Volkswagen AG (Volkswagen or “the
group”) is one of the world leading automobile manufacturer and the world
largest carmaker company in Europe, which are under the commitment of clients
and society to supply top quality products that are safe and ecologically perfect,
so it’s called people’s cars too. In 2009 the group increased the number of
vehicles delivered to the costumers to 6.336 million corresponding to
11.3%share of the world passenger car market. Volkswagen is the parent company
of Volkswagen group with its headquarter in Germany manufactures the automobile
and commercial vehicles and active in other field of business as well such as
manufacturing large-bore diesel engines for marine and stationary application,
turbo charger, turbo machinery etc. The group of Volkswagen operated 119
production plants in 20 European countries and 11 American, Asian and African
countries till 2015.volkswagen sells its vehicles in more than 153 countries
with the brands of Audi,SEAT,SKODA,Bugati,Lamborghini,Porsche,Ducati,Scania,Bentley
and Volkswagen commercial vehicles. (volkswagen group homepage, 2010)
Each brand has its own characters and workings
as an in development body on the market and the product range is extend from
low range to luxury class vehicles.
The board of management of Volkswagen AG
involves 5 individuals and each board member is charge of at least one of the
inside function of Volkswagen group. The main aim of this group is to offer
attractive, safe, environmentally sound vehicles, which are alert on gradually intense
markets and signify the worldwide benchmark in their separate classes.
structure of VW
Volkswagen is the multi brand
groups of automotive industry. The group operates four business segments:
passenger car, commercial vehicles, financial service, and power engineering.
The passenger car: engaged in the
development of vehicles and engines, production and sell of passenger car, and
genuine parts business. The group sells vehicles under different brands
including Volkswagen passenger.
The commercial vehicle: offers
buses, pick-ups and heavy trucks. It also operates Volkswagen commercial
vehicles Scania and MAN brand. This segment specially operates for production
and sell of light commercial vehicles, trucks and buses.
Financial services: offers for the dealers and
customer financing, leasing, banking and insurance services. These services
coordinate the global financial service.
The power engineering: engaged in the
production and development of large bore diesel engines, turbo compressors.
Chemical reactor system and the production of the gear units.
Each brand of Volkswagen group is
managed by board of management which ensure everyone’s personal expansion and
its business operation. The board of management of Volkswagen gives the targets
and requirements which must has to be fulfilled by each individual company in
the group which helps to achieve the target on time to maintain the brand’s
specific characteristics. Volkswagen strategic management is largely conducted
at group level by various committees which are composed of relevant central
department and equivalent functions in the company’s business areas. This focus
on the planning, investment, liquidity and foreign currency and management
issue. (marketLine, 2015)
The main mission and vision of the Volkswagen
group is to offer an attractive, safe and environmentally sound vehicles which
can compete its competitors in the market for its respective brand. This group
is intends to became the most successful and fascinating automaker in the
world. Volkswagen is a highly innovative company and this will continue to
remain the case in the future. To achieve this mission Volkswagen create the
strategy 2018. (volkswagen strategy 2018, 2009)
Technological changes are always influence by the customers needs
and ,business model and competitors in the market so Volkswagen also come up
with the new strategy of TOGETHER –
the group has lunched the biggest change process in its history for the
evolution into a global automobile industry,which builds on the successful
strategy 2018.this group wants to make a key role of shaping not only today’s
mobility but tomorrow ‘s as well that’s the reason they create this name
“TOGETHER”. The future plan of Volkswagen is to be more efficient, innovative,
and customer-oriented and more for generating profitable growth. In addition
they look forward to inspire the costumers, meeting their diverse needs with
the set of strong brand. (Volkswagen
Group Annual Report 2016, 2016)
TOGETHER –CHANGE 2025 creates the
framework and work for evolution of the group with the strong brand, its
production site, skilled labor and dedicated workforce. The philosophy of this
group is to continuous improvement in order to provide highest quality product
at a reasonable price to the costumers, (strategy and vision/volkswagen)responsible for
surroundings’ employees and costumers,labour relation card for developing
dialogue and representative of employees who can consult and can take the part
of decision making.
strategy as a competitive advantages
Competitive advantage is known for
the strategic advantage which a company can provide their product and service
in market for less price with high quality. (DSG Motors: sold more than 3.5
million units).Innovative plans and idea autos are in plan to fulfill future
needs. Self substitutes, brands contend among themselves. . Self substitutes,
Brands contend among themselves.
