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Audi SWOT & PESTLE Analysis

ID : 52798953| Oct 2020| 20 pages

COMPANY PROFILE -Audi AG

Business Sector :Automobile, Consumer Discretionary

Operating Geography :Germany, Europe, Global

About Audi AG :

Audi AG is a German automobile manufacturer that designs, engineers, produces, markets and distributes luxury vehicles. The AUDI AG stands for sporty vehicles, high build quality and progressive design – for “Vorsprung durch Technik.” The Audi Group is among the world's leading producers of premium cars. Audi is a member of the Volkswagen Group and is headquartered at Ingolstadt, Bavaria, Germany. The Audi Group sells vehicles of the Audi and Lamborghini brands as well as motorcycles of the Ducati brand internationally through its own sales companies or those belonging to the Volkswagen Group and in partnership with local importers. In the 2019 fiscal year, AUDI AG had an average of 61,415 employees, as compared to 61,289 employees in 2018.
Every year Audi and its products are presented with prestigious awards from both national and international juries. In 2020 the company has been recognized as World Car of the Year, Best Cars, the German Design Award, and even International Engine of the Year. It also won 5 out of 10 trophies awarded at the “Autonis” Awards ceremony on 21st Oct 2020. Besides, the Audi Denkwerkstatt was once again among the best digital innovation hubs in a German company.
Audi’s mission statement reads “We act purposefully, systematically and with our full efforts – in other words, consistently. That is why our mission is “Consistently Audi.” Audi’s vision is to “Unleash the beauty of sustainable mobility.” The USP or Unique Selling Proposition of Audi Group sprawls in being among the world’s leading producers of premium cars known for its luxury, comfort and excellent engine performance

Audi AG Revenue :


EUR 55,680 million - FY ended 31st December 2019 (y-o-y growth of -6%)
EUR 59,248 million - FY ended 31st December 2018

Competitive Analysis of Audi AG

SWOT
PESTLE
The SWOT analysis for Audi AG is presented below in a matrix followed by detailed analysis:
StrengthsWeaknesses
1. Strong brand value of Audi globally
2. Continuous focus on innovation to solve unmet customer needs
3. Adoption of Virtual Reality to enhance customer experience
4. Taking the lead in the transition to electric mobility
5. Fostering a culture of Employee Focus
1. Product-related lawsuits worldwide
2. Losses on fine and settlement charges for violation of environmental laws

OpportunitiesThreats
1. New sales opportunities due to emergence of electric vehicles
2. Recovery and growth of Chinese luxury car market in the post COVID-19 era
1. Trade dispute between China and U. S
2. Technology and cyber security risks
3. Change in tax policies by government
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Audi AG

Strength

1. Strong brand value of Audi globally: The brand value of a company is what image the company has created to differentiate its product, and hence position, in the eyes of the stakeholders. Audi’s logo, products, communication campaigns, core values are very distinctive from the competitors. The brand is unique in its range, having the capacity to showcase luxury, style and comfort all together in a single vehicle. The German company provides quality and sophisticated products, a country that is globally renowned for their excellence in car manufacturing. The brand is a symbol of reliability for the customers. Audi is the second most demanded brand for luxury cars in China, the world’s largest auto market, after BMW vehicle sales surpassed Audi in February, 2019. In China, the company handed 690,083 cars of the Audi brand over to customers in 2019 and set another record for that market.

2. Continuous focus on innovation to solve unmet customer needs: Audi is committed to bring in innovation in their business and it is quite evident from the fact that it registered more than 1,200 patents in 2019. In the area of autonomous driving, Audi made its position to the top in recent years as stated by the German Patent Office and the European Patent Office based on the results of its studies on car manufacturers. Audi Business Innovation GmbH (ABI), a 100 percent subsidiary of Audi, is completely dedicated for developing innovative technologies. ABI aims at finding solutions for current and future customer problems in an efficient and sustainable manner. Energy and sustainability are prime areas of consideration as the company focuses on business model development. ABI exerts customer reviews and idea suggestions in order to help the company substantiate factors like compliance to pay, market requirements, and potential take rates and come up with different product development ideas together in different Group projects. Thus, by frequently interviewing fleet managers or testing digital products and services directly with customers, Audi devises innovative product development ideas.

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Weakness

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Opportunity

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Threat

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Major Competitors :

  • BMW
  • Mercedes
  • Jaguar
  • Nissan
  • Toyota
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Check Out Analysis of Other Relevant Companies

TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in Audi AG Analysis Report

1. Audi Financial Report 2019 - https://www.audi.com/content/dam/gbp2/en/company/investor-relations/reports-and-key-figures/annual-reports/EN_Audi_Financial_Report_2019.pdf

2. Audi AG: Company Profile and News - https://www.bloomberg.com/profile/company/NSU:GR

3. Audi Sustainability Report 2019 - https://www.audi.com/en/company/sustainability/downloads-and-contact/sustainability-reports.html

4. Audi launches Virtual Reality technology in dealerships - https://www.audi-mediacenter.com/en/press-releases/audi-launches-virtual-reality-technology-in-dealerships-9270

5. Artificial Intelligence better than humans? - https://www.audi.com/en/experience-audi/mobility-and-trends/autonomous-driving/artificial-intelligence.html

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Audi SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2020). Audi SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/audi/ [Accessed 02 Dec, 2020].

In-text: (SWOT & PESTLE.com, 2020)

Copyrights and Disclaimer

Audi AG SWOT and PESTLE analysis has been conducted by Shalmali Chakraborty and reviewed by senior analysts from Barakaat Consulting.

Copyright of Audi AG SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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Audi SWOT & PESTLE Analysis
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