VW's Resources Assignment Example | Topics and Well Written Essays - 500 words

VW's Resources - Assignment Example Based on the market research, VW should disseminate the information gathered to the research and development department so they can make the necessary adjustments in the automobile designs of VW. Since engineering is the core technical strength of VW, they should further enhance this strength by working hand in hand with the research and development team. Aside from the engineering strength of VW, another advantage of VW over the other automobile manufacturers is their heavy investment in plant and equipment. This, together with their gains in engineering can help overcome their weakness in terms of product development. Marketing and sales is considered an important capability in the car industry. One notices though that VW does not fare well in this area. The first step that VW should do is to redefine its target market. One probable reason why they do not perform as well as their competitors in this aspect may be because the strategies that they are employing are not appropriate to their target market. If VW will be able to specifically identify its target market, it will know how its characteristics and needs. The proper marketing and sales strategies will then be designed to answer to their target market’s needs. VW must look into the possibility of enlarging its auto dealerships nationwide and increasing their sales people. Increasing the sales people is not enough, they should also give them the right training to boost their sales. A review of VW’s marketing and sales pitch must be undertaken to determine its effectiveness. Another way to increase VW’s sales is to offer m ore incentives to their dealers and sales people whenever they reach their quota. Since VW’s strength is in the emerging markets, they should focus their attention in these markets. As of 2010, China is the largest market for the VW brand having a 33% market share worldwide (Soh, 2010). Given that VW has always had a weak North