Marketing and Strategy
Course Work One
Vauxhall Strategic Position
Peiman Heidarzadeazar
Word Count: 1808
Table of Content
Content
page Numbers
1.Introduction
1
2. Literature Review
4
3. Situational Analysis of VAUXHALL
6
Summary
9
Reference List
10
Appendix
13
1. Introduction
In this report, we will explore the strategic position of VAUXHALL MOTOR LTD, examining its
company background, strategic approach, and framework along with underlying rationales. The
exploration will extend to a critical literature review of current perspectives on strategy and digital
strategy. Additionally, a comprehensive critique will be conducted on four environmental models:
PESTLE, Porter Five Forces, VRIO, and Mendelow Matrix.
Chapter three will focus on the analysis of VAUXHALL's strategic position using the mentioned
environmental models, ending in the creation of a SWAT chart which will provide a holistic view of the
company's strengths, weaknesses, opportunities, and threats.
1.1.
Overview
1.1.1 Vauxhall background
Founded in 1857 by Alexander Wilson, Vauxhall began as a pump and marine engine manufacturer
(O'Cean,2023). The company underwent a transformative shift in 1903, marking its entry into the automotive
industry with the production of its first car. Over the years, Vauxhall evolved into the UK's oldest surviving car
brand, achieving key milestones and establishing itself as a respected automaker (O'Cean,2023).
1.1.2 Strategy approach
Vauxhall underwent a strategic shift, recognizing the unsustainability of its brand positioning (Fleming,
2019). Despite successful pricing strategies, the company launched a new strategy in 2020, focusing on
promoting its British identity and increasing market share for cars and vans in the UK. Additionally, Vauxhall
emphasizes corporate social sustainability, aiming for continual environmental and energy performance
improvement (Cropley, 2020).
1.1.3 Framework & rationale
Vauxhall's strategic framework involves a comprehensive approach, analyzing elements like market
focus, product development, and operational efficiency (about Vauxhall, 2023). The rationale behind this
strategy includes promoting British identity, launching fresh models, and implementing post-Brexit marketing
initiatives for ambitious growth (Cropley, 2020).
2. Literature Review
2.1 Current thinking on Strategy
‘The commonplace word "strategy", first came into use to understand military affairs (Freedman, 2017).
Freedman (2017) explains the strategy by examining its historical roots applying in wars, business, politics and
revolution. He emphasizes, strategy is a comprehensive and continuous process, and involves a broad
perspective of various aspects of anticipated future situations (Berni and Zurich, 2023). In similar viewpoint
Barad (2017) explains strategy as a high-level plan trying to attain one or more goals in an indeterminate
situation and including various skill subsets as tactics, siege craft, logistics.
But in other studies by Jonson et al. (2017, P. 4), in exploring Strategy book, says strategy is defined as the
long-term direction of an organization and provides more definite situations for strategy. Jonson et al. (2017, P.
18) explains strategy from context, content and process aspect, also considers Strategy from corporate, Business
and functional level. Besides Jonson et al. (2017, P. 21) names different lenses to look at strategy like: Strategy
as a design, experience, variety and a discourse. Same as Jonson et al. Dincer (2020) not only provides same
academics definition and academics as Jonson et al. but also considers contrary view of points and investigates
more suspending view of points to strategy and says: ’On the contrary, Farjoun considers that the mechanistic
perspective is limited and makes a contribution from a dynamic and organic view. ... It maintains that while the
mechanistic perspective for the formulation of strategies is discrete, directional, and differentiated, the organic perspective
is dynamic, uncertain, interactive, and integrating’ (Dincer, 2020, Para. 1)
2.2 Digital Strategy
Digital strategy refers to a comprehensive plan that organizations develop to leverage digital technologies.
It involves the thoughtful use of technology to transform various aspects of an organization, including
operations, customer experiences, and overall business models. Scholars emphasize the importance of
designing and implementing effective digital strategies small, medium and large enterprises (Schmid and
Becker, 2020).
Academic studies contribute to understanding digital strategy through systematic literature reviews and
empirical analyses. These works explore the evolution of digital transformation in business and management,
examining its impact on sales, communication channels, and customer interactions (Kraus et al., 2021).
The convergence of information systems and strategy domains under digital business strategy is also a
focal point of research, emphasizing the interconnectedness of technology and strategic decisions ( Bharadwaj,
A. et al. 2013).
2.3 PESTEL, PFV, RBV and VRIO
2.3.1
PESTLE
PESTEL factors are to forecast macro-environment on different possibility scenarios. Yet it is not the only
framework. ‘PEST’ and ‘STEEPLE’ frameworks are also categorized environmental factors which come by
key types (Jonson et al., 2017, P. 34). ‘STEEPLE” considers ethical dimensions aswell (Indeed Editorial
Team, 2023). Despite the fact the PESTEL simplifies understanding the business environment yet it may
cause ‘paralysis analysis’ due to too much data taken and can be hard to be repeated in regular bases to track
environmental changes (PESTEL analysis, 2023).
2.3.2
Porter Five Forces
Five Forces analysis can help companies assess industry attractiveness, how trends will affect industry
competition, which industries a company should compete in—and how companies can position themselves for
success (The Five Forces, no date, para. 1). Five force framework prioritizes external analysis, allowing firms
to react effectively to changes in the external environment and it integrates with other models, like PEST
(Goyal, A.,2020). It emphasizes the significance of exploring imperfect markets, where opportunities for
supernormal profits exist and demonstrates that competitive rivalry is central and influenced by the other four
forces (Goyal, A.,2020).
But on the other hand Porter model provides a static image of industry lacking adaptability to dynamic
changes, meanwhile he also ignored the complements effect on the industry and the effect of legal forces on
industry, besides neglecting the need to segmentation and differentiation among buyers, distributors, and end
customers (Beatie, A.,2022; Goyal, A.,2020).
2.3.3
VIRO
VRIO analysis explains how an organization resource characteristics are unique and how it can keep having
sustainable advantages on the market. The resource-based view (RBV) in which management focus on the best use
of available resources both facilitates and limits company growth (Ferreira, M.J.J, Ferriera, F. A. F. and Frnandes,
2021). As marketing itself, models including VRIO are too large and sluggish comparing to economic vastness and
rapid changes too (Vanzandt, 2023).
2.3.4
Mendelow Matrix
Mendelow Matrix was designed to find the potential impact of stakeholders based on their power and interests
(Marketing Theories, 2023). But the dynamics might be over simplified and evaluating interest and power can be
subjective (Cuofano, 2023)
3. Situational Analysis of VAUXHALL
3.1. PESTLE
Vauxhall Motors, is subject to various external factors that influence its operations.
3.1.1 Political:

