Strategic Analysis Of The Porsche 911 In Australia

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Strategic Analysis Of The Porsche 911 In Australia

Strategic Analysis Of The Porsche 911 In Australia

  1. 1. 325‐229
STRATEGIC
MARKETING

 Porsche
911
 Strategic
Assessment
of
the
Australian
Market 
 Assignment
#1
 
 Khai
Hoong
Leong
(275059),
James
Andrew
Davies
(315694)
 Maric
Wai
Chak
Tam
(324214),
Yu
Ling
Chow
(333694)
 



 
 Tutorial
Time:
Thursday
10am
‐11am
 Tutor:
Ruth
Borgobello
 Word
Count:
2176
words
 Excluding
Tables,
Appendices,
and
Bibliography
 1
 

  2. 2. Executive
Summary
 
 Upon analysis of external industry factors and internal firm resources and capabilities, this report finds that with a market attractiveness of 4.0 and a differential advantage of 4.0, the current customer segment whom Porsche is positioning their 911 series of sports cars to should be maintained whilst Porsche seeks new market segments to invest in to take over as their new principle market. It was also found that in keeping with Porsche’s core competencies and brand image, future growth strategies should be based on expansion/ penetration into new customer markets with their same product lines, instead of its current strategy of diversification where Porsche entered the SUV and four door sedan markets. Due to the nature of the product category and how only certain wealthy demographics could afford or be interested in the Porsche 911, this report recommended serving the same market demographics (i.e. same income level, same age, etc) but seek new segments to serve. i.e. position the Porsche 911 to new segments with different needs. With upcoming trends such as the Australian government imposing surcharges on all cars to reduce Carbon Dioxide Emissions, and an upcoming cultural trend where demand for smaller, distinct and unique and niftier cars is rising, it was suggested for Porsche to revitalize its brand: I.e. win back old customers who own other brands of luxury sports cars but due to environmental changes such as exorbitant maintenance costs are looking for smaller compact fuel efficient cars that are much easier to handle (i.e. get them to switch back to Porsche 911). 2
 

  3. 3. The benefits required by the recommended segment are more centered towards functional attributes, such as faster maintenance service times and fuel efficiency. This is in contrast to the current principle market, who emphasize more on symbolic and experiential benefits. Thus, it is far more advisable for Porsche to target its 911 series at the new market instead, as the resources and capabilities of the firm match the needs and wants of the customers which along with environmental and regulatory trends, and the cost saving synergies developed via its acquisition by Volkswagen, it would seem that Porsche is in a good position to develop a sustainable competitive advantage in serving its new principle target segment. Indeed, a potential value analysis of that segment yielded a high score of 5.5 out of seven. However, with the new segment may come new competitors. The three major competitors in that new market segment are, BMW M6, Aston Martin Vantage and Audi R8. Two of which, possess competitive points of parity in terms of engineering expertise (the BMW and Audi) with the Aston Martin far surpassing Porsche in terms of brand imagery and exclusivity. Analysis on how exactly to deal with these competitors is beyond the scope of this report and requires further research. 
 
 
 
 
 
 3
 

  4. 4. Contents Executive
Summary ......................................................................................................................................2
 1.0
Introduction............................................................................................................................................5
 2.0
Selection
of
Future
Markets: ..................................................................................................................5
 3.0
Opportunities
and
Threats .....................................................................................................................7
 4.0
Strengths
and
Weaknesses...................................................................................................................15
 5.0
Strategic
Objectives
and
Strategic
Focus..............................................................................................19
 6.0
Segmentation
of
Market.......................................................................................................................21
 6.1
Benefits
recognized
by
customers....................................................................................................22
 6.2
Benefits
unrecognized
by
customers................................................................................................23
 7.0
Target
Segments...................................................................................................................................24
 8.0
Assessing
Potential
Value
of
Customers...............................................................................................24
 8.1
Level
of
Strategic
Fit: ........................................................................................................................24
 9.0
Competitors
Analysis ............................................................................................................................29
 9.1
Competitors
to
911...........................................................................................................................29
 9.2
Identification
&
Prediction
of
Competitor
Strategies .......................................................................32
 10.0
Conclusion ..........................................................................................................................................34
 Appendix: ...................................................................................................................................................35
 Description of the Porsche 911:..............................................................................................................35
 Bibliography................................................................................................................................................36
 
