1、Volkswagen - peoples car,Team 6: Stone , Thomas, Cheryl, Peter , Ben, Libby .,Agenda,Introduction - Stone Field market research report - Thomas SWOT Analysis - Cheryl Strategies - Peter Value chain optimization - Ben Risks concern about market share Dealers long-term strategy More market share in Ch

2、ina desired Maintain sales at high level and keep loyal customers Better after-sales service,Field Market Research,CTQ Analysis,Safety Brand reputation Price Styling Oil-consumption After-sale service,PESTAL Analysis,Economic： Increase in material and energy price in the long run. Financial crisis E

3、conomy grew by 9% in the third quarter of 2008 - the lowest level since mid-2003. In 2008, Growth in the auto sector slowed to 6.7% - the lowest level in a decade. Jan.2009, overall car sales were down 14% compared with the same period a year ago (U.S. sales fell 37%). Forecast: shrink for the first

4、 time in 20 years .,Political： Stimulus Package for Car Sector mass production of electric cars in big and medium-sized cities targeted subsidies for rural buyers Tax Policy.,Social - Cultural： In western countries, its a century old industry ; In China its not even decades old Chinas auto market is

5、 far from saturated - especially for private vehicles. Demand continues to grow with the increase of personal wealth More recognition of quality, environment and brand Changing consumer priorities,Technological： Foreign companies bring advanced technologies into China but local technology still lag

6、behind. a 10-billion-yuan subsidy over the next three years for auto makers that upgrade their technology and develop alternative-energy vehicles. -,Environmental： In 2007,new motor vehicle emission standards, a move that should cut automobile pollutants by 30 percent（ equivalent to the Euro III sta

7、ndard） In 2008, Sales tax increase in large engine cars. In 2009, sales tax reduction from 10%to 5% (engine 1.6 liters) In 2010，a more stringent standard, equivalent to Euro IV ,will take effect,PESTAL Analysis,Legal： Tax system Regulations of gas emission,Internal analysis-Strength,Brand image Broa

8、d Product portfolio Leading market share in China market High technology& quality - safety Northern area,Internal analysis - Weakness,Southern area Weak turnover ratio Bad management and low productivity Service Low capacity utilization,SWOT Analysis,20,SWOT,Brand image &Product portfolio Leading ma

9、rket share High technology& quality First foreign Auto company,Bad management and low productivity - Weak turnover ratio Low capacity utilization,focus on fuel-efficient cars Potential growth rate -increase of purchasing power More recognition of quality,-Changing consumer priorities -Stringent emis

10、sion regulations -Rising materials energy price Downturn of economy Fierce competition,Strength,Weakness,Opportunities,Threats,Strategy formulation-SO,21,Brand image &Product portfolio Leading market share High technology& quality First foreign Auto company,focus on fuel-efficient cars Potential gro

11、wth rate -increase of purchasing power More recognition of quality,Strength,Opportunities, Try to commercialize fuel-efficient vehicles. - Expand in second ties regions Optimize the portfolio of the product lines. Expand the distribution channels,SO strategy,Strategy formulation-ST,22,Brand image &P

12、roduct portfolio Leading market share High technology& quality First foreign Auto company,-Changing consumer priorities -Stringent emission regulations -Rising materials & labor cost Downturn of economy Fierce competition,Strength,Threats,- Improve the firms market position -Focus on customer demand

13、 and -reduce the competitive threat by developing new flexible product line,ST strategy,Strategy formulation-WO,23,focus on fuel-efficient cars Potential growth rate -increase of purchasing power More recognition of quality,no cooperation between SH VW & FAW VW - Weak turnover ratio - Low capacity u

14、tilization,Opportunities,Weakness, Production Line optimization platform combine different product line share,WO strategy,Strategy formulation-WT,24,-Changing consumer priorities -Stringent emission regulations -Rising materials& labor cost Downturn of economy Fierce competition,no cooperation betwe

15、en SH VW & FAW VW - Weak turnover ratio - Low capacity utilization,Threats,Weakness,-Focus on more oil efficency model & boost maturation - Value chain optimization,WT strategy,Strategy choose reason,Raw material & labor cost goes up,11% 5years 3292yuan,Strategy choose reason,Fierce competition More

16、 than 80 brands in china meanwhile only 40 in US Sales stores earn profits by rebates and service Margins in the car dealers space continue to compress 34 4S stores in shanghai which hire almost 5000 person Capacity utilizaiton rate no so high,Strategy (2009-2019),Growth of VW,Stage 1.（2009-2011） sa

17、les units :1250,000 China localization Platform integration New products,Stage 2.(2012-2016) sales units ：1780,000 Fuel efficient technology network expansion triple brand consolidation,Stage 3.（2016-2019） sales units ：2400,000 new energy technology Internal acquisition Leading brand position,2008,V

18、alue chain optimization,R&D center sharing -VW &Porsche -Shang VW and FAW New creation of Cars by focusing on passenger cars such as Lavida Support R&D Localization in china,Purchase localization Bargaining power Purchase integration Between FAW and SHW,Reduce the inventory Lean production System Production localization Sharing platform strategy,Marketing,Launch market Campaign Product portfolio Market strategy,Service training Service survey and Evaluation standardization,Cost Reduction,Market Campaign,Service,Value ch