Question

Companies face many challenges as the compete in a global market. What do you think is Volkswagen's primary challenge in competing in the United States? Why?

Answer 1

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:

1. 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.
2. 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.
3. 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.
4. 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.