After purchasing the German sports car producer Porsche AG, Europe’s biggest car company, the Volkswagen AG (VW) is now made up of ten brands. After several years of sustainable growth and acquisitions, VW’s aim is to outstrip the leading Japanese car company Toyota Motor Corporation (Toyota). Impressive key figures, a successful global growth strategy and possibly further aqcuisitions may be some key points to achieve their ultimate aim of being the world’s biggest car producer by 2018. To give us a more detailed picture a generalized double diamond approach will examine the global competitiveness of both VW and Toyota.
Table of Contents
1. INTRODUCTION
1.1. Company Profile
1.2. Reason and Concern of this Research Study
2. DETERMINANTS AND DESCRIPTIVE DATA
2.1. Firm Strategy, Structure and Rivalry
2.1.1. Domestic Firm Strategy, Structure and Rivalry
2.1.2. International Firm Strategy, Structure and Rivalry
2.2. Factor Conditions
2.2.1. Domestic Factor Conditions
2.2.2. International Factor Conditions
2.3. Demand Conditions
2.3.1. Domestic Demand Conditions
2.3.2. International Demand Conditions
2.4. Related and Supporting Industries
2.4.1. Domestic Related and Supporting Industries
2.4.2. International Related and Supporting Industries
3. EMPIRICAL RESULTS
3.1. Calculations
3.2. The Domestic Diamond
3.3. The International Diamond
3.4. The Global Diamond
4. UPSHOT
Research Objectives and Core Themes
This study examines and compares the global competitiveness of Volkswagen AG (VW) and Toyota Motor Corporation using the generalized double diamond model to analyze key determinants such as firm strategy, factor conditions, demand conditions, and supporting industries.
- Application of the generalized double diamond model in the automotive sector.
- Comparative analysis of VW and Toyota's strategic positioning and future technology development.
- Evaluation of domestic and international competitiveness based on quantitative proxy variables.
- Assessment of the impact of global growth strategies and market dynamics on competitiveness.
Excerpt from the Book
1.2. Reason and Concern of this Research Study
Despite VW’s official goal being the world’s largest car manufacturer by 2018, there are numerous experts stating that this target will be achieved earlier. In the first nine month of 2009, VW halved the gap of sold cars between Toyota to one million. Reason being that VW’s sales shrunk only 5.5% due to the crisis, but Toyota lost about 20% (Financial Times Germany, 2009). Volkswagen benefited mainly of strong growth rates in China and the “cash for clunkers” schemes in Germany and Great Britain. Moreover, this year VW acquired the German sports car manufacturer Porsche and is looking into acquiring Suzuki and the German commercial car company MAN.
Due to these circumstances, the oversupply in the car industry and varied and diverse analyzes of experts, I think we need the generalized double diamond model (Moon, Rugman and Verbeke 1995, 1998) to analyze all determinants of competitiveness for both VW and Toyota.
Summary of Chapters
1. INTRODUCTION: Provides an overview of the company profiles for Volkswagen and Toyota and establishes the research rationale based on the current competitive landscape in the automotive industry.
2. DETERMINANTS AND DESCRIPTIVE DATA: Defines the four determinants of the diamond model—firm strategy, factor conditions, demand conditions, and related industries—and identifies the specific variables used for the analysis.
3. EMPIRICAL RESULTS: Presents the quantitative data and scores for the domestic, international, and global diamonds, illustrating the competitive strengths and weaknesses of both manufacturers.
4. UPSHOT: Concludes the analysis by discussing the empirical findings and offering perspectives on future market developments and the limitations of the chosen theoretical framework.
Keywords
Volkswagen, Toyota, Competitiveness, Double Diamond Model, Automotive Industry, Strategy, Factor Conditions, Demand Conditions, Globalization, Market Share, R&D, Innovation, Hybrid Technology, Empirical Analysis, Corporate Strategy
Frequently Asked Questions
What is the fundamental focus of this research?
The paper evaluates the global competitiveness of two major car manufacturers, Volkswagen and Toyota, by applying the generalized double diamond model.
What are the primary thematic fields covered in this study?
The study covers strategic firm management, domestic and international factor conditions, market demand conditions, and the role of related and supporting industries.
What is the central goal of this research study?
The primary aim is to analyze and compare the competitive positioning of VW and Toyota to understand how they perform across different national and global determinants.
Which scientific methodology is employed?
The author utilizes the generalized double diamond model, converting quantitative proxy data into weighted scores to provide a comparative analysis.
What topics are discussed in the main body of the work?
The main body details the methodology of the diamond model, provides descriptive data for each determinant, and presents the empirical calculations for both companies.
Which keywords characterize this analysis?
Key terms include competitiveness, Volkswagen, Toyota, double diamond model, and global automotive strategy.
How does the author weight the competitiveness determinants?
The author assigns weights based on perceived importance, where higher amounts in descriptive data receive higher scores on a scale from zero to ten.
What role does future technology play in the competitiveness of these companies?
The study highlights that both companies are actively developing future technologies, specifically focusing on diesel efficiency and hybrid engines.
Why does the author suggest a second approach in 2011?
Due to ongoing acquisitions like Porsche and changing market conditions, the author believes a follow-up study would provide a more accurate comparison of the companies' development.
What are the limitations of the generalized double diamond model as mentioned?
The author notes that it is a theoretical framework and cannot predict future management decisions or fully capture the subjective nature of proxy weightings.
- Quote paper
- Bachelor of Arts Lukas Brinkmann (Author), 2009, Global competitiveness of the car industry, Munich, GRIN Verlag, https://www.grin.com/document/168107
