Ansoff Matrix of Volkswagen 

Volkswagen is an automobile manufacturing German multinational company. German Labour Front founded the automobile company in 1973. Today, we’ll discuss the Ansoff matrix of Volkswagen; and its four growth matrix strategy analysis quadrants; market penetration, product development, market development, and diversification of Ansoff matrix business examples.

Elements of Market Penetration Strategy of Volkswagen

• Focuses on improving the customer satisfaction level and establishing brand loyalty
• Offers a uniqe and safe driving experiences to the customers
• Strong commitment to environmental sustainability and launching hybrid and electric vehicle models
• Providing after sale service to the customers
• Long term partnership and relationship with customers

Top Selling Markets and Geographical Regions of Volkswagen

• Western Europe – 288600
• Eastern and Central Europe – 47200
• North America – 95300
• South America – 57700
• China – 374100
• Asia Pacific – 34800
• Africa, Middle East – 36400

Latest and Best Collection Offer of Volkswagen

• Golf model – 289000
• Lavida – 290000
• T-Roc – 312000
• Q5 – 332000
• Jetta – 362000
• Pollo – 441000
• Passat – 490000
• Tiguan – 499000

The Ansoff matrix of Volkswagen would analyze the four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification. Here are Volkswagen Ansoff matrix company examples as follows;

Ansoff Matrix of Volkswagen

Let’s discuss the four growth matrix strategy analysis quadrants in the Ansoff matrix of Volkswagen as Ansoff matrix company examples; they’re as follows;

Market Penetration Strategy of Volkswagen

The market penetration growth strategy quadrant in the Volkswagen Ansoff matrix business example as growth matrix strategy has the lowest risk. It is because here the German automobile brand sells its current products and services in the existing customer market. However, the automotive market is growing, and the market penetration growth strategy is possible.

I-Vast Diversified Portfolio

Volkswagen has established a vast and well-diversified product portfolio comprising of wide range of automobiles, electric vehicles, and financial and logistics services. It allows the automotive brand to target various segments of the existing customer market with its current product and service portfolio.

II-Marketing & Promotion

Volkswagen runs various types of aggressive marketing and advertisement campaigns for the promotion of its existing automotive products and services. The company employs various media channels; online and offline to penetrate the existing customer market.

III-Motorsports

Along with manufacturing racing automobiles, Volkswagen also organizes motorsports cups and tournaments in various countries and participates in them. The automobile brand has successfully won motorsports tournaments and so have its automobiles for different teams. It further highlights the brand name and automobile model of the company.

IV-Sponsorships

Volkswagen also engages in sponsoring various types of sporting events; it offers great brand exposure to the company. Many new customers become familiar with the brand name of the company; ultimately, it increases the company’s sales.

Market Development Strategy of Volkswagen

The market development growth strategy quadrant in the Volkswagen Ansoff matrix business example as the growth matrix strategy has a bit higher risk than the market penetration strategy. It is because here you expand your market and offer your existing automobile portfolio in the new market. However, you don’t know the culture and response of the new market; that’s what makes it riskier.

I-Market Expansion

According to an estimate, Volkswagen is operating its automotive business in over 150 countries across the globe. The automobile brand has so much variety in its portfolio; it helps the brand to easily enter new markets and offer its existing products and services.

II-Acquisition & Subsidiaries

 Approximately more than 342 subsidiary automobile brands are operating under the umbrella of Volkswagen. Such a vast portfolio helps the company to enter new markets and geographical regions and sell its vehicles under different brand names.

Product Development Strategy of Volkswagen

The product development growth strategy quadrant in the Volkswagen Ansoff matrix business example as the growth matrix strategy has higher risk than the market penetration strategy. It is because here you launch a new automobile model in the existing customer market. You would have to run new marketing and promotional campaigns for the new product and it makes it riskier.

I-Electric Vehicles Development

The trend of electric vehicles is growing in the customer market and Volkswagen invested approximately 48 billion USD in 2018 for the production of battery supplies. The company is manufacturing new electric automobile models to keep up with the growing trends and demand of the customer market.

II-Research & Development

Volkswagen allocates a significant amount of capital resources to research and development for the production of autonomous vehicles, and electric, and flying automobiles. The R&D investment helps the company to develop new automobile models with unique and innovative features to attract the attention of the existing customer market.

Diversification Strategy of Volkswagen

The diversification quadrant in the Volkswagen Ansoff matrix business example as growth matrix strategy is the most risky growth strategy of all three previous growth strategies. It is because here you launch a new automotive product or service in a new customer market. You won’t know how your new market will react to the new product or food items.

I-Horizontal Diversification

Volkswagen has been successfully increasing its customer market share and product portfolio ever since its foundation. It has helped the company to achieve various awards and earned the trust and confidence of the global customer market. Currently, the company is achieving efficiency in the production of autonomous and electric vehicles; flying vehicles will be next product in the future.

Conclusion: Volkswagen Ansoff Matrix Company Examples |Growth Matrix Strategy Analysis 

After an in-depth study of the Ansoff matrix of Volkswagen; we have realized that Volkswagen is the world’s leading automobile manufacturing brand. If you are learning about the Volkswagen Ansoff matrix company examples; then you should keep in mind the abovementioned four growth matrix strategy quadrants; market penetration, product development, market development, and diversification.