Academic Master

Environmental Science

Volkswagen Diesel Scandal

1.1 Customers

After the scandal of ‘diesel’ emission Volkswagen has negative impact on the customers. Many of the customers switched from the Volkswagen to other brands (Dowling, 2016). The profit of Volkswagen has tumbled nearly 20 % in 2016 because the customers switched from this brand. In order to remove the negative impact on the customers Volkswagen has written to all consumers to invite them for making dealership of technical measures which have applied to their vehicles (Volkswagon, 2017).

1.2 Suppliers

Suppliers of Volkswagen who have significant sales with the company were stressed after the scandal of diesel emissions. Suppliers had to made more advanced technology in order to limit the emission of diesel vehicles. Further suppliers have to provide the electronic and mechanical components to Volkswagen so they get afraid after the scandal as they are also affected by this scandal (Sharman, et al., 2016)

1.3 Public’s

According to Chossière, et al. (2017) public health is affected by the air pollution so the emissions of radiations from the vehicles so the Volkswagen has negative impact on the health of public. After the scandal of diesel emissions Volkswagen has upgraded the software which is designed in way to reduce the impact of emissions on the environment. Directors of Volkswagen have discussed that how the negative impact on public could overcome in order to regain the position of company. As the profitability of company depends upon its sustainability and sustainability is possible only when the company has no negative impact on the society and welfare of people so the Volkswagen is trying to be the environment friendly.

1.4 Competitors

Volkswagen has supplied 80,000 affected cars in Australia. Competitors took advantage of it as they upgraded their software and many of customers attracted toward other brands (Stein, 2017). Subaru introduced the fresh vehicles in the market with overlapping price and took benefit for the scandal at Volkswagen (Shah, 2015).

The Australian Competition and Consumer Commission has complaint against the Volkswagen in the Federal court. So, Volkswagen paid billions of dollars to the court for civil penalty (Stein, 2017).

2.0 Macro Environment

2.1 Technological Environment

Australia is most technological advancing country as the Australia depends upon the technical sources. Shelton et al. (2016, p. 172) argued that technology is the central to the existence of the human beings so it is very important for the Australia in the current situation and for the future. Therefore, Volkswagen has the technological pressure in order to sustain in Australia. Furthermore, there is high pressure to not harm the environment by the emissions of diesel. So, the technology in Australia is very advanced and has no negative impacts on the environment.

2.1 Political Environment

Political system is stable in Australia so the company has less pressure from political environment. Chacko & Davis (2017, p.27) argued that Australia is democratic, modern and developed and stable nation therefore with the stable political system it is a good place for the Volkswagen to run its business.

2.2 Economic Environment

Economic system in Australia is strong, competitive, safe and low chances of risk. So, it is the good for the foreign companies and domestic to operate their business. Healthy economic and political system ties with South and North America, Europe unions as well as Africa and middle East further support the economy of Australia. Moreover, economic environment is sustainable for the Volkswagen company

2.3 Cultural Environment

Australian nation is well established and have new influences. Moreover, people of Australia are educated and trendy. As they want uniqueness in their life. They want to have luxury life with luxurious things. Furthermore, Australian are united and have shared value therefore to understand their culture and meet their needs is an easy task for the firms. Therefore, cultural environment in Australia is good sign for the Volkswagen to do its business operations.

3.0 Customer Profile

Currently Volkswagen is targeting consumers from all over the world as Volkswagen is providing auto cars to customers. Volkswagen targets young people that appreciate quality, precision and technology. The marketing campaign of company comprised of technical features. After the scandal of diesel emissions company is making efforts to make the advances in technology diesels in order to satisfy their consumers. Recently Volkswagen discovered the problems with cars so they resolved the problems by implanting consumer-based approach for designing the new vehicles. Moreover, VW is targeting the customers who are associated with fun, Polo and Golf. Volkswagen is also targeting those consumers who are interested in innovative products (Systyi, 2014). Volkswagen faces heavily competitive and difficult industry outlook as there are many automakers companies worldwide. The Volkswagen targets psycho graphic customers who are motivated towards transportation. They want to go out outside in a car which redefines their life styles and that’s why Volkmann redesigned the car to attract male customers as the customers for Volkswagen are highly educated and they know the trends of cars

Figure 1: Consumer Profile of Volkswagen

Gender Targeting highly self-conscious and status conscious males and females People who want to travel, enjoy the freedom of travelling, like to hang out and are always willing to take risks without fear.
Age Teenagers and middle-aged people who like to travel a lot on their own vehicle Mostly teenagers who want to show off by showing their new or extra advanced car to their colleagues or friends.
Target Area They are basically targeting people from around the world who want to explore new meanings of travelling People from around the globe specially the one from the developed countries because they are more likely to afford a Volkswagen

Through the table above it can be understood that VW’s potential customers are the one who are outrageous, like to travel a lot and especially who are status conscious because they want to show off their VW to their friends or colleagues in office or university. Typically, those people are VW’s customers who like sports and those who are attracted towards buying branded cars.


Chacko, P. & Davis , A. E., 2017. The natural/neglected relationship: liberalism, identity and India–Australia Relations. The Pacific Review, 30(1), pp. 26-50.

Chossière, G. P. et al., 2017. Public Health impacts of Excess NOx emissions from Volkswagen Diesel Passenger Vehicles in Germany. Environmental Research Letters, 12(3), pp. 34-45.

Dowling, J., 2016. Still no money for Volkswagen Customers in Australia even though US Owners get compensation. [Online]
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[Accessed 31 August 2017].

Shah, R., 2015. As Volkswagen loses, other Automakers could benefit. [Online]
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[Accessed 31 August 2017].

Sharman, A., Wright, R. & Inagaki, K., 2016. Suppliers see silver lining in the Volkswagen scandal. [Online]
Available at:
[Accessed 31 August 2017].

Shelton, J., Martek, I. & Chen, C., 2016. Implementation of Innovative Technologies in Small-Scale Construction firms: Five Australian Case Studies. Engineering, Construction and Architectural Management, 23(2), pp. 171-191.

Stein, L., 2017. Volkswagen diesel scandal: ACCC sues over dodgy emissions claims. [Online]
Available at:
[Accessed 31 August 2017].

Systyi, D., 2014. Marketing Audit of Renault & Volkswagen. [Online]
Available at:
[Accessed 31 August 2017].

Volkswagon, 2017. Volkswagen Emission Information. [Online]
Available at:
[Accessed 31 August 2017].



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