Volkswagen. Automotive industry

Today we would like to present you our Case about Volkswagen and what is the impact of globalization. Now we going across our agenda, first of all we talk about the current situation, then in going to the history, explain the strategy after than going trough main points. And at the end ist the conclusion.

Current Situation In 2012 the automotive market has grown and in 2013 will be a record year. That growth comes mainly from the booming Chinese and Indian market. Since 2000 the car market has increased twentyfold - a trend that continue because in China have 1,000 people only 44 cars in Germany there are 530 cars. In 2012 the market share of German car manufacturer in the world is stable around 20 percent, but the home production has declined, because the production there is expensive.

The market in Europe has reached a "Peak Car" as similar as "Peak Oil“. As a result, the french and italian manufacturers close their plants. The globalization have many factors, that are important for car manufactures, as the regulations and requirements , the demand and existence.

History As 1937 was founded, nobody thought then that it will be one of the largest and leading companies worldwide. The internationalisation of Volkswagen process began in 1952. With companies in Canada und Brasil because of low labour costs. Later in America and South Africa and now around the world. 1956 its differentiation strategy with opening the factory of Transporter in Germany.)

Strategy After low years between 2000 -2006 Volkswagen sets a strategy “Strategy 2018” which is defined in business terms and it is an organization's strategic guide which depends on aims of company and global situation. As you see on the graphs there are three aims that already reached. For example Leader in Innovation and producing in environmental cars On next slide you can see that Volkswagen has divided its strategy in the short term and medium term. But in the long run Volkswagen would achieve the major aim of the strategy in 2018. Therefore the company has the flexibility to change the short terms and middle terms quickly to circumstances and create the sustainable value.