 
 
 
 4
 

  5. 5. 1.0
Introduction
 Porsche’s famous 9111 is now approaching 46 years of age. Currently its long-time market leadership in the Australian luxury sports car market is being threatened by increasing competition, poor economic conditions and environmental concerns. Now is the time for Porsche to assess the position of its flagship 911 series car in the premium sports car market, and subsequently make a decision about their future direction. This shall be achieved by conducting a quantitative SWOT analysis of both future and current consumer segments to determine both currently and in three years time the most appropriate strategic marketing objective and focus Porsche should pursue to maximise profit. This shall be followed by a market segmentation analysis on the different segments within the current and future consumers based on what benefits or needs are sought by the different segments. The aim of this is to identify which segments Porsche should serve based on its resources and capabilities, and more importantly analyse the competitors Porsche would face whilst serving those markets along with the competitive strategies. This report focuses on the immediate Australian market, and specifically, two customer segments, the current principle segment, and a future segment recommended by this report. A number of trends point to further decreases in the market, and hence this report will analyse emerging trends with the final aim of making strategic recommendations for the 911 brand. 2.0
Selection
of
Future
Markets:

 
 To continue improving corporate value, Porsche must select the most attractive markets and develop sustainable competitive advantages in each (Lukas, 2009). Porsche’s most valuable 




























































 1 Please refer to appendix for a short description of the Porsche 911 series of cars. 5
 

  6. 6. marketing asset is their brand, which has provided them with a strategic position that differentiates Porsche from other premium brands (Gruner, 2009). However, with the introduction of Boxster, Cayman, Cayenne and now Panamera, Porsche have diluted their brand in the eyes of consumers, eroding the points of differentiation created by their brand and alienating customers of the flagship 911 (Madslien, 2004) Thus, this report recommends that for its future strategies for growth, Porsche target new “customer markets2” with its current product lines instead of expanding into new markets with new products3. It is not recommended for Porsche to go into entirely new markets with entirely new products (i.e. product markets), for example motorbikes or trucks4. Thus, for Porsche’s future assessment for market options for “tomorrow’s business5”, they should focus on new customer segments within their current market6. This is because customers of Porsche, especially the 911 series are quite specialized: Due to its “hefty price tag”, the number of consumers who can afford a Porsche 911 series car is quite limited. Coupled with the fact that the differential advantage of a Porsche would be its excellent performance and handling, buyers of the Porsche 911 car series would be immensely wealthy and are serious car enthusiasts who possess an in-depth knowledge of sports cars. 




























































 2 adopting a market growth strategy 3 i.e. adopting a diversification growth strategy 4 
 This is because the core competency of Porsche lies in cars4. Any venture into whole new product categories outside cars would involve significant investment, capital costs and risk, something a lean, cost-efficient company like Porsche can ill-afford (Long, 2005) 5 i.e. the new markets Porsche should pursue in future in order to foster and sustain growth 6 Adopt a market penetration approach 6
 

  7. 7. Once a key driver of brand equity for Porsche, especially its 911 series, Porsche has somewhat digressed from its image of small compact cars with superb handling, and are now focusing on a carefree, relaxed driving experience, with the current principle consumers of the Porsche 911 series being wealthy 40 year old men who “enjoy the good things in life and seek to rediscover their youth” (Whitwell et.al. 2003). Thus, to revitalize the Porsche brand, it is recommended for Porsche to rediscover its old source of equity, i.e. it is recommended that a future consumer market Porsche should target for its 911 series is: customers seeking exclusive luxury sports cars that possess high performance, are smaller and easier to handle and most importantly of all possess high fuel-efficiency7. 3.0
Opportunities
and
Threats
 To determine whether Porsche should pursue the 911 in its current market or move to a different market entirely, a SWOT analysis has been conducted on the market opportunities and threats and the relative strengths and weaknesses of the 911. The analysis has first been conducted in the present and then projected 3 years into the future Throughout, a ranking scale of 1 to 7 was used, with 1 being the least favourable result and 7 representing the most favourable outcome. A brief report surmising the findings can be found at the end of this section: 
 
