VW Company Analysis

             Implication:.
             Difficulties to maintain the good relationship and loyalty with distributors as the volatile-earning stream.
             The increasing running expense may be favorable to New Beetle as the advantage of economical efficiency of small cars.
             Major competitors will become more dominant in the industry as they are getting larger through acquisition and strategic alliance.
             Political/Legal.
             The increasing concern of environmental issue.
             Political crises in Asian countries are on going issue, which could have impact on expansion to these markets.
             The emergence of new WTO membership. (World Trade Organization).
             Implication:.
             The environmental concern had made automakers more difficulties in the production process to meet the legislation standards.
             Law restrictions and stability of political situation in certain countries would impact the market growth rate and size.
             The new membership of countries such as Taiwan, China joining the WTO means lower government tariffs, and hence represents potential market opportunity.
             .
             Technology.
             The use of technology to allow better production process, such as increased safety, better features and longer durability.
             Advance in technology can alter the industry's landscape, making it possible to produce new and better products at lower costs and opening up whole new industry frontiers. It can also produce changes in capital requirement, vertical integration benefits, and experience curve effect via the improvement of IT technology.
             Implication:.
             Assist the industry to achieve economies of scale and break through innovation of product idea.
             Reduce the process time while improving the quality of the product.
             Distribution channels will be efficiently through high tech communication such as EDI.
             Demographic & Social-cultural.
             Ever-changing customers' preference.
             Young drivers tend to seek reputable brands to reflect their personal style and status.
             Increasing number of workingwomen.