million cars per year. . Allow the company to diversify into automotive industry markets. For example, they play a huge role in the truck and bus industry under Scania. This diversification has allowed them to become one of the largest companies in the world. The synergy between all Volkswagen brands appeals to both ends of the spectrum, from luxury to family cars, creating a huge target market, catering to all customer needs. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the Original Essay VW operates in every corner of the world with a strong global presence, 70 production plants in 150 countries and 350,000 employees worldwide. Including joint ventures with local Chinese automakers entering the world's largest market with 1.4 billion potential customers, if VW dominated the Chinese market they would cement their place at the top of the auto industry. In addition, another strong point is that VW is very popular: 26,600 new cars are produced in a single day to meet current global demand. 57th highest ranked brand in the world even after the emissions scandal (2016). (Was ranked 18th in 2015) This is helped by the fact that VW has managed its operations well - a good supply chain and links with hundreds of VW dealers in the UK alone. Volkswagen cars have the highest gross sales in the United States and Germany, more than any other VW brand. After pumping profits into research and development, VW was able to produce high-performance, hybrid and electric cars. For example, the new Golf GTE is one of VW's newest models. Offering an electric alternative could entice anti-emissions consumers to buy a car, increasing VW's market share. VW is one of the oldest car manufacturers, which will allow it to reach more of the general public. The more people who know about VW, the more they will think about it when looking to buy a new car. Automakers can rely on word of mouth for many car sales when people say that a car's reliability is what most people want. VW must have good word of mouth, simply because it has been established for so long. Brand recognition, Excellent advertising and marketing across TVCs, print media, online advertisements, billboards, etc. Audi is the most successful brand in the VW Group with an estimated value of $7 billion. Weaknesses: Volkswagen's biggest weakness recently was the 2015 emissions scandal, the negative publicity surrounding it has deeply affected the main umbrella brand with almost 5 million cars returned to the organization. This resulted in the weakening of a good brand reputation that took years of good services to build. If there is a significant loss of loyalty, customers will stay with VW when it comes to purchasing their next car. Finally, trust was broken, in part because this decision to install the wrong software came from the company's senior management. However, it can be rebuilt and they have paid fines for the damage caused. Additionally, statistics tell us that sales have not been very effective, suggesting that the majority of consumers are not bothered by theemissions when they buy a car. They have the highest recall rate in the US of any other automaker and, even worse, their market share in the US is very low compared to Europe. In the past there must have been manufacturing or quality control issues. An easily corrected mistake, but one that proved costly in the long run, resulting in VW cars not being as popular as they should be in the United States. Another problem for Volkswagen is that competition is eating into its margins. There are many competing brands entering the market and price competition is formidable. As a result, this competition benefits customers but negatively affects the brand. In India, for example, the brand had to significantly lower its prices to promote acceptance. As a result, many margins were lost due to competition. The positioning of the Volkswagen brand is quite weak in India. Maruti and Hyundai have excellent overall turnover and Volkswagen is not able to penetrate against Maruti. Volkswagen spends a lot of money on advertising to create a brand for Audi, Bentley, Porsche and other brands that bring in the most money. Volkswagen itself needs to spend to create more brand equity for the parent brand – Volkswagen. There are hand-selected cars, like the Passat or the Beetle, that are all the rage under the Volkswagen brand. But the brand is not making much noise for these models, which is the market requirement. A reboot of new models for these cars would significantly increase their popularity. Finally, most of VW's high-performance cars are not environmentally friendly, for example Bugatti and Lamborghini, two of the fastest and most expensive cars in the world. Opportunities: Fuel is expected to increase in the near future, leading to increased demand and creating a larger market for hybrid vehicles. and electric cars, of which Volkswagen currently has only a small share. This can be an opportunity to invest heavily in the research and development of electric cars to increase their presence in the electric car market. In addition to investing in the electric car market, there is an opportunity to invest in the autonomous car market. A market not yet explored by the majority of automobile manufacturers, with few or very few fully autonomous cars. Volkswagen has the size and power to become the new global leader in providing driverless cars, they just need to take off in terms of demand. like electric cars did. A well-respected brand like Volkswagen has the potential to offer driverless cars at an affordable price. There is also the opportunity to focus on significantly improving sustainability policies to address the damaged brand reputation and retain the trust the public once had in the Volkswagen brand. Additionally, as purchasing power increases globally, cars are no longer considered a luxury item but rather a necessity. Increase total demand for cars. Even if you can't afford to buy a car, there are now financing and overtime payment options, meaning more and more people have access to the sports cars that VW offers. Threats: The reputation of the VW brand has been seriously affected, one of the main threats to Volkswagen is damaging the brand's reputation due to the emissions scandal. More than 5 million cars had to be recalled, including Audi, Volkswagen, SEAT and..