Recommendation

Recommendation

Volkswagen Company should consider some proposal for the business competes perfectly in the international market. First, the company should provide high-quality products at the same price as their competitors in the market. Customers are attracted to quality and therefore when it is enhanced, they tend to develop an interest in the products (Shinn, 2017). The company should understand the economic standards of the customers in order to produce products that meet their financial demands. It would be useless to adventure in foreign markets with high poverty index and sell products expensively. For example, the United States has a prosperous economy, and an introduction of the luxurious cars would sell out, and the company would make more profit and growth. The PEST theory would be used when recommending new markets (Roy, 2010).

The political instability in the Middle East poses a challenge for the growth of the business. The countries have hefty tariffs on imported goods, and therefore the company must develop strategies to raise the high revenue, or it can make significant losses in the market (Tolbert, 2001). The company should resort to expanding in other countries, especially in the African continent, which charges low tariffs, and the still-developing (Jon, 2018). They provide a market that is free of competition from the major automobile companies in Europe. Moreover, the company should consider the customer values in its new markets. It should add value to the lives of the clients in order for the business to be successful by producing comfortable products and automobiles. The company can be in a stall mode if it does not create change in the lives by easing their movement (Atiyeh, 2016).

Volkswagen Company should focus on employing competent employees and create a perfect relationship between them and the employer in order to coordinate the activities performed in the company for sustainable development (Richard, 2016). The employees must be committed to the service delivery to the customers and ensure that they develop new ideas that are used to solve the problems facing the company. This will promote the growth of the company in the foreign market. Besides, the company must provide the conducive working environment, which is equipped with the necessary tools and technology for the production to maximize efficiency (Tolbert, 2001). The company should relate well to the social environment by considering the cultural practices in its foreign markets. This will build a strong rapport between the surrounding community and the company offer assistance in the coordination of the social impact programs (Treas, 2015).

For the company to compete effectively in the modern world of mobility, it should ensure transparency and efficiency in its operations. This will make the company utilize the full potential in the global market and address the challenges (Atiyeh, 2016). Productivity, expenditure and profit must be on balance to ensure that the company does not make losses. Additionally, the technology used in the company must be advanced in order to enhance the production of unique products that attract customers in terms of their integrity and safety (Roy, 2010). For example, the installation of the machines used in the manufacture of electric cars. The automobile is advancing and use to old methods would make the company be unsuccessful in the foreign market that requires proper planning and market analysis in order to succeed (Shinn, 2017).

Conclusion

The Volkswagen Company has ventured in different foreign markets and is competing favourably. The international market poses many challenges for the company. These include government policies in the foreign market, completion from established companies, poor communication, and social factors affecting the operation of the business. The company must analyze the market before expanding in order to avoid losses and develop solutions to the challenges. Volkswagen also tries to create positive social impacts in the areas it operates. The programs should be aimed at bringing change to the social environment and promote the products of the company in terms of marketing. The PEST theory gives the best analysis of the social impacts of the Volkswagen Company. For the company to compete in the market, it ought to produce technologically advanced products that meet the customers’ demands.

References

Anon., 2016. Clifford Atiyeh. Volkswagen Diesel Scandal, pp. 34-56.

Jon, J., 2018. The Advancement in Automobile Industry. Modern Vehicles and Environment, pp. 20-70.

Oktav, A., 2015. Experimental and Numerical Modal Analysis of Motorvehicle Industry. International Journal of vehicles, Volume 5, pp. 12-60.

Richard, P., 2016. Recommendation and Solution of Volkswagen Company. Scandals in the Diesel, pp. 20-120.

Roy, W., 2010. Tax And Revenue Policies. Annual Review, Revenue, pp. 183-203.

Shinn, J., 2017. Political Power and Corporal Control. Challenges and Solutions to the Volkswagen Company, pp. 45-60.

Tolbert, E., 2001. Competition in the Foreign Market. Psychology of Organization, pp. 84-94.

Treas, J., 2015. The positioning of the new products in the market. The new medication, pp. 45-58.