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Arguments for developing a new range of self-driving cars: - The market for self-driving cars is predicted to grow - VW hope to exploit this through its partnership with Gett - Edexcel - A-Level Business - Question 2 - 2018 - Paper 2
Question 2
Arguments for developing a new range of self-driving cars: - The market for self-driving cars is predicted to grow - VW hope to exploit this through its partnership ... show full transcript
Worked Solution & Example Answer:Arguments for developing a new range of self-driving cars: - The market for self-driving cars is predicted to grow - VW hope to exploit this through its partnership with Gett - Edexcel - A-Level Business - Question 2 - 2018 - Paper 2
Step 1
Arguments for developing a new range of self-driving cars:
Answer
The development of a new range of self-driving cars aligns with market trends, as consumer preferences are changing towards self-driving technology. VW should take advantage of its partnership with Gett to tap into this growth market and enhance customer convenience. As traditional diesel cars decline in popularity, shifting focus to self-driving vehicles can provide VW with a competitive edge, classifying this move as new product development according to Ansoff's matrix.
Step 2
Arguments for improving productivity:
Answer
Improving productivity is crucial for VW to reduce unit costs by effectively spreading fixed costs over a larger output. This reduction in unit costs would enable Volkswagen to offer more competitive pricing. Investment in new technology can also enhance capital productivity, allowing VW to modernize its operations. Given the significant workforce reduction of 30,000 jobs, focusing on the productivity of the remaining staff becomes essential to meet market demand efficiently.