Volkswagen Competitive Advantage

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Q1- Discuss if Volkswagen commands competitive advantage, if any, from its operations stratergy.
Volkswagen is one of the biggest automobile manufacturers in the world and has the target to be the biggest automobile company in the world by 2018. The operating profit of Volkswagen was recorded to be 12.8 billion euros in 2011 (currently 10.2 billion euros) and a total revenue of 275 billion euros, which is the highest in automobile sector. One of the main reasons for such a high level of productivity is Volkswagen labour force. Volkswagen has a total employee base of 592,500 people globally which is higher than its competitors such as Fiat-Chrysler (197,000), Ford (164,000) and General Motors (213,000) combined.
Volkswagen’s success has led
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This structure has been extremely successful while implementing the older stratergies as very employee knows their roles and expectations out of them.
To achieve high quality products and services and exceptional customer service, Volkswagen incorporates training programmes for all of its human capital before and after a business stratergy is developed and implemented.
• Under Volkswagen 2018 stratergy is to build a board of managerment body for the china region as it sold about 2.3 million cars in china alone gathering an operating profit of 2.6 billiuon euros.
• One of Volkswagen 2018 stratergies of selling over 10 millions cars globaaly has been alreary successfully implemented with Volkswagen passenger cars being 6.12 million in number, Audi being 1.7 million, Porch delivering 189,800 vehicles, SKODA selling 1.04 million cars, SEAT with 390,500, and Group’s three commercial brands i.e MAN, Scania and Volkswagen commercial vehicles collectively selling 646,500 cars globally. One of the core competencies of Volkswagen group is its high-performance diesel technology (TDI). It is a new car technology that makes cars even cleaner and environmentally

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