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What Are The Core Competency And Sustainable Competitive Advantage?

Satisfactory Essays

Volkswagen goal is to become the ecological and economical leader in the automotive industry and to be the world’s leading automaker by 2018. Volkswagen has four main objectives through which they will achieve their goals. • Enhance customer satisfaction and quality by the use of smart innovation and technology. • Focus more on large growing markets and exceed the sales up to 10 million cars per year. • Ensure financial safety and ability to function in crisis by reaching profitability before taxation to 8 percent. • Building a powerful team of employees all over the world. ( Volkswagen, 2011, para. 1,2) Their goal is to focus on environment protection and ensure that the right products are placed in challenging markets. Apart from that, they want to boost the profitability and at the same time enhance the flexibility and efficiency of production. Moreover, they aim to increase their customer base and also delivering better satisfaction to the current customers. (para. 3, 4) Core Competency and Sustainable Competitive Advantage The core competency of Volkswagen is their engines, TSI (Turbocharged Stratified Injection) which is used for petrol cars and TDI (Turbo Direct Injection) for Diesel. The core competencies of the company lead to sustainable competitive advantage. The engines are smaller, lighter and more fuel efficient as it increases power to weight ratio. They are designed in such a way that it delivers maximum torque at low engine speed which gives double

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