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    German Automotive Industry

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    The document discusses Volkswagen Group's strategy and operations in China. It provides an overview of VW's entry into China through joint ventures starting in 1978. It analyzes VW's value chain and reasons for internationalization. The document also summarizes VW Group's current presence and brands in China, and discusses Skoda's role and performance within the VW Group. It concludes with future trends in the automotive industry.

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    German Automotive Industry

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    Para The Bini
    157 views37 pages
    The document discusses Volkswagen Group's strategy and operations in China. It provides an overview of VW's entry into China through joint ventures starting in 1978. It analyzes VW's value chain and reasons for internationalization. The document also summarizes VW Group's current presence and brands in China, and discusses Skoda's role and performance within the VW Group. It concludes with future trends in the automotive industry.

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    The document discusses Volkswagen Group's strategy and operations in China. It provides an overview of VW's entry into China through joint ventures starting in 1978. It analyzes VW's value chain and reasons for internationalization. The document also summarizes VW Group's current presence and brands in China, and discusses Skoda's role and performance within the VW Group. It concludes with future trends in the automotive industry.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    157 views37 pages

    German Automotive Industry

    Uploaded by

    Para The Bini
    The document discusses Volkswagen Group's strategy and operations in China. It provides an overview of VW's entry into China through joint ventures starting in 1978. It analyzes VW's value chain and reasons for internationalization. The document also summarizes VW Group's current presence and brands in China, and discusses Skoda's role and performance within the VW Group. It concludes with future trends in the automotive industry.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 37

    So-Jung Kim Milena Baur Valeriya Zhuvertseva Madini Liebscher

    Industry Development Porters 5 Forces Value Chain Internationalization VW Strategy Analysis


    VW Group China Skoda

    Future Trends

    1886, Daimler 1886, Benz

    By 1901 Weimar Republic (1918-1933)

    Motorization (Motorisierung) Great Depression (Early 1930s) During 1930s

    Today

    Porter's Five Forces Analysis of the Automobile Industry

    Threat of New Entrants

    Bargaining Power of Suppliers

    Rivalry among Existing Competitors

    Bargaining Power of Buyers

    Threat of Substitute Products or Services

    Value Chain
    1970
    Manufacturing Car Dealers

    OEM

    Development

    Assembly

    Marketing

    Distribution

    Customer

    Suppliers 2011+

    Parts/Components

    OEM Suppliers

    General Development

    Manufacturing

    Final Assembly

    Marketing

    Distribution

    Car Dealers

    Customer

    -components and systems development -parts and components manufacturing -parts and systems assembly

    Internationalization

    Why Internationalize?

    For To geographical expand acquire gain synergies market resources reason

    Environmental scanning

    Strategy Formulation

    Strategy Implementation

    Evaluation & Control

    Entry Modes
    Home Country Host Country

    Level of Risk & Control

    Exporting Licensing & Franchising Joint Venture Wholly-owned subsidiary

    Involvement (Geographical center of Operation)

    Produce automobiles, commercial vehicles, engines 61 production plants in 21 countries Production output: 7,4 mln units for sale in 153 countries (2010) 3rd biggest motor vehicle manufacturer & Largest carmaker in Europe

    made up of nine brands

    Strength brand portfolio diversification focus on R&D

    Weaknesses Relatively low employee productivity Sluggish performance in few market sectors Threats Loss of market share Severe competition Cannibalization

    Opportunities Global growth potential

    1978: Negotiations with Chinese government

    1984: joint venture agreement for Shanghai Volkswagen Automotive Co., Ltd. (SVW)
    1990: Signing of the joint venture agreement for FAWVolkswagen Automotive Co., Ltd. (FAW-VW) 1996: Shanghai Volkswagen sets up R&D center

    1999: Foundation of the Volkswagen (China) Investment Company Ltd. 2004: Foundation of VOLKSWAGEN Group China 2007: Launch Powertrain Strategy 2008: Successful sponsorship of Beijing Olympics. Today: VW Group China is represented by 16 companies

    Chinese government does not approve wholly owned subsidiaries Typical step for initial international expansion to unfamiliar foreign market Strengthening market position to block competition

    VWLate took a proactive by entering China Market Further boom 1990s of market the approach automotive became more market, competitive; especially VW during the early shares 1990s, dropped brought fromsignificant over 50% (1999) profitstofor 16% Volkswagen (2010) Group
    Automobile Production (mln. units)
    20
    15 10 5 0

