What are Volkswagen’s Competitive Advantages?

Volkswagen is a company that everyone must be aware of in the Automobile industry. Over the years, the company has cemented a strong presence in the international market. However, the situation did become quite tough with the pandemic situation in 2019, where the automobile industry took a huge blow. Despite this, the company still managed to survive due to its competitive advantages in the market. What are Volkswagen’s Competitive Advantages?

What are Volkswagens Competitive Advantages?

Volkswagen and its competitive advantages 

Volkswagen, as of now, has become a well-known name in the automobile sector. Despite the diesel scandal that it faced in 2015, it still managed to thrive and survive in the industry. 

Since 2019, the automobile industry has been in a tough state due to inevitable losses caused by lockdowns and other such situations. However, despite this, the brand has somehow still managed to keep itself in a great position in leading markets like the US and China with their Audi car brand becoming one of the top sellers!

But how was this possible? Despite facing difficult situations, the company managed to sustain itself pretty smoothly due to the competitive advantages that it held over others! What are Volkswagen’s competitive advantages? Let’s have a look! 

Research and innovation

No matter what the industry is, as long as you have something unique and innovative on the selling plate, you will stand out from the crowd! The same is the situation with Volkswagen. 

With the automobile industry growing intensely competitive, it has become a necessity to bring something new and different to appeal to the audience. 

Every year, Volkswagen invests a large sum of money in innovating and developing their products, making them technologically advanced and appealing to the people. 

Global reputation

Having a strong global presence could be a big advantage for any brand. Their strong global reputation makes them shine in people’s eyes. It makes it easier for them to connect not just with customers but also with other people in the industry. 

Over the years, Volkswagen has successfully made a strong global presence across the world. They maintained this strong presence through their manufacturing and distribution network. 

The company has formed partnerships with many other companies and sells its products to more than 150 countries. This strong global reputation has undoubtedly helped them attain a competitive edge over other brands! 

Strong supply chain

To produce a consistent and great quality product, the supply chain needs to be operated very smoothly. This is one of the other reasons for Volkswagen having a strong competitive edge over others.

The company gets its raw materials from thousands of suppliers across the world. This has created a strong supply network chain for them. To keep this chain strong and sustainable, they make sure that their engagement and partnership with their partners stay strong and deep. 

Customer Service and Satisfaction 

Volkswagen is a company that focuses on all aspects of customer service. From being technologically advanced to a strong supply network, the company makes sure to satisfy its customers in every way. 

This has allowed them to attain a high level of customer loyalty. Their product range is highly customer orientated, helping them in keeping their high level of customer loyalty.

Brand reputation

The popularity of a brand can also make it visible to a larger audience. This could be seen in the case of Volkswagen too.

Volkswagen highly focuses on customer satisfaction, product quality, innovations, and marketing. This has, in turn, helped the company in creating a strong brand image. 

This strong brand image or reputation gives it a competitive advantage over other companies, especially over the new ones. 

Large product portfolio

One of the main reasons for Volkswagen to have a competitive advantage in the industry is its wide variety and diversified products. Their large product portfolio helps them in maintaining demands and sales even during difficult phases. It also helps the company to reach customers from many sectors and backgrounds. 

Presently, there are nearly 12 brands under their portfolio which include cars like Audi, Skoda, etc. 

Human resources

A talented human resource can prove to be a huge boon for the company. Every year, the company invests a lot in its employees and their career development. By doing this, they even make sure their employees are focused and motivated to work harder. 

Strong business model

Apart from all the points mentioned above, a strong business model is also a point that can be added to the list of competitive advantages. Volkswagen’s business model is quite strong with 12 brands under them and they have made sure to make it even bigger and stronger by focusing on innovation and research,  supply chain development, and strong partnerships. 


Volkswagen is one of the most known names in the automobile industry. The reason for this is the competitive advantage that it holds over the others. 

These competitive advantages include innovations, customer satisfaction, and a strong supply chain. These advantages have even kept them in a stable position despite the difficult situation that the industry is going through! Hence, one can quite clearly get why they are at the top! 

What are Volkswagen’s Competitive Advantages?

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