Internal Analysis- Value-Chain Analysis

Volkswagen produces most of the units needed for the production of an automobile. However, most of the details part of those units are produced by other companies. The company has plants in all of the continents and each plants produces only for the local market. One reason for that decision is lower expenses when details and cars are not shipped longer distances and the other is helping the local economy. The decision the other companies took is to produce different models in different plants. However, VW factories manufacture many models at the same time.Another majour product Volkswagen supplies to its customers is the original parts. The company has several  majour warehouses in different areas and every single dealer orders separately and directly to VW, which make the transportation of the parts much faster.A new factory was recently built In Chatanooga, which was not only the next VW factory but it introduced a lot of environmental friendly technology. See more details here: http://www.youtube.com/watch?v=sDLNcxrkIpQ

Volkswagen's assembly line is the longest in the automobile world because of the number of operations needed to produce a car. Most of the operations are done by robots which decreases waste, enery and time needed. However, people still work in the assembly line but they mainly do the quality checks. A different factory is the class factory in Dresden. Volkswagen produces Phaeton (unfortunately, the model is not offered in the USA) and some of the Bentley models (dont't forget that Bentley is in fact Volkswagen's brand). Most of the work there is manual. The Transparent Factory is situated in the city center of Dresden, the 800-year-old German city known for its arts and craftsmanship. It stands at the former location of the convention center. The factory's walls are made almost completely of glass. Its floors are covered entirely in Canadian maple. Its visitor-friendly layout was designed to accommodate up to 250 tourists per day. The transparent factory handles final assembly only. To keep birds from flying into the glass, an outdoor speaker system emulates bird language marking the territory as "taken."

Volkswagen ships cars mainly to the same continent using boats, trains and trucks. There are  logistics centers in several areas where cars are shipped to the single dealer. No cars are produced without being ordered by somebody, which means that cars are not stored anywhere. They are produced for the customer. Then how do we see all those cars parked in the dealers' yards? Well, Dealers order and purchase those cars so that you can see and touch your car before you buy it. However, those are not considered stocked by the Volkswagen company but by the franchiser company. 

The Volkswagen brand is recognized worldwide. Beautiful logo almost unchanged for decades. The company has a full list of brand standards that has to be followed in each advert produced or in each product offered- placement of the logo, font style, colours, architecture. The company offers various models- from the tiny Up to the luxurious Phaeton and Touareg, which suggests that the company has different price policy for all of them. The company is aiming at world leadership and to achieve that it introduced new models- Schirocco, CC, Tiguan, Up, new techonoly which makes the cars more efficient and new production technology which makes the cars cheaper without decreasing the quality of the materials and the final product. The company carefully examined which feature is most popular and slightly changed what equipment is offered with each model. For instance the biggest engines are no longer offered with the New Jetta and the smallest ones are no longer offered with the New Passat, which makes the cars cheaper to produce. Volkswagen advertises in all of the medias. It is famous for its nontraditional advertisement. You can see an example on the picture where all of the cars are dreaming they were VW GTI.