Vauxhall is affected by Brexit-related concerns, supply chain challenges, the transition to electric vehicles, and
economic uncertainties due to Russian invasion causing energy crisis and soar of the good’s prices. They also
cannot become free from 10% tarrif unless they produce 40% parts of electrics in UK and they cannot provide
these 40% because batteries parts come from EU (O’garoll and Jolly, 2023).
3.1.2

Economic:
Despite challenges, Vauxhall has demonstrated resilience with market share growth. In the first half of
2019, Vauxhall's market shares for cars and light commercial vehicles increased, outperforming a
declining market (UK automotive sales Volume, 2023).
3.1.3 Sociocultural:

Vauxhall Motors has been actively involved in promoting diversity, challenging societal
misconceptions, and demonstrating a commitment to sustainability and corporate social responsibility
(Vauxhall-news, 2020; Sustainability, no date).
3.1.4 Technological:

Advances in technology, such as electric vehicles and autonomous driving, pose both challenges and
opportunities for Vauxhall in terms of innovation and adaptation (Vauxhall SWOT Analysis, no date).
3.1.5

Environmental:
Vauxhall is influenced by environmental regulations, including emission standards and sustainability
practices. The company may need to invest in eco-friendly technologies (HM Treasury, 2021).
3.1.6
Legal:
Legal factors encompass regulations related to labor, product safety (Vauxhall, 2023), affecting
Vauxhall's compliance and business operations (Corner-I, 2023).
In summary, Vauxhall Motors must navigate a complex external environment shaped by all mentioned factors.
Understanding these elements through a PESTEL analysis is crucial for strategic decision-making and adapting to the
dynamic automotive industry.
3.2. Porter Five Forces
3.2.1
Bargaining Power of Buyers:
(Medium to High)
Buyers may influence prices and demand higher quality or services (fawas-VAUXHALL, 2021)
3.2.2
Bargaining Power of Suppliers:
(Low)
Vauxhall, being part of the automotive industry, have multiple suppliers, reducing supplier power
(vauxhallsuperstore, 2023)
3.2.3
Threat of New Entrants:
(Low)
The automotive industry has high entry barriers, including capital requirements and brand
establishment (fawas-VAUXHALL, 2021).
3.2.4
Threat of Substitutes:
(Medium)
Alternatives like public transportation and changing consumer preferences pose a moderate threat
(Henry, 2018)
3.2.5
Intensity of Competitive Rivalry:
(High)
The automotive sector is highly competitive, with numerous brands competing for market share
(Henry, 2018)
3.3. VRIO
How much unique is Vauxhall?
3.3.1 Value: Despite the strong threshold of capabilities Vauxhall went through limitations on
resources which was brought back when was purchased by PSA group ((Henry, 2018). They
are capable of organizing well as it provides financials, internet sale, fashionable design, ecofriendly, high-tech and electric, reliable and reasonable products (about-Vauxhall, 2023)
3.3.2 Rarity: Vauxhall benefited from its Britishness design to stay high as a British iconic brand.
3.3.3 Inimitability: with its strong brand reputation, advanced technologies that are not easily
duplicated (Pure Technology, 2023)
3.3.4 Organizational support: Vauxhall strong work force has organizational culture to keep people
in center of mobility solution and create value for people (about Vauxhall, 2023).
Vauxhall SWOT analysis
Strengths
Weaknesses
●
Strong brand name
●
Material dependency on out of Britain
●
High tech, reliable, and reasonable products
●
Local market limitation
●
Quality
●
High Energy price
●
Britishness
●
Electric vehicles productions
●
Customer centered organizational culture
Opportunities
Threats
●
Growth of internet distribution and online delivery
●
International economic Crisis
●
Products diversification
●
Some tough competitors
●
Financial offers
●
●
International markets
●
●
Big Parent companies
●
High tech capabilities
●
Strong supply chain
Similar products with less price
High risk of losing customers
3.4. Mendelow Matrix
Stakeholders of Vauxhall includes from diverse direct car customers inside and outside Britain, Government, Suppliers,
Parent company of PSA group, Environment communities, internal employees and workers.
Mendelow Table Of Vauxhall Stakeholders
High
Parent company
of PSA group
Government
Power
Suppliers
Employee and Workers
Customers
Low
Low
Interest
High
Summary
So Vauxhall motors environment was effected by Brexit which caused them loose their material sources in Europe and
Russian invasion to Ukraine that caused energy crisis caused soaring on prices while similar products of specially Ford
