Corporate Strategy Analysis Of Volkswagen

Corporate Strategy Analysis of Volkswagen Name Affiliation Corporate Strategy Analysis of Volkswagen The Volkswagen Group recently announced its new strategy that aims to take global the firm’s achievement in China of the “top of volume”. The established firm which boasts various brands around the world embarks on a long-term comprehensive strategy that puts together both the interior and exterior factors of the industry. It represents an all-round approach that builds around the best interests of the company, its investors, consumers, and the general public CITATION Mul17 \l 1033 (Muller, 2017). Branded TRANSFORM 2025+, the decade-long strategy aims to establish and cement the superiority of its brand across different regions around the world through customer satisfaction. It aims to achieve the grand fete through innovative measures in improved connectivity, e-mobility, and environmental awareness through sustainable mobility. The success of this strategy is also fundamentally held on the firm’s renewed team spirit as an integral part of its culture CITATION Mul17 \l 1033 (Muller, 2017). The strategy’s implementation is projected to run up to the year 2030, and in three phases each tasked with achieving a specific growth purpose. In order to understand the goals of the group’s strategy, it is important to analyze it in terms of plan’s vertical integration diversification, strategic alliances, competitiveness, and its organizational design. Vertical integration diversification TRANSFORM 2025+, is a 3-phased strategy aimed at achieving specific target goals that will ensure the group’s position as the leading original equipment manufacturer (OEM) in the world remains the sameCITATION Vol16 \t \l 1033 (Volkswagen, 2016). In a world where new innovations in technology is the order of the day, it is only important for any manufacturing firm to invest in modern technology and their application. The multi-phased strategy centers on advanced technical innovations in the mobility sector through a brand restructuring period running for two years up to 2020. The manufacturing of electric cars is on the rise, and in order to remain relevant or competitive in the market, Volkswagen dedicates more resources towards e-mobility for the period 2020 to 2025. Through quality and profitable volume production of approximately 10 million electric cars per year, the firm aims to ascertain its leading position in OEM through a wider revenue base. The revenue base will be created through new mobility services, thanks to the broader base of service applications that come its investment in the digital platform. Old models which were low-earning would be discontinued to finance the new course of action. The group also endeavors to take a leading role in innovations pertaining to e-mobility thus cutting a niche for itself by 2030 and going forward. M & A, and Strategic Alliances The Volkswagen group has made various strategic mergers, acquisitions, and allian...