Saturday, March 31, 2012

Creating Value in Global Markets

Volkswagen works on all markets around the world. However, the products and brands it offers are not the same everywhere. For instance Skoda and Seat are not offered in the USA. Reaons for the product difference is customers' expectations, geographic and political differences. Small cars like Up! and Polo are not offered in the USA because customers expect and want bigger size cars like the Jetta, which is a best seller. The equipment offered in the EU is different from the one offered in the USA because of the ecological norms all of the cars in the EU should fulfill. 

Volkswagen uses different strategies to make the products cycles longer. The Clasico offered in Mexico is model which is no longer offered in Europe. However, it is only simillar but not exactly the same. Along with it, the new models are also offered. Another strategy used is a transfer to another brands. The product are not the same but they use the same technology, production line, logistics and strategies. After a car is no longer offered in Volkswagen, it is offered as a new Seat model. I want to point out that the car is not exactly the same, but enought ideas and elements are used in order to make the production cheaper. 

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