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Volkswagen (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Volkswagen

Volkswagen is a manufacturer of passenger and commercial vehicles. The group markets its cars under the following brands: Volkswagen passenger cars, Audi, Skoda, SEAT, Bentley, Bugatti, Lamborghini, Scania, and Volkswagen commercial vehicles. The group is headquartered in Wolfsburg, Germany and employs 369,928 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong brand portfolio
  • Strong focus on research and development
  • Robust production capabilities

Weaknesses

  • Sluggish performance of Volkswagen in few geographic areas
  • Relatively low employee productivity
  • Poor cash flows

External

Opportunities

  • Accelerating global demand for buses
  • Increasing demand for hybrid electric vehicles
  • Growth potential in India and China

Threats

  • Global recession in 2009
  • Weakening of global automotive industry
  • Environmental protection regulations
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"Volkswagen (SWOT Analysis)";