 
 
 




























































 7 Fuel consumption is far more efficient, i.e. they can be driven for longer distances on a lower quantity of fuel. 7
 

  8. 8. Table
1.0
Size
of
Market
 Customer Segment Current Market Market 3 years from now Current Customer Segments Although the premium sports car market Due to the poor economic outlook that will is a small segment of the overall vehicle last for the next five years, low growth rates Current Score: 5/7 market, there is ample opportunity for a will see the size of the current market to Future Score: 5/7 market leader and high profit margins stagnate, i.e. the size of the current market make the market attractive. will definitely not grow. Demand is significant due to the However, with Porsche’s brand image of premium image surrounding these performance, superb handling and vehicles, and as long as there is wealth in engineering expertise, existing customers society there will be demand for within the current principle market are set premium vehicles that offer high to continue purchasing 911’s, and hence the performance and status symbols. market is too well established to shrink. Future Customer Segments Size of future market is currently low With high growth rates due to due to benefits of the Porsche 911 not so environmental and regulatory factors Current Score: 2/7 appealing yet. making the benefits of the 911 series more Future Score: 5/7 evident8, with the right marketing Hence the extremely low score of 2/7. campaign, size of future market can be induced to grow to significant levels, hence the high score of 5/7. Table 1.1 Growth of Market Customer Segment Current Market Market 3 years from now Current Customer Segments The premium sports car market had been In Europe and America, trends toward low- increasing in size until the recent emission vehicles may limit growth, and Current Score: 4/7 economic downturn, which shrunk the uncertain economic conditions cast doubt Future Score: 2 /7 market in America and Europe but over sustained growth. growth in Asian markets continued. Overall, growth in Asian markets should Porsche Australia recorded record sales counter this, but the overall outlook is but 911 sales shrunk to 507 negative and downward. “Porsche cannot vehicles/year, down from 573 escape this downward trend” (Dr. Wendelin (Porsche SE, 2008, p. 61). Wiedeking, via. Porsche SE, 2008, p. 6) Recent economic downturns have Hence, the low score of 2/7 pointed to a serious slump in the automotive sector (Porsche SE, 2008, p. 6). It is unlikely that the 911‘s market will grow at present, and indeed any growth that may occur would be reparative. Hence the score of 4/7. 




























































 8 It has been predicted that due to changing lifestyles and attitudes, amongst Australian consumers a trend for smaller, faster and more fuel- efficient cars will develop, which will be further complemented by the Federal government’s push to implement a tax on carbon dioxide emissions on all cars (Blackburn, 2009). Thus, Porsche and the 911 will stand to benefit with the right positioning and right marketing strategies. 8
 

  9. 9. Future Customer Segments Similar to market size, growth of future Once again, with high growth rates due to market is currently low due to benefits of regulatory and cultural factors, with Current Score: 2/7 the Porsche 911 not being apparent yet. effective marketing Porsche will stand to Future Score: 5/7 benefit, and the growth of future markets Hence the extremely low score of 2/7 for will accelerate in three years time. growth of market. Hence the high score of 5/7. Table 1.2 Hostility of Competition Customer Segment Current Market Market 3 years from now Current Customer Segments From both consumer and producer No change. The competitive landscape is perspectives, the market is highly unlikely to change significantly – Current Score: 3/7 competitive, with brands competing competitors and intensity of rivalry are Future Score: 3 /7 aggressively on all key features (except most likely to remain the same. This will be price): covered in greater detail in the competitor’s analysis section of this report. • Numerous, equally balanced competitors who target products Hence the score of 3/7. directly against the 911 • New competitors have entered the market within the last 3 years (Aston Martin, Audi, Nissan) • Slow industry growth, hence manufacturers fight for market share • Maximum 2.5-3 year product life cycle (new challenges introduced frequently) However, there are many factors that reduce the intensity of competition and make the market survivable: • Capacity is augmented in small increments, limiting the effects of hostile competition • High differentiation amongst offerings, making price premiums justifiable • Low exit barriers for producers, making price wars unlikely Hence the score of 3/7. 9
 

