Audi SWOT & PESTLE Analysis

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.

The remaining section under "Strengths" is available only in the 'Complete Report' on purchase.

Weakness

Opportunity

Threat

Political

Economic

Social

Technological

Legal

Environmental

1. Shift towards electric vehicles to reduce carbon footprint: Audi AG aims at transforming mobility without compromising on quality, enhancing driving pleasure, and making it suitable for everyday use. To meet the mounting demand for electric vehicles, Audi has already made the first move with the launch of its first electric car in 2019, the Audi e-tron. Audi expects to launch 30 electrified models by 2025, out of which 20 will be fully electric vehicles, with zero CO2 emissions when operated locally in electric mode. To reduce its environmental impact Audi aims at reducing its carbon footprint by 30% across the fleet's intact life cycle, by 2025. Further, the company also wants to achieve a zero-carbon emission by 2050. As per the statements by the management, by the mid of 2020-2030, Audi expects 40% of its global annual sales from its electrified vehicles.

2. Use of new technologies to improve the sustainability of supply chains: AUDI AG intends to use new technologies to further increase transparency and traceability in the supply chains. Audi Group is in the process of steering the use of Blockchain technology in its global and complex supply chain. One of many advantages of this technology is it provides deeper insights about the origin of minerals used in vehicle production. For instance, it helps in obtaining information about the provenance of cobalt that is used in lithium-ion batteries for electric vehicles. Since 2017, Audi has been an active member of the Global Battery Alliance whose aim is to address the protection of human rights, maintaining social standards in the extraction of the raw materials, and devising solutions for the reuse of lithium-ion batteries. These pilot projects are a source of creating more transparency and security in the supply chain. Also, the company focuses on responsible sourcing of raw materials as a prerequisite to achieving sustainable mobility.