Rank the 5C’s elements and Porter’s Five Forces in order of influence
on VW
5C’s
Customers
Customers are the most important aspect in a company such as Volkswagen, as if they do not have
anyone to sell their products, they will not be able to create revenue, and this will affect their
production and payments, as they won’t have any money to produce more cars and to pay to their
suppliers. Also, without customers they wouldn’t be able to pay their employees and make any profits
for theirself. Basically, the company wouldn’t be able to be successful without customers. These also
affect so much as if they decide which company buy a car from and if they have enough money to
what they’re looking for.
Competitors
Competitors would be the second reason why Volkswagen has been so successful, as no company
stands alone in serving and satisfying the needs of a customer. The competitive environment makes
Volkswagen develop new strategies, new cars, be more innovative and use the latest technology in the
market. Basically, it makes the company improve, by trying to create the best of it on every aspect.
Also, by having competitors Volkswagen is able to take a different point of view, which will make
them develop better strategies and satisfy the expectations of consumers.
Climate
Climate would be in third position as it consists of factors affecting consumers purchasing and
spending power. Demographic data helps in preparing geographical marketing plans, which therefore
means that they create plans and strategies to invest more money or less on different markets, and
therefore this will have a direct impact on market place. Also, it empowers technological change
which changes rapidly and creates new opportunities to enter to new markets and make customers
proud of those new changes, which are safer and cleaner automobiles.
Collaborators
Collaborators would be in forth position as these are the suppliers and distributors which are linked to
the company. These provide resources to the company such as prime material, and some components
needed to create the car among others. The development in the suppliers environment have a
substantial impact on the marketing operations of the company as it can lower their supply costs and
increase product quality to gain competitive advantage in the market.
Company
The company by itself has a name, and if this name is publically damaged will make the company fall
in a long term, as people will want always to see that they’re driving not the safest but the best car in
the industry. They are representing to other people the company by buying and driving their cars, and
if they see that the company is cheating on some stage, it will create a bad influence between
consumers and the company in a long term. The actions of a company do affect the interest of other
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