  10. 10. Future Customer Segments Once more, hostility of competition As the benefits of a more compact and fuel- would be high, as currently the future efficient car become prominent, Porsche Current Score: 3/7 market would be more attracted to would be the obvious choice, leading to Future Score: 6/7 different markets and be spoilt for very few substitutes for the 911. choice. Hence the high score of 6/7. Hence the extremely low score of 3/7 for growth of market. Table 1.3 Threat of Substitutes Customer Segment Current Market Market 3 years from now Current Customer Segments By virtue of hostile competition, there No change. The market is highly are a considerable number of substitutes competitive and social trends make it Current Score: 4/7 that consumers might consider when attractive for some buyers to regularly Future Score: 4 /7 evaluating premium sports cars: switch brands, but loyalty is unlikely to decrease and hence some stability can be • Aston Martin V8 Vantage assumed. • Audi R8 Hence the same score of 4/7. • BMW M6 • Jaguar XKR • Lamborghini Gallardo • Maserati Granturismo • Mercedes SL/CL • Nissan GTR • Porsche 911 Each are highly differential (largely brand based) and many, if not all, will be evaluated by potential buyers. However, brand loyalty is high, and a large segment of the market will never consider alternatives. See the Competitors section for more information. Future Customer Segments As mentioned earlier, future markets Similar to the other factors, as the benefits would be more attracted to competitors of the Porsche 911 become more obvious Current Score: 2/7 of Porsche, thus substitutability of and through the right marketing strategies, Future Score: 5/7 Porsche would be very high substitutability of the Porsche 911 would fall. Hence the extremely low score of 2/7 Hence the high score of 5/7 10
 

  11. 11. Table 1.4 Threat of New Entrants Customer Segment Current Market Market 3 years from now Current Customer Segments Despite a number of new entries in No change. It remains unlikely that new recent years, entry to the market requires competitors will enter because most brands Current Score: 6/7 substantial investment from an already are either already competing or are not Future Score: 6 /7 established brand, and hence it is suitable competitors. unlikely that new competitors will Hence the similar score of 6 threaten Porsche’s 911: • Large economies of scale are required to compete in the required price range at the required quality level • Product differentiation is largely brand and history based • Loyalty to the 911 is high, and switching costs are high • Distribution needs to be achieved on a worldwide scale There are a limited number of suitable brands remaining who could pose a challenge to the 911, hence the threat of new entry is low. Hence the high score of 6 out of 7. Future Customer Segments Same reasons given above apply to score Same reasons given above apply to score for future customer market. for future customer market. Current Score: 6/7 Future Score: 6/7 11
 

  12. 12. Table 1.5 Bargaining Power of Suppliers Customer Segment Current Market Market 3 years from now Current Customer Segments Although supplier products are vital to No change. Supplier power should see no production, their transactional power change over time. Economic conditions Current Score: 6/7 over Porsche is usually low: may force some suppliers to close but the Future Score: 6 /7 effect of this should be minimal. • A large number of suppliers exist and compete on a worldwide basis Hence the similar score of 6 • Supplier products are (usually) not highly differentiated • Competition between suppliers is high as a contract with Porsche/etc represents a significant opportunity • Switching costs between suppliers are low • Many components are produced by their vehicle manufacturer themselves Hence the high score of 6 out of 7. Future Customer Segments Same reasons given above apply to score Same reasons given above apply to score for future customer market. for future customer market. Current Score: 6/7 Future Score: 6/7 Table 1.6 Bargaining Power of Buyers Customer Segment Current Market Market 3 years from now Current Customer Segments Buyers have little transactional power over Buyer power may increase as social Porsche: trends make purchasing high Current Score: 6/7 performance vehicles seem • Buyers are low volume (although Future Score: 5 /7 irresponsible, hence allowing buyers to repeat business is highly likely and demand more environmentally each transaction is highly profitable) responsible features. • Buyers face high switching costs, both However, traditionally this market financial and feature/capability based segment has been protected from these • Price sensitivity is usually low (within factors, and hence the effect in 3 years a given range) and buyers are usually should be low (although it may affluent. compound further into the future). High substitutability is the only Hence the lower score of 5 out of 7. empowering factor for buyers, who otherwise have little power in the transaction. Hence the high score of 6 out of 7. 12
 

