Discussing the abillities of VW to be sucessfull in the US by either producing their or importing from other subsidies.
Table of Contents
- 1 Introduction
- 2 Information About the Company – Internal Factors
- 2.1 Corporate Goals and Objectives
- 2.2 Corporate Strengths and Weaknesses
- 3 Information About the Product
- 4 Information About the Target Country – External Factors
- 4.1 Target Country Market Factors
- 4.2 Target Country Environmental Factors
- 4.2.1 Political Environment
- 4.2.2 Economic Environment
- 4.2.3 Socio-Cultural Environment
- 4.3 Target Country Production Factors
- 5 Description of the Operation Modes
- 5.1 Joint Venture (JV)
- 5.2 Wholly Owned Subsidiaries (WOS)
- 5.2.1 Acquisition
- 5.2.2 Greenfield
- 6 Analysis of the Suitability of the Operation Modes
- 6.1 Joint Venture (JV)
- 6.2 Wholly Owned Subsidiaries (WOS)
- 6.2.1 Acquisition
- 6.2.2 Greenfield
Objectives and Key Themes
The main objective of this report is to analyze Volkswagen AG's production strategies for the US market, specifically focusing on their new manufacturing center in Chattanooga, Tennessee. The report examines the company's internal strengths and weaknesses, external market factors, and the suitability of different operation modes (joint ventures and wholly owned subsidiaries) for market entry.
- Volkswagen's market entry strategy into the US market.
- Analysis of internal factors influencing Volkswagen's success in the US.
- Evaluation of external factors (market, political, economic, socio-cultural) impacting operations.
- Comparison of different operation modes (Joint Venture vs. Wholly Owned Subsidiary).
- Assessment of the suitability of chosen operation modes for Volkswagen's goals.
Chapter Summaries
1 Introduction: This chapter introduces Volkswagen's challenges in the US market, highlighting a significant sales decline despite being the world's third-largest car manufacturer. It emphasizes Volkswagen's new manufacturing center in Chattanooga, Tennessee, as a key initiative to increase market share and overcome previous limitations. The chapter frames Volkswagen's actions in Chattanooga as a new market entry strategy, driven by the desire to tailor vehicles specifically for the US market and capitalize on the opportunities presented by the economic downturn. The significant investment underscores the company's long-term commitment to the US market and its belief in future market recovery.
2 Information About the Company – Internal Factors: This section delves into Volkswagen's internal capabilities and limitations. It details the company's goals, including a significant increase in US sales by 2018, emphasizing the Chattanooga plant as central to this objective. The analysis covers Volkswagen's strengths, such as a robust financial position and brand diversification, along with weaknesses like lower overall quality compared to competitors and a need to enhance its brand image in the US. The chapter also highlights the potential advantage of recruiting skilled labor from a nearby competitor that is downsizing, offering an opportunity for cost-effective workforce acquisition.
4 Information About the Target Country – External Factors: This chapter provides a comprehensive overview of the external environment in the US market. It analyzes market factors relevant to the automotive industry and the environmental factors impacting Volkswagen's operations. This includes a deep dive into the political, economic, and socio-cultural aspects of the US, offering context for understanding market opportunities and challenges. This contextual background sets the stage for the subsequent analysis of different entry modes, providing crucial insights into the target market’s unique characteristics.
5 Description of the Operation Modes: This section thoroughly describes the different market entry modes being considered by Volkswagen: joint ventures and wholly owned subsidiaries (including acquisition and greenfield investment). It lays out the characteristics and implications of each mode, providing a foundation for the following analysis of their suitability for Volkswagen's circumstances. Each mode's potential advantages and disadvantages are explored, setting the scene for the comparative analysis in the next chapter. This chapter is crucial in providing a framework for understanding the different approaches Volkswagen could take to achieve its goals.
Keywords
Volkswagen AG, US market entry, production strategies, Chattanooga plant, market share, economic crisis, operation modes, joint venture, wholly owned subsidiary, acquisition, greenfield investment, corporate goals, internal factors, external factors, market analysis, competitive advantage.
Volkswagen AG's US Market Entry Strategy: Frequently Asked Questions
What is the main objective of this report?
The report analyzes Volkswagen AG's production strategies for the US market, focusing on its new manufacturing center in Chattanooga, Tennessee. It examines the company's internal strengths and weaknesses, external market factors, and the suitability of different operation modes (joint ventures and wholly owned subsidiaries) for market entry.
What are the key themes explored in the report?
The report explores Volkswagen's market entry strategy into the US, analyzes internal and external factors influencing its success, compares different operation modes (Joint Venture vs. Wholly Owned Subsidiary), and assesses the suitability of chosen operation modes for Volkswagen's goals.
What internal factors are considered in the analysis?
The analysis considers Volkswagen's corporate goals, strengths (e.g., robust financial position, brand diversification), and weaknesses (e.g., lower overall quality compared to competitors, need to enhance US brand image). It also highlights potential advantages of workforce acquisition from a downsizing competitor.
What external factors are considered in the analysis?
The report examines market factors relevant to the automotive industry in the US, as well as political, economic, and socio-cultural environmental factors impacting Volkswagen's operations. This includes an assessment of market opportunities and challenges within the US context.
What operation modes are considered for Volkswagen's US market entry?
The report examines Joint Ventures and Wholly Owned Subsidiaries as potential market entry modes. Within Wholly Owned Subsidiaries, both acquisition and greenfield investment are analyzed.
How are the different operation modes analyzed?
Each operation mode (Joint Venture, Wholly Owned Subsidiary – Acquisition and Greenfield) is described in detail, outlining its characteristics, advantages, and disadvantages. A comparative analysis assesses the suitability of each mode for achieving Volkswagen's objectives in the US market.
What is the significance of Volkswagen's Chattanooga plant?
The Chattanooga plant is presented as a key initiative to increase Volkswagen's market share in the US, overcoming previous limitations and enabling the company to tailor vehicles specifically for the US market. The significant investment reflects Volkswagen's long-term commitment to the US market.
What are the key challenges faced by Volkswagen in the US market?
The report highlights a significant sales decline for Volkswagen in the US market despite being the world's third-largest car manufacturer. This decline, along with the need to improve brand image and quality, are key challenges addressed.
What is the overall conclusion of the report (inferred from the summaries)?
The report aims to provide a comprehensive analysis to guide Volkswagen's decision-making regarding its optimal market entry strategy in the US, weighing the internal capabilities and external environmental factors against the potential of different operation modes.
What are the key words associated with this report?
Volkswagen AG, US market entry, production strategies, Chattanooga plant, market share, economic crisis, operation modes, joint venture, wholly owned subsidiary, acquisition, greenfield investment, corporate goals, internal factors, external factors, market analysis, competitive advantage.
- Quote paper
- Oliver Gätgens (Author), 2009, Volkswagen - production strategies for the US market, Munich, GRIN Verlag, https://www.grin.com/document/174928
