,Volkswagen,-,peoples car,Team 6:,Stone,Thomas,Cheryl,Peter ,Ben,Libby.,Volkswagen-peoples car,Agenda,Introduction -Stone,Field market research report -Thomas,SWOT Analysis -Cheryl,Strategies -Peter,Value chain optimization -Ben,Risks&Contingency plan -Libby,Agenda Introduction,History,：,Introduction,1937,：,K,nown as“Gesellschaft zur Vorbereitung,des,Volkswagens,”,1938,：,R,enamed“Volkswagenwerk GmbH,”,1939-1945,：,S,witched to,armaments,1945-1948,：,British Military Government,in,manage,ment,1948,：,R,eturned Volkswagens to Germany.,1952,：,I,nternationalization,1981:,C,hange name“Volkswagen Caminhoes“,1985:Shanghai VW was established,2005,:,E,stablished two joint venture companies in China,Its HQ located in,Wolfsburg.,The largest automobile maker in,Europe.,The t,hird largest automobile maker in the,World.,History：Introduction1937：Known,Ownership Structure,The share ownership of Volkswagen AG is distributed as follows:,Ownership StructureThe share,Vision of Volkswagen,Vision:,Future powertrains and fuels for sustainable mobility.,Vision of VolkswagenVision:,Mission of Volkswagen,Biological,Climate,protection,Species,protection,Partnership,Blue Motion Technologies:a pledge to protect the environment,Environmental protection has many helping hands,Environmental protection the smart way thanks to Blue MotionTechnologies,Its a promise:true driving pleasure plus environmental protection,Volkswagen publishes mission statement on biodiversity.,Mission of VolkswagenBiologica,Brand portfolio,Brand portfolio,Annual growth,in 000 million,The Groups sales revenue in 2009 will be lower than in the previous year because of the decline in volume sales.,Annual growthin 000 million,Field Market Research,Field Market Research,Field Market Research,Volkswagen Car Dealer HongQiaoProduct line:Santana*PassatPoloTouran,medium-sized cars,34 VW stores in total in SH area*(23%market share in SH),Field Market ResearchVolkswag,Measurement of Success,Sales by volume(revenue)-sales in total-sales by m,2,-customer feedback via surveys from JD Power,Target customer,-Santana:small businesses,-Polo:age range:25-35,white collar,-Passat:age range:35-50,successful people,Field Market Research,Measurement of Success S,Classical model of low costs and high profit margin?,Constant product line,Few different cars available,Occassionally low profit or no profit at all from selling VW cars,Instead profit from maintenance and bonuses directly from the company,Field Market Research,Classical model of low costs,Road to Success,Maintain customer base,Keep sales constant(difficult competition in SH),Financial Crisis has so far had little impact,Sales are stable,Oil is cheaper,Cost of raw material has,decreased,(steel,glass),Field Market Research,Road to SuccessField Market Re,Challenges in the Current Environment,High demand for low-end cars,Difficult market situation in provinces with lower income,Manufacturing cost reductions may affect quality of the end product,Volume of maintenance not very high,Low sales volume in the North and in the South of China(e.g.less than 4%of all VW vehicles are being sold in the Southern region,such as Guangdong province),Field Market Research,Challenges in the Current Envi,Competitors,Toyota:better after-sales service,GM:special offers(in general ten to twenty-thousand RMB cheaper);concern about market share,Dealers long-term strategy,More market share in China desired,Maintain sales at high level and keep loyal customers,Better after-sales service,Field Market Research,CompetitorsField Market Resea,CTQ Analysis,Safety,Brand reputation,Price,Styling,Oil-consumption,After-sale service,After-sale service,2.3%,Styling,6.7%,Price,14.7%,Brand,17.6%,Safety,52.2%,safety,brand,price,styling,Oil,service,Oil-consumption,5.3%,CTQ Analysis Saf,PESTAL Analysis,Political,Economic,Social,Environmental,Technological,Legal,Economic,：,Increase in material and energy price in the long run.,Financial crisis,Economy 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 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 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 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 2