  13. 13. Future Customer Segments Once more, benefits of Porsche 911 With changes in the regulatory and currently is not so obvious to buyers in this socio-cultural environment in 3 years to Current Score: 2/7 segment, therefore, bargaining power of come, therefore demand for Porsche will Future Score: 5/7 buyers here is very high, thus the low score go up, leading to the lowering of of 2/7. bargaining power of future consumers by a large extent, hence the high score for Porsche at 5/7. Table 1.7 Cyclicality of Market Customer Segment Current Market Market 3 years from now Current Customer Segments Common perception is that the market is No change, since demand is still based relatively stable throughout the year, but on a small seasonal variation. Current Score: 6/7 traditionally the winter months are quieter Hence the similar score of 6/7 Future Score: 6 /7 as the weather is not conducive to driving a sports car. Hence the score of 6/7 Future Customer Segments Please refer to the above Please refer to the above. Current Score: 6/7 Future Score: 6/7 Table 1.8 Market Risks Customer Segment Current Market Market 3 years from now Current Customer Segments Trends toward low-emission vehicles and As time progresses it becomes more uncertainty about the price and availability likely that social and economic factors Current Score: 4/7 of oil cast doubt over the long-term will affect the sports car market, but the Future Score: 3 /7 viability of combustion engines. At present premium niche again prevents it from the market can be considered stable, but being completely eliminated. not without risk. Hence the lower score of 3. Fortunately, the customer base for this market negates these risks slightly (for example, an individual who can afford a ¼ million dollar car is unlikely to be overly sensitive to petrol prices or congestion charges). Hence the moderate score of 4/7 Future Customer Segments Please refer to the above as same reasons Please refer to the above as same reasons apply apply. Current Score: 4/7 Future Score: 3/7 13
 

  14. 14. Table 1.9 Overall OT SCORE. Overall OT SCORE for Current Overall OT SCORE for 3 Market (Present Opportunities and years later. (Future Threats) Opportunities and threats) Current Customer 4.89/7 4.00/7 Segment: Future Customer 4.13 /7 5.67/7* Segment: *Indicates high profitability of serving future market in three years time due to strategic fit of changing environmental and regulatory factors to Porsche’s strengths and weaknesses. At present the market is highly attractive. The most attractive aspects of the sports cars market include high profit margins, high transactional power for manufacturers and the relatively stable conditions compared to other market segments. Hostile competition and relatively high substitutability add some risk to the market, but overall there is ample opportunity to become a market leader or find a highly profitable niche. Further, the behavioural nature of this market and the high dependence on brand provides a level of security that cannot be found in lesser markets. The main opportunities identified which would increase market attractiveness in three years time are: An upcoming trend of consumers desiring smaller, more compact cars that are exclusive and unique, as well as fuel efficiency due to changes in lifestyles and awareness regarding environmental degradation. This is further complemented by the expected price hikes in oil prices, and the likelihood of the Australian Government imposing taxes on all cars to reduce Carbon Dioxide Emissions (Blackburn, 2009). Thus, this would help increase the profitability of serving both current and future markets, seeing as the differential advantages of Porsche lie with its fuel efficiency and distinctive small compact design. 14
 

