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VW´s international strategy

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chris busemann

on 4 January 2013

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Transcript of VW´s international strategy

VW Group VW´s international strategy The agenda for the next decade is set. As far as the VW Group is concerned the common goal is to become world leader by 2018. Table of content Aiming to be the world leader Global Strategy Aiming to be the world leader International Sales and Market Shares
The transnational organization
VW`s approach to global markets Local marketing strategy - China Aiming to be the world leader Sales Growth
Optimization rate of return
Greater Customer Satisfaction
Improving Quality
Promoting Sustainability Video

Volkswagen Group (2010b):
Sustainability Report 2010.
[online] Available from: http://www.volkswagenag.com/content/vwcorp/info_center/en/publications/2011/05/Report_2010.-bin.acq/qual-BinaryStorageItem.Single.File/VWAG_Nachhaltigkeitsbericht_online_e.pdf
[Accessed October 1st, 2012].

Volkswagen Group (2010a): Annual Report 2010. [online] Available from:
[Accessed September 23rd, 2012].


http://www.welt.de/wirtschaft/article109095227/Ford-will-der-Krise-mit-dem-Welt-Auto-trotzen.html&docid=RmBFOo7vo7YvAM&imgurl=http://www.welt.de/img/wirtschaft/crop109095224/6615353698-ci3x2s-w220-ai2x3l/DWO-Ford1.jpg&w=220&h=146&ei=-ovLUKrwA8fmswavtYCYAQ&zoom=1&iact=rc&dur=308&sig=103890741674193924568&page=1&tbnh=116&tbnw=176&start=0&ndsp=49&ved=1t:429,r:1,s:0,i:88&tx=124&ty=90 Bibliography Multi Brand Strategy Aiming to be the world leader
* Volkswagen Group (2012) Multi Brand Strategy Aiming to be the world leader
* CNN Money (2010) Importance of China Aiming to be the world leader Any questions ? Global Strategy Aiming to be the world leader Multinational organization
Global organization
International organization
Transnational organization Theoretical Background
* Buse (2012) Organizational
Characteristics Benefits of worldwide learning
customize product offerings and marketing in accordance with local responsiveness
exploit location economies
exploit experienced curved economies
* Buse (2012) Who is Volkswagen Aiming to be the world leader Aiming to be the world leader Car market size - Brand Aiming to be the world leader * Financial Times 2010 Car market size - World Innovation and performance index Aiming to be the world leader Growing markets - China Aiming to be the world leader * www.welt.de * Weiming Soh - 2011 Weiming Soh - 2011
Executive Vice President of Volkswagen Group China
Sales and Marketing

http://www.ft.com/home/europe - 2010
World light vehicle report


Buse, Stefan (2012)
The transnational model (MBA Skript WS 12/13) Bibliography * Weiming Soh - 2011 * Weiming Soh - 2011 * www.welt.de Sales Situation Jan-Jul 2012 Aiming to be the world leader * Braunschweiger Zeitung 2012 *Volkswagen Media Center Strategy 2018 Setting Toyota
as standard Comparison of VW & Toyota
* Schmid & Grosche (2007) Global Strategy Aiming to be the world leader Global Strategy Aiming to be the world leader Example: VW Group in China
* Volkswagen Fact Book (2012)
* Schmid & Grosche (2007) What VW and Toyota have in common: Production activities on site bring profitable market share in the target markets
Penetrating foreign markets by establishing local production sites
Competitive disadvantages is mostly caused by lack of production sites
Adapt the products to the local needs Local Presence Fulfill Local Needs
Top Seller in China 2011
with 21086 units sold Global Strategy Aiming to be the world leader Configuration of VW Group's R&D Activities
* Schmid & Grosche (2007)
* Schmid & Grosche (2007)
* Volkswagen Group (2012)
* Volkswagen Group (2012)
* Volkswagen Group (2012)
* Volkswagen Group (2012)
* Volkswagen Group (2012)
* Volkswagen Group (2006) Global Strategy Aiming to be the world leader Conclusion: Adapting the products to the needs of the customers in target markets is a crucial aspect to become successful in global business
This is realized by region- or country specific model adaptation that applies the modular approach by benefiting of scale affects Organizational Strategies Theoretical Background Organizational Characteristics Multinational Global International Transnational Configuration of
assets and capabilities Decentralized and
nationally self-
sufficient Sensing and exploiting
local opportunities Knowledge
and retained within
each unit Centralized and
globally scaled Implementing
parent company
strategies Knowledge
development and
retained at the
center Source of core
centralized, others
decentralized Adapting and leveraging parent company competencies Knowledge development at the center and transfer to oversea units Dispersed, interdependent and specialized Differentiated contributions by national units to integrated world wide operations Knowledge development jointly and shared worldwide Development and
diffusion of knowledge Role of overseas
operations Theoretical Background Roles and Responsibilities strategic important market
low internal competence
strong local position
should be strategic leader but lacks the competence low internal competence
nearly no contribution to strategic knowledge
located in an unimportant market
generate resources that support R&D high internal competence
located in a strategic important market
legitimate partner with HQ in R&D and strategic trust high internal competence
located in a strategic important market
support worldwide operations and especially strategic leader Black Hole Strategic Leader Contributor Implementer Theoretical Background Advantages of the Transnational Strategy Difficult to implement due to organizational problems Theoretical Background Disadvantage of the Transnational Strategy CNN Money: Volkswagen Das Auto Giant
[Online] Available from:
[Accessed December 2nd, 2012] Schmid & Grosche (2007)
Managing the International Value Chain in the Automotive Industry
[online] Available from:
[Accessed 6th December 2012] Volkswagen Group (2012): On the Road to Success
[online] Available from:
[Accessed 4th December 2012] Volkswagen Fact Book (2012)
[online] Available from:
[Accessed 27th November 2012] Bibliography Volkswagen Group (2006): An Overview of Volkswagen's Policy in China
[online] Available from:
[Accessed 6th December 2012]
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