Saturday, February 18, 2012

Analyzing the External Environment


Volkswagen operates worldwide on various markets and as we can agree, the automobile markets are different and because of that the strategies Volkswagen has should be different. For instance not all of the models are offered everywhere. However, Volkswagen does not change its products as much as the other brands do, instead they just enrich their model range and offer different models in different areas. 
For instance the Volkswagen Polo (on the picture) is the volume maker in Europe but is not even offered in the USA.
In the recent past the automobile market went through a significant change as a result of the Global Economic Crisis backed up with the Environmental problems the world is facing. So, people started to be more and more interested in more ecological and more economical cars. Hybrids, electric cars,  alternative fuel cars, they all flooded the market. Volkswagen had to change, too. But the company is known to be the market leader in innovation, which means that they started changing and the whole marked followed. 
However, what they did is not making cheaper cars with cheaper products, instead they introduced cars with completely new technology. Instead of introducing hybrids, which the media loves so much, they worked on technology called Bluemotion, thanks to which the normal petrol engine is more ecological and efficient and cheaper than the hybrid ones. You can see BlueMotion Simply explained here: http://www.youtube.com/watch?v=OUnCaJKGEn0.

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