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SWOT of the Volkswagen Brand


            SWOT analysis is an acronym that stands for Strength, Weaknesses, Opportunities, and Threats. Strengths and weaknesses are internal, and opportunities and threats are external (Manktelow, n.d.). This analysis I considered more of a tool than give felt assertions rather than measures (Ritson, 2013). In this paper, we are going to study SWOT of the Volkswagen brand. Firstly, by identifying the main changed occurred from 2013 up to today. Then, will discuss the strengths of the company during the same period. Later, what will explain what the weakness of the company is. Also, how have the opportunities evolved? And finally, what is considered as threats during the period.
Main Changes Occurred
            The main three changed that occurred to the Volkswagen brand are: -
Negative Publicity
In 2015, Volkswagen caught installing software into its diesel vehicles so that to manipulate emission levels to pass testing. This scandal hit the company’s reputation hard worldwide (Jurevicius, 2016).
New “TOGETHER – 2025” strategy
            Another change occurrence is the new together 2025 strategy. This strategy aims at making Volkswagen a pioneer in the electric and self-driving cars (Brown, 2016). Moreover, increasing research and development in combustion engines for better emission and thus environment-friendly vehicles. Another goal of this strategy is to regain trust in the brand after the diesel emissions scandal.
Hit the Highest Recall Rate in the U.S. Market
            Coming to the third most significant occurrence of the company, Volkswagen hit the highest recall rate record in the U.S market reaching the rate of 1805 vehicles per 1000 recall (iSeeCars.com as cited in Jurevicius, 2016). Which is an indicator of unreliability.
Strengths Evolving
            Considering the strength of the company during 2013 till now, we can pinpoint to how they tried to convert their most prominent threats into an opportunity by forming the new together strategy for 2025. The brand got the assets and the brains required to reach the targets It wants. They have the most diversify brands portfolio, they have a synergy between them, and this is considered one of the most strength of the brand that keeps evolving.
Weaknesses of the Company
The weakness of the company during this period is the negative publicity that weakened the whole Volkswagen brand. It gave terrible impressions to customers about what are they buying a car with an unreliable manufacturer (Jurevicius, 2016).
Opportunities Evolving
Acquiring skills and competencies through acquisitions. The company is famous for acquiring other car manufacturers at a high pace. Giving its history in this and the cash resources it possesses, it can quickly acquire new company’s startups with advanced battery technology to reach its New “TOGETHER – 2025” strategy.
Threats to the Company
One of the biggest threats to the company is the further fines and damages that will have to be paid from its emission scandal. (Jurevicius, 2016) Other authorities worldwide are testing the company’s vehicles to convict the company of cheating, and the company will have to pay billions as fines and damage during the next year of the scandal.
Solutions and Strategies
            A recommended solution for this brand is to apologize to its customer and extend its warranty to regain customers love and trust. Another strategy to implement besides it current one is to build very reliable cars that do not break easily so highest recall rate can be of the past. Volkswagen has the benefit of being German. And German cars have a reputation of being reliable so it can build upon that and restructure its vehicles to last longer even if that means to lower profits on spare parts sales, but it is for the sake of rebuilding the brand again.
Conclusion
In conclusion, the company has more strength than its weaknesses and more opportunities than its threats if it chooses to seize them well. All companies face problems from time to time. But how to act during this time and to formulate an optimal strategy is what make or breaks a company. The Volkswagen brand has a lot in its arsenal to use and being successful again. Solutions are recommended to maintain as the first mass produces vehicles in the world.



References
Brown, B. (2016, June 22). Integrity, trust and future tech developments on VW annual meeting agenda. Retrieved November 21, 2018, from https://www.digitaltrends.com/cars/vw-group-annual-meeting-together-2025/
Jurevicius, O. (2016, December 10). SWOT analysis of Volkswagen. Retrieved November 21, 2018, from https://www.strategicmanagementinsight.com/swot-analyses/volkswagen-swot-analysis.html
Manktelow, J. (n.d.). SWOT Analysis – Discover New Opportunities, Manage and Eliminate Threats. Retrieved November 21, 2018, from https://www.mindtools.com/pages/article/newTMC_05.htm
Ritson, N. (2013). Strategic Management. Bookboon.com. Retrieved from https://my.uopeople.edu/pluginfile.php/358620/mod_page/content/9/BUS5116Ritson.pdf





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