The three strategies every
organization adapts to get competitive advantage are based on:
The Group Volkswagen has adapted
all these strategies to such a greater extent to achieve competitive advantages
and get an upper hand over its rival companies.
Talking about cost Volkswagen has
range of cars with acceptable prices affordable for every class of people from
expensive luxury and high speed vehicle to an average daily use sedan type like
as Bugatti Veyron ,Porsche Carrere, Skoda, Volkswagen Passat, VW.Jetta as
compared to Toyota, Ford or Mercedes.
Looking at the second strategy
that is Differentiation strategy The Volkswagen group have some the best
top-notch vehicles such as Porsche 911 GT2 RS, Bugatti Chiron, Lamborghini Cars
which an ordinary lower or middle class person can’t afford but they have their
own luxury, class, comfort and standard.
Volkswagen response to keep pace
with this high and fast speed world in technological sector has a structure
that is lean and agile. It also takes responsibility of social and ecological
areas and for employee’s health.
On the other hand Volkswagen know what people
see on their vehicle, comparing between Volkswagen vehicle and other (Volvo, Honda,
Toyota, Hyundai) car Volkswagen is the best option to choose. People can choose
the variety of models; they can have an engine like turbocharged like jetta and
passat owners. You can get a luxury car without the price what it means is for
on the basis of financial service of VW. safety features like front assist, blind
spot monitor, rear traffic Alert ,lane assist, park assist can help to driver
to get their destination safely which u
can get barely in another car. Entertainment wise it comes up with VW cockpit, siriusXM
satellite radio, hand free power life gate apple car play.
VW is one of the most awarded automotive industry which recently award
by 2017 top best safety pick and “best three-Row SUV of 2017” and “best compact
SUV of 2017″from cars.com and one is the
golf family of models was listed as one car and drive magazine’s “10best”for
2018. (VW competitor and advantages)
Strategy development and
VW group had sent a strong signal by
establishing its strategy 2018 .to be a
successful and fascinating
automobile industry there is four core objectives ,VW aim is to
establish intelligent innovations and technologies with high quality in a
sustainable way. After the scandal of 2015 VW comes up with the new strategy
“TOGETHER “with this strategy the focus is to play a leading role in a
continuously changing automotive industry. Strategy 2025 is the result of hard
work of more than 250 experts’ ideas and vision which reveals the group’s
of this strategy is already in the field such as VW has agreed on demanding
targets which is more efficient ramp-ups, reduced working times through higher
plant utilization and improve process .after SUV lunched VW is planning to
expand the global models range from initial 2–19.VW electric offensive is also
proceeding at a rapid pace. The new e-Golf, which has a range of 300km, already
combines everyday practically and customer benefit.
The objectives of being globally
leading automobile industry ,it come up with the idea of fully autonomous
vehicles with self-driving system developed in house by 2021.
VW has started the largest product offensive in its history with the
vision of stabilizing and gaining market shares. More than 10 new models are lunched
in 2017 and out of these 5 were genuine new products and at the end of 2018 7
new SUVs will be lunched.
Volkswagen’s brand plan to be the world market
leader in e-mobility and to sell 1 million electric cars per year. The key
element of this strategy will be I.D family.
VW is stepping in another area of
digitalization where it is lunching the new generation of car-net. (volkswagen
This industry targets on
innovative service for consumers and business, strategic partnership with get
with 50 million customers currently. It also plans to get profit in billion
Volkswagen sustainability means
pursuing economic social and ecological objectives continuously with equal
energy .it is the aim of the Volkswagen to create lasting value, provide good
working condition and conserve resources and environment. The sustainability of
mobility solution depends on many factors such as what costumer want , what is
expected by public , regulatory framework ,quality of the product , technology
and how to meet these requirement. The key concepts of sustainability is to
decarburizing mobility, converging resources over life time, take the social
and ecological responsibility,and job security of the workers.