products with less price and competing technology and quality make more challenges for Vauxhall while customer
choices are wide in Britain.
Despite all Vauxhall has joined to a strong parent company and by more Britishness design, when public needed
something to stick to after Brexit; they touched people’s heart and owned more share in Market. As the prices of energy
soars they shifted to electric car and vans to make their capabilities to strength. Finally, Vauxhall values toward
customer centered culture and following sustainability values besides the following all high standard rules in car
industry has left a positive grade sheet for customers to buy and investors to invest, yet staying British.
Reference List
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(Accessed: 16 December 2023).
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December 2023).
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https://reviews.history.ac.uk/review/1755 (Accessed at: 16 December 2023).
Bharadwaj, A. et al. (2013) ‘DIGITAL BUSINESS STRATEGY: TOWARD A NEXT GENERATION OF
INSIGHTS’, MIS Quarterly, 37 (2,6). Available at:
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Corner-I, (2023) Vauxhall Motors Ltd v Transport and General Workers Union EAT/0657/05 Available at:
https://app.croneri.co.uk/law-and-guidance/case-reports/vauxhall-motors-ltd-v-transport-and-general-workersunion-eat065705?topic=4908 (Accessed at: 16 December 2023).
Cropley, S. (2020) Vauxhall launches new strategy aimed at promoting its 'Britishness'. Available at:
https://www.autocar.co.uk/car-news/business/vauxhall-launches-new-strategy-aimed-promoting-itsbritishness (Accessed at: 16 December 2023).
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December 2023).
Dincer, K. (2020) Conceptual Framework for the Strategic Management: A Literature Review—Descriptive. Available
at: https://www.hindawi.com/journals/je/2020/6253013 (Accessed at: 16 December 2023).
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2023).
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Five Forces Analysis. Available at: https://www.case48.com/porter-case/41977-Groupe-PSA-Acquisition-ofOpel-Vauxhall---From-Turnaround-to-Profitable-Growth (Accessed at: 16 December 2023).
Fleming, M (2019) Vauxhall boss: Our brand positioning was unsustainable. Available at:
https://www.marketingweek.com/vauxhall-boss-turnaround-strategy/ (Accessed at: 16 December 2023).
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0360060910700660721170000080650870321170250550470160340040930701020000750730540190300260
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16 December 2023)
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(Accessed at: 16 December 2023).
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Appendix
Apendix a. VRIO
V
Value: Do resources and capabilities exist that are valued by
customers and enable the organisation to respond to
environmental opportunities or threats?
R
Rarity: Do resources and capabilities exist that no (or few)
competitors possess?
I
Inimitability: Are resources and capabilities difficult and costly
for competitors to obtain and imitate?
O
Organisational support: Is the organisation appropriately organised
to exploit the resources and capabilities?
Appendix b. Vauxhall motors ltd. Increase on sale for passenger cars from 2022 to 2023
Appendix c. Vauxhall motors ltd. Increase on sale for van from 2022 to 2023
Appendix d. Vauxhall Five Forces
Five Forces
Intensity of Competitive Rivalry:
high
The automotive sector is highly competitive, with
numerous brands competing for market share.
Threat of Substitutes:
Medium
Alternatives such as public transportation and changing
consumer preferences pose a moderate threat while the
main risk comes from too many competitor producing
same products. (Appendix b and c)
Threat of New Entrants
Low
The automotive industry has high entry barriers,
including capital requirements and brand establishment
Bargaining Power of Suppliers
Low to Medium
Vauxhall, being part of the automotive industry, have
multiple suppliers, reducing supplier power. (Appendix
d.)
Bargaining Power of Buyers
Medium to High
Because of high number of similar productions buyers
may influence prices and demand higher quality or
services (Appendix b and c)
Appendix e. Vauxhall Car Parts Suppliers
VAUXHALL Car Parts
Range of parts
Suppliers
Autopartspro
Provides a comprehensive catalog of original car parts for Vauxhall models
EUspares
Online catalogue for original VAUXHALL car parts
Vauxhall Parts Direct
One of the leading Vauxhall Parts distribution centers in the UK
AutoVaux
Offers a huge range of genuine Vauxhall service parts