Volkswagens Business Model(Production) ● Production o During the early years, vw transformed its production network, integrating periphery plants into a global division of production o This diffusion of knowledge and technological expertise across production plants meant that the new plants could develop the best production practices and systems used in its European facilities ad-hoc basis, exploiting local idiosyncrasies such as Guan-y o Hence the strategic function of each plant operated on an sem amongst Chinese suppliers whilst integrating European learning processes into the production line http://www.economist.com/node/21558269
Volkswagen’s Business Model (Production) Production During the early years, VW transformed its production network, integrating periphery plants into a global division of production. This diffusion of knowledge and technological expertise across production plants meant that the new plants could develop the best production practices and systems used in its European facilities Hence the strategic function of each plant operated on an semi ad-hoc basis, exploiting local idiosyncrasies such as Guan-Xi amongst Chinese suppliers whilst integrating European learning processes into the production line. http://www.economist.com/node/21558269
Volkswagen Business Model(Production) o Exploiting its' first mover's advantage, Volkswagen has been able to expand further than any of its competitors a good example would be the go West and Go South Strategy implemented by Volkswagen, creating new plants in Chengdu(2007), Foshan and Urumqi(2013), the latter being the first vehicle plant in the Xinjiang region o Apart from developing its own production capacity, Volkswagen has been establishing stronger strategic alliances Shanghai automotive Industry Cooperation First automotive works inc http:/lannualreport2012volkswagenag.com/managementreport/value-enhancingfactors/marketfocus.html
Volkswagen Business Model (Production) Exploiting its’ first mover’s advantage, Volkswagen has been able to expand further than any of its competitors A good example would be the Go West and Go South Strategy implemented by Volkswagen, creating new plants in Chengdu(2007), Foshan and Urumqi(2013), the latter being the first vehicle plant in the Xinjiang Region. Apart from developing its own production capacity, Volkswagen has been establishing stronger strategic alliances. Shanghai Automotive Industry Cooperation First Automotive Works Inc. http://annualreport2012.volkswagenag.com/managementreport/value-enhancingfactors/marketfocus.html