Volkswagen Strategy 2025: Shifting Gears in Disruptive Times
(9 pages of text)
Case (Pub Mat)
In 2018, Volkswagen Group’s newly appointed chief executive officer renewed the company’s commitment to Strategy 2025, an ongoing plan intended to radically transform the German automaker. Volkswagen was being challenged by tectonic changes in the automotive industry, including the phasing out of the long-standing internal combustion engine, ongoing digitization, the entry of new competition from technology companies, the introduction of electric vehicles, and the launch of ride-sharing applications. Strategy 2025 was designed to reshuffle the company’s existing formal and informal structures and restructure the automaker into a nimble, agile, and innovative corporation ready to face the realities of mobility in the digital age. The new chief executive officer faced huge expectations concerning the effectiveness and sustainability of Strategy 2025. Was the automaker doing enough to transform into a competitive mobility company?
This case is intended for use in undergraduate and graduate courses and in executive programs focused on how incumbent firms can stay relevant during times of major industry disruptions. Ideally, students will already have some knowledge of basic industry analysis and strategy. After completion of the case, students will be able to
- understand the corporate-level, business-level, and management-level challenges that arise from disruptive megatrends;
- understand the drivers and challenges of strategy transformation for an incumbent firm that faces a major disruption;
- develop an organizational renewal strategy for an incumbent firm; and
- execute a transformational plan to deal with industry disruption.
Transportation and Warehousing
Germany, Large, 2018
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