Answer: Companies face challenges in global
market because there are already great players in that market that
have their market share and brand image. People do not easily adopt
foreign brands until they are very good.
Volkswagen's primary challenge in competing in the United
States- Few challenges are as following:
- Volkswagen's emission issue spoiled its image in the US market.
It programmed turbochagred direct injection (TDI) diesel engines to
activate their emissions control during lab emission testing which
is against the US standards. Company made sorry for its emission
issue.
- Volkswagen was involved in unethical issues. One internal
survey was done that revealed that 50 people including software
engineers and key people were aware about the emission
scandal.
- In the year 2014, Volkswagen was the world's second largest
automaker in automobile industry after the Toyota motors but in the
year 2015, it admitted the emission scandal which caused company to
suffer huge loss and cost burden.
- There are already many automobile brands in USA, that are the
direct competitors of Volkswagen. Volkswagen is trying to gain the
trust again by telling the emission issue as opportunity.