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economics courseowrk

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Introduction

Joaz Williamson How can Volkswagen lose its competitive edge? Evaluate the strategies they could employ to regain their former position. Nuffield Economics & Business AS level portfolio In this coursework I'm going to investigate competitive edge and how this can improve a Business and its financial situation. The company I'm going to assess is Volkswagen, who recently came across a slump in their financial situation and who are also beginning to loose their competitive edge. Volkswagen's relationship with the UK dates back to 1952, when the first two Beetles were sold. In 1953 Volkswagen Motors Ltd became the official UK importer, and the brand went from strength to strength. Today Volkswagen UK, as part of the Volkswagen Group, is one of the country's largest importers of vehicles, employing nearly 600 people nationwide, with the Volkswagen brand employing 174 in Blakelands alone. Volkswagen also has 260 retailers throughout the UK. Financial situation Volkswagens general out look makes it seem like a very financially stable and innovative company. However from inspecting their 2005 Annual report these innovative ideas don't seem to be enough. ...read more.

Middle

I believe new complexities in the form of electronic content should be Volkswagens main goal in innovation. For example built in satellite navigation could be a huge plus for customers and could be the difference between "yes" and "no". Consumers are becoming ever more difficult to lure into buying and along with innovative new ideas they need to increase reassurance amongst many. Volkswagen need to increase focus on the customer. In order to do this they will need to improve service processes and will need provide service beyond the every day automotive company. Volkswagen can achieve this by increasing manufacturing speed, customer Differentiation strategies and consumer needs Differentiation strategies will need to be taking into account when looking to increase competitive advantage. The idea of this is to get one or two criteria used by buyers in a market and position the business around it. Consumers are becoming ever more difficult to lure into buying and along with innovative new ideas they need to increase reassurance amongst many. Volkswagen need to increase focus on the customer. ...read more.

Conclusion

At the same time they need to be careful not to price their goods too low as this will result in low profit. Advertisement Advertisement is a huge advantage when it comes to competitive edge. With the right advertisement business's can develop and increase the consumption of a certain product. The use of the media, word of mouth and other forms of advertisement can all expose the unique selling points of a company. For Volks wagen to expose the true benefits of advertisement they will need to concentrate on interenet advertisment as this is the future. The use of email and pop up advertisement is the way forward for volkswagen. Product life cycle Product lifecycle is the theory of the development. After a period of time the product in hand will be launched into a market it gains more and more customers as it grows; eventually the market stabilises and the product becomes mature; then after a period of time the product is overtaken by development and the introduction of superior competitors, it goes into decline and is eventually withdrawn. ...read more.

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