Fundamentals of Management 6th Edition by Ricky Griffin

Exercise 11

Volkswagen sold its original Beetle automobile in the United States until the 1970s. The original Beetle was made of inexpensive materials, was built using an efficient mass production technology, and offered few options. Then, in the 1990s, Volkswagen introduced its new Beetle, which has a distinctive style, provides more optional features, and is priced for upscale buyers. What was Volkswagen's strategy with the original Beetle- product differentiation, low cost, or focus? Which strategy did Volkswagen implement with its new Beetle? Explain your answers.