    1999

    2003

    1992

    2000

    2001

    2002

    2004

    2005

    2006

    2007

    2008

    2009

    Competitive environment 1985 2010

    2010

    2008 - 503 2009 468 2010 - 550

    +9.2%

    2008 2,989 2009 2,918 2010 2,903

    -2.9%

    2008 - 560 2009 385 2010 - 429

    -23.4%

    2008 1,024 2009 1,401 2010 1,925 2008 803 2009 826 2010 908

    +87.9%

    +13.0%

    2008 19 2009 19 2010 54

    +185.5%

    Strategy 2018

    New emerging markets Multi-brand stragety target different market segments

    biggest car producer in eastern Europe faster & better access into east European market geographic proximity greater size expand market increase market share efficiency gains through synergies supplier

    Performance: Production and Quality Improvement re-branding mass market car brand

    Global success under VW

    VW Group
    Production output Operating Income
    7,357,505 units

    Skoda
    762,600 units

    % of VW Group
    10,36%

    7.141 billion

    1.31 billion

    18,34%

    Future Market Trends


    -HIGH-TECH -SHORTER PLC

    -GLOBAL FOCUS
    BRIC USA

    - COMPETITION - PLATFORM AND MODULE CONCEPT

    2020: 1 000 000 e-cars 000 jobs on30 german streets

    300 000 Euro

    THE
    BMW i8

    Lamborghini Aventador
    CARBON

    E-CAR
    BMW i3

    Sources
    Handelsblatt, editions no. 84, 88, 92, 94, 95, 97, 98 http://www.economywatch.com/world-industries/automobile/germany-autoindustry.html http://www.vda.de/en/zahlen/jahreszahlen/ http://www.vda.de/en/meldungen/news/20110318-1.html

    http://www.vda.de/en/meldungen/news/20110316-1.html
    http://www.bem-ev.de/strukturwandel-der-deutschen-automobilindustrie/ http://www.scribd.com/doc/18337/Globale-Wertschopfungskette-derAutomobilindustrie http://www.german-businessportal.info/GBP/Redaktion/en/PDF/automotive-industry-in-germany-investin-germany,property=pdf,bereich=gbp,sprache=en,rwb=true.pdf

    Souces:
    http://www.spiegel.de/international/business/bild-682530-67534.html www.skoda-auto.com www.VW.de http://tutor2u.net/business/marketing/casestudy_skoda.asp http://www.volkswagenag.com/vwag/vwcorp/info_center/en/publications/2011/03/Volkswagen_AG _Geschaeftsbericht_2010.-bin.acq/qual-BinaryStorageItem.Single.File/GB_2010_e.pdf http://www.google.de/imgres?imgurl=http://3.bp.blogspot.com/_bDeJOEIwcBE/Sh0wp6AoryI/AAAA AAAAArU/wUve10PKdS4/s320/skoda%2Blogo.jpg&imgrefurl=http://www.new-britishcars.com/2009/05/skoda.html&usg=__5hPjM6Q0WleuT5LVInCI5dNfPM=&h=320&w=320&sz=20&hl=de&start=0&zoom=1&tbnid=2SCNJLxgVpC_9M:&tbnh=140&tbnw =141&ei=X8HcTef_Hsrwsgb2r5DqDg&prev=/search%3Fq%3DVW%2Bgroup%2Blogo%26um%3D1%26hl %3Dde%26sa%3DN%26biw%3D1280%26bih%3D709%26tbm%3Disch&um=1&itbs=1&iact=rc&dur=473&s qi=2&page=1&ndsp=27&ved=1t:429,r:7,s:0&tx=73&ty=82 http://www.quickmba.com/strategy/global/marketentry/ http://www.volkswagenag.com/vwag/vwcorp/info_center/en/publications/2011/03/Volkswagen_AG _Geschaeftsbericht_2010.-bin.acq/qual-BinaryStorageItem.Single.File/GB_2010_e.pdf http://www.autonews.com/files/06_china/pdf/anc_dieter_seemann_nov_16_english.pdf http://www.ecch.com/casesearch/product_details.cfm?id=69862&rellnk=1 http://www.secinfo.com/d13Wqv.v1r4.d.htm

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