VW performance improvement in the US

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Weber, Christian (2015) VW performance improvement in the US. [Dissertation (University of Nottingham only)]

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Abstract

Volkswagen of America has a low market share of 2.2 % in 2014 in the US auto industry. Sales figures decrease in almost all product categories and the CEO of the Volkswagen Group of America is under pressure because he fails to achieve sales targets.

The focus of this research is in the area of competitive advantage because gaining competitive advantage might result in a higher market share. The overall research aim is to find strategies how VW of America could double the market share until 2018. The theory of the resource-based view and the theory of positioning are used. Moreover, strategic recommendations are given about how to improve the current situation.

The research approach adopted in this dissertation includes a literature review of competitive advantage for the resource-based view and positioning and an analysis of empirical data. For the latter part the multiple case study approach was used and VW was compared with rivals: Ford, GM, Chrysler and Toyota. The majority of data was qualitative in nature but contained also quantitative parts.

This research produced a number of key findings. With the majority of resources VW of America might not be able to achieve sustained competitive advantage. Moreover, the analysis of competitive positioning shows that VW’s products might not be differentiated enough and VW’s margin might be low.

The main conclusions drawn from this study are: 1. VW of America possesses only a few resources to achieve sustained competitive advantage. 2. Apart from resources the results of competitive positioning show that VW has a lack of control over quality, issues with pricing and customer preferences. Moreover, VW should reduce costs significantly.

This dissertation recommends that VW should be active in the majority of product categories and should enter new segments. Moreover, VW needs to develop, upgrade and leverage resources and should agree joint-ventures where necessary. In addition to that the quality approach Six Sigma should be introduced and new car features should be offered. Furthermore, 650 employees should be laid off and the production capacity should be fully used. Finally, considering staging it can be recommended that initially resources for passenger car models should be developed and upgraded and strategic alliances should be agreed. Afterwards, the portfolio needs to be diversified and new products should be launched until 2018. VW of America might be able to double the market share until 2018 if the management decisions might be quick and priority is given to this project.

Item Type: Dissertation (University of Nottingham only)
Keywords: Competitive Advantage
Depositing User: Weber, Christian
Date Deposited: 11 Jun 2021 13:02
Last Modified: 11 Jun 2021 13:15
URI: https://eprints.nottingham.ac.uk/id/eprint/29879

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