Volkswagen Group is based in Wolfsburg, Germany, ranks among the world’s leading automobile manufacturer and is the largest carmaker in Europe. Therefore the Group posses 11.3 percent share of the world passenger car market and holds 20.9 percent of the European automobile market. The Volkswagen Group with its nine brands (Audi, SEAT, Škoda, Volkswagen, Volkswagen Commercial Vehicles, Bentley, Bugatti, Lamborghini and Scania) offers a broad product range from low-consumption small cars to luxury class vehicles. For simplicity reasons the Volkswagen Aktiengesellschaft (as parent company of the Volkswagen group) is referred to as Volkswagen or VW where as the whole Volkswagen Group is either referred to as Volkswagen (VW) Group or Group within this paper. Despite the Group’s international alignment it is currently only slightly represented in India. As it has entered the Indian passenger car market ten years ago, significantly later than its Japanese and American competitors, its current market share amounts only to two percent. Because potential customers are increasing, the automotive industry is getting more dynamical and international and government’s politics are focusing on economic growth, India could become the future key market to the automotive industry. Due to the eminently strong growth of the Indian main street and the proceeding social change, as the younger generation wants to go for a distinguished career, especially the Indian minicar market’s (IMM) potential is higher than ever before. As Volkswagen Group is alive to the importance of this market but lacking in appropriate knowledge how to produce cheapest cars in large-scale production, it considers strengthening the cooperation with Suzuki Motor Corporation and Volkswagen by building a Joint Venture (JV). Thus, the already existing cross share- holding as shown in Appendix A could evolve into a new common entity. This paper analyses, appraises and evaluates in what way this strategy is promising for Volkswagen and how far Suzuki is an appropriate partner. Therefore, this assignment contributes to the assessment of the strategy’s prospect of success. Therefore, Appendix B was used partly as framework in this paper. Firstly, Volkswagen Group’s vision and history is epitomised and its objectives are outlined. Secondly, chosen resources of Volkswagen are revealed (2) and it is analysed how far they are transferable to the mentioned market and to which extent the JV with Suzuki Motor ...
Table of Contents
- Introduction
- Volkswagen Group's history, objectives and vision
- Analysis and evaluation of chosen resources of Volkswagen and their transferability to the IMM whilst taking the JV into account
- Tangible Assets
- Physical resources: Location of plants and supplier network
- Intangible Assets
- Research and development capabilities
- Perceptions of product quality, durability, and reliability among customers
- Indian's market for minicars
- India's business environment
- Conclusion
Objectives and Key Themes
This paper examines the potential of Volkswagen Group to enter the Indian minicar market (IMM) and the role of Suzuki as a Joint Venture (JV) partner. It analyzes and evaluates the transferability of Volkswagen's resources to the IMM and assesses the feasibility of the JV strategy. The paper investigates the strategic importance of the IMM, analyzes India's business environment, and evaluates the potential success of the proposed JV.
- Volkswagen Group's resources and their transferability to the IMM.
- The strategic importance of the IMM and its growth potential.
- The suitability of Suzuki as a JV partner for Volkswagen in the IMM.
- India's business environment and its impact on the automotive industry.
- The potential success of the proposed JV strategy.
Chapter Summaries
- Introduction: This chapter provides an overview of Volkswagen Group's position in the global automotive market and its limited presence in India. It highlights the potential of the Indian minicar market and the strategic significance of a JV with Suzuki.
- Volkswagen Group's history, objectives and vision: This chapter outlines Volkswagen Group's history, objectives, and strategic vision, focusing on its international expansion strategy and its commitment to sustainable development.
- Analysis and evaluation of chosen resources of Volkswagen and their transferability to the IMM whilst taking the JV into account: This chapter analyzes Volkswagen's tangible and intangible assets, including its physical resources, research and development capabilities, and reputation. It evaluates the transferability of these resources to the IMM and examines the potential impact of the JV with Suzuki.
- Indian's market for minicars: This chapter explores the growth potential and characteristics of the Indian minicar market, highlighting its attractiveness for Volkswagen.
- India's business environment: This chapter provides a brief overview of India's business environment and its impact on the automotive industry, considering factors such as government policies, infrastructure, and market dynamics.
Keywords
This paper focuses on the analysis and evaluation of Volkswagen's resources, their transferability to the Indian minicar market (IMM), and the role of Suzuki as a Joint Venture (JV) partner. Key concepts include tangible and intangible assets, research and development, brand reputation, market dynamics, business environment, and strategic alliances.
- Quote paper
- Jan Kubik (Author), 2010, Analysis and evaluation of chosen resources of Volkswagen in Germany and in respect of the Indian minicar market and the role of Suzuki as a Joint Venture prospect, Munich, GRIN Verlag, https://www.grin.com/document/167909
