Case Analysis: Volkswagen AG Navigates China


This module demonstrated that "going global" is not only a matter of market potential but needs to be understood in the context of shifting global dynamics, company capabilities and competitive situation.

This recent case showcases the competitive dynamics of the automobile industry in mainland China. Volkswagen is a Germany-headquartered car manufacturer that has been very successful at expanding internationally. With growth opportunities in the industrialized countries becoming more limited, executives in the automotive industry are looking to emerging markets for new opportunities.

Procedure
1.Go to the Student Companion Site for Global Marketing Management (text).
2.On the left, click on Web Cases and then click on Cases in the center of the screen to download the cases provided with the textbook in a WinZip file. (Note: If you do not have WinZip, you can download it free.)
3.Unzip the case studies and then access Case 7, "Volkswagen AG Navigates China." (Note: The cases are in Adobe Acrobat PDF format. If you do not have Adobe Acrobat Reader, you can download it free.)
4.Read the case carefully.
5.In an MS Word document, answer the following questions:
a.What factors have contributed to making China an attractive market? Overall? For the automotive industry?
b.What competitive advantages does Volkswagen AG bring to the Chinese market?
c.How have the marketing challenges in China changed between the late 1990s and the present?
d.Pick one of the companies mentioned in the case study to answer these questions: If you were one of the (non-Chinese) competitors to Volkswagen in the Chinese market, what would you see as your potential competitive advantages or issues? How might you try to address them through your marketing approach?