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Volkswagen elasticity of demand


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Elasticity of Demand Analysis - Volkswagon case study

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Volkswagen elasticity of demand

  1. 1. Elasticity of Demand AnalysisVolkswagen Passenger Cars<br />Presenter: ITM EEC Batch 20 Group-5<br />Pankaj Tiwary – Roll No: 02 <br />Debanjan Roy Chowdhury – Roll No: 15<br />Chetan Dhapte – Roll No: 20 <br /> Hemanta Sahu - Roll No: 25<br />
  2. 2. Content<br /><ul><li>Introduction to Demand
  3. 3. Price Elasticity of Demand
  4. 4. Case study:- Volkswagen
  5. 5. Conclusion & Suggestions</li></li></ul><li>Introduction of Demand<br />Demand is a desire for good, backed by ability and willingness to pay.<br />Individual Demand : The quantity of commodity that a person willing to buy at given price over a specific period of time. <br />Market Demand : Total quantity that all the users of a commodity are willing to buy at given price over a specific period of time.<br />Market Demand is the sum of Individuals demand.<br />
  6. 6. The Law of Demand<br /><ul><li>The law of Demand can be stated as, Other things are equal, the quantity demanded of a commodity increases when its price decreases and decreases when its price increases.
  7. 7. Alfred Marshall state as, “the amount demanded increases with the fall in price and diminishes with rise in price.”
  8. 8. Inverse relation between Demand and Price.</li></li></ul><li>Price Elasticity of Demand<br /><ul><li>The degree of responsiveness of demand for a commodity to the change in its price.
  9. 9. Elasticity of Demand is the % change in Quantity demanded of a commodity as a result of certain % change in its Price.
  10. 10. Ed = % change in Quantity demanded / % change in Price.</li></li></ul><li>
  11. 11. Volkswagen Group<br />1904–1936 : “Volkswagen” began in Germany in 1904.<br />1937–1945 : The Foundation of the Volkswagen Plant.<br />1950–1960 : Internationalization and Mass Production in Germany’s Economic Miracle.<br />1973–1981 : The new generation of Volkswagens arrived<br />1982–1991 : New Brands, New Markets<br />1992–2008 : Globalization of the Mobility Group<br />
  12. 12. Volkswagen Group<br />The Volkswagen Group employees just under 370,000 people all over the world.<br />60 production facilities in 21 countries worldwide.<br />359 group companies that produce vehicles or offer related services.<br />Group Sales revenue up 19.9% y-o-y at €92.5 billion.<br />Operating profit up €3.3 billion on weak prior year period at €4.8 billion.<br />China, Western Europe, North & South America continue driving demand.<br />Group deliveries to customers up 12.9% y-o-y to 5.4 million vehicles; global market share amounts to 11.6%<br />
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  17. 17. Volkswagen PC Market Demand <br />