Volkswagen, the group of Berlin
is representing an exhibition to focus about the DRIVE in FEB 28
2018.the main goal of this exhibition is to demonstrate the leading global car
manufacturer strategy and the concepts of sustainable action and the concept of
‘SEDRIC’ (self driving car) .on that exhibition will offer to visitor first-
hand experience of how future development will unfold, its multimedia feature
,alternative drive system and use of recourses of different type of vehicles.
Volkswagen wants this exhibition to show to visitors who has even little or no
interest about car to provide the idea of sustainable mobility and use of
resources. (volkswagen home page, 2017)
brands different sustainable environment strategy.
V.W. passenger ;
Resource efficient production
For Volkswagen sustainability means
at the same time taking a stab at social
environmental and economic goals,
The VW group have likewise set up a clear
system to keep up with
environmental issues and a forward-looking framework
for dealing with risk managements.
VW group is now setting its root in becoming one of the world’s largest
supplier of sustainable vehicles by initiating the biggest process in its
history “TOGETHER STRATEGY 2025”.Volkswagen group is currently supporting and
funding more than one hundred CSR(corporate
social responsibility) projects all over the world. From human rights to
environmental activities, education, working standard, road-safety, health and
other big issues.
Supply Chain Management is an
approach used to achieve efficient integration of suppliers, manufacturers,
distributors, retailers, and customers. This means that the goods are produced
in the right amount, at the right time, and at the right place to achieve a
minimum cost of the system as well as reach the desired service level. In
short, Supply Chain Management can be defined as the management of information,
goods and services from the earliest suppliers to the latest consumers using an
integration approach with the same goal.
With Volkswagen FAST (Future Automotive Supply Tracks)
With FAST (Future Automotive
Supply Tracks) program VW group of companies reinvent its Cooperation with
supplier. The aim and goal of the FAST (Future Automotive Supply Tracks)
program is to make stronger ties and collaborate strong partners for future endeavors,
organize ventures and make proficient utilization of assets in nearer
collaboration with providers and to shape the change of the Vehicle industry
Here is a list of few of suppliers
for Volkswagen group under the FAST program (F.A.S.T VW
picks 55 strategic supplier, 2016)
FIELD OF COMPETENCE
Communication and M2M Connectivity
The global supplier of Volkswagen group is currently 40,000 partners.
The group business platform “ONE” was developed to make cooperation with these
partners. VW group describe the partnership approach used for the development
of new group business platform for the redesign of the digital procurement
platform, feedback from users , suppliers and related operational division like
finance, production, quality assurance and technical development. The ONE.Konzern
business platform is a dynamic platform that is constantly working to cooperation
between the suppliers and VW group. (volkswagen homepage, 2017)
Although every successful
companies always try to give their best however there is always something
missed which creates challenges for companies.
In the case of VW group this is also gone through some of the obstacles. In
2015 September the EPA (Environmental
Protection Agency found that many of the VW cars being sold in America has a
“defeat device”-or software that could detect when they were being tested. at
that time EPA found 482,000 cars in the US only including Audi A3 and VW models
jetta, Beetle, Golf and Passat.VW admitted that 11 million cars worldwide
including 8 million in Europe fitted with that engine. In November VW again
found “irregularities” in tests to measure Carbon Dioxide emission levels that
could affect about 800,000 cars in Europe.EPA also said that the engines had
computer software that could sense test scenarios by monitoring speed, engine function
and air pressure. After did the entire test as result the engines emitted
nitrogen oxide pollutants up to 40 times above what is allowed in US. After all
these happened the current Chief
executive of VW said “VW broken the
trust of our customers and the public” and resigned and the new Director was appointed.
After all this happen VW recalling
million of cars from worldwide and compensate the loss €6.7bn to cover
costs. (BBC, 10Dec
after going through these obstacles and came over it , today VW group is the world largest automotive
industry and that can only happen because of its operation management supply
chain and sustainability.