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Hi, need to submit a 4500 words paper on the topic Business Analysis: Joint Venture of VW in China.
Hi, need to submit a 4500 words paper on the topic Business Analysis: Joint Venture of VW in China. Joint Ventures can only be nurtured by transparent and effective communication between the partners. Volkswagen two joint ventures in China started off on an excellent note and made VW the market leader in the passenger car and taxi segments. However, with the opening up of the Chinese market and the coming of new foreign players, VW is incurring a loss of market share and sales. The reasons for the debilitating condition of Volkswagen may also include its problems with its Joint Venture partners. There appears to be a lack of communication and presence of discordant vision of its partners that is preventing VW from reaping the benefits of an expanding Chinese economy. Volkswagen is Europe’s largest Car Manufacturer, and world’s fourth biggest, after GM Toyota and Ford. with a presence in countries like France, UK, and China. It has followed a strategy of penetrating the international market with strategic partnerships at the local levels. Volkswagen has been following a policy of global expansion since the early days of liberalization. It was among the first international organizations that made a foray into the Chinese market. With the help of joint ventures, it started its manufacturing operations in China and benefited from the sales channels of its joint venture partners. Volkswagen had penetrated the market and established a near monopoly in the passenger cars and taxi segment. Its approach had been dictated by a policy and practice of continuously presenting the market with carefully segmented cars, and promoting an aggressive growth. The two joint ventures of Volkswagen in China have been doing extremely very well till recently. With the increase in the material costs, aggressive pricing and enhanced competitive presence, Volkswagen’s share have dwindled to a mere 18%, down from its near monopoly in the passenger and taxi segment of the Chinese market.