  15. 15. However, a singular most important threat would be how due to the global financial crisis, most of Porsche’s direct competitors such as Jaguar are now focusing on cost cutting as well, which may negate Porsche’s competitive advantage in lean production and make it harder for them to compete (The Motor Report, 2009). 4.0
Strengths
and
Weaknesses
 Table 2.0 Variable Costs Assessment. Consumer Type: Current market Score for Variable Market Score for Variable Costs 3 Costs years in the Future Current Consumers Variable costs would largely consist of the No change. It is feasible that variable raw inputs involved in the production of costs may increase or decrease in the Current score: 4/7 vehicles, such as materials and labour. It is future, however it is somewhat Future Score: 4/7 difficult to know these costs, but it is fair to impossible to predict if or to what assume that large-scale manufacturing degree. We can assume consistency, but introduces significant economics of scale. Porsche need to follow trends and make predictions of future costs. For the 911, the use of high-tech materials and lightweight composites would result in high than average variable costs, and indeed Porsche may be at liberty of the materials market. However, the highly efficient production methods and the fact that these materials are shared across many Porsche models should reduce this cost, and hence we have assigned it an average of 4. Future Consumers In terms of advertising and promotion, it As changing trends make the future would take a lot of marketing promotions to consumer more susceptible to opening Current score:2 /7 attract future consumers at this point of time. up their minds to the Porsche 911, i.e. Future Score: 5/7 promotions would be far more effective Hence it is ineffective to market to Future at this point. marketers at this point, thus the low score of a 2/7 Return on investment for advertising and promotion would thus be far higher, hence the high score of a 5 Table 2.1 : Fixed Costs Assessment Consumer Type: Current market Score for Fixed Market Score for Fixed Costs 3 Costs years in the Future Current Consumers In terms of fixed costs relative to current No change. With Porsche’s proposed industry levels, the 911 can be produced merger with the Volkswagen Group very efficiently. Production costs such as in 2011, it is in a prime position to Current score: 6/7 labour, rent and other overheads, are access advanced technologies to consistent and unchanging. achieve cost-cutting synergies due Future Score: 6/7 to “joint purchase and logistics, 15
 

  16. 16. This is because Porsche is currently one closer cooperation in financial of the most efficient car manufacturers in services, joint development projects the world, largely due to former CEO and the use of similar modules in Wendelin Wiedeking’s implementation both groups” (Dinkloh, 2009). of “lean thinking” throughout Porsche’s This move may help nullify the cost production chain (Legget, 2009), which cutting measures taken by has allowed them to reduce costs whilst competitors, thus retaining Porsche’s improving quality and features offered. competitive advantage in lean production costs. Future Consumers Please refer to above as production costs Please refer to above as production in terms of fixed costs are generally the costs in terms of fixed costs are Current score: 6/7 same generally the same Future Score: 6/7 Table 2.2 Differential Advantages Assessment. Consumer Type: Current market Score for Market Score for Differential Differential Advantages advantages 3 years in the Future Current Consumers The 911 has over 46 years of history and -1. In 3 years time the 911 should has highly established competencies that remain highly differentiated as a consumers are willing to pay a premium feature-based product, but the Current score: 5/7 for: continuing expansion of the brand may have negative effects on the Future Score: 4/7 • Only rear-engined vehicle on the desirability of Porsche products. market Porsche are highly unlikely to be • Shape of 911 is unique has strong viewed as a commodity brand, yet associations with performance compared to other brands that have • ‘Porsche’ brand is synonymous with specialised exclusively their high performance and engineering advantage will be lower excellence • Highest performance and best i.e. Current consumers will feel less handling vehicle in the segment willing to pay a premium for the • Reliable and versatile enough to be unique benefits offered by the used as a day-to-day vehicle Porsche 911. • Running costs are lower than some competitors • Multiple models in the range mean there is a 911 ‘for every occasion’ and hence the 911 can ‘grow’ with consumers • Pedigree has accrued over 46 years and the 911 is famous for its tradition Despite these advantages, Porsche’s differential advantage has declined recently due to brand dilution. This is due to the release of lower-market models such as the Boxster and Cayenne, and 16
 

  17. 17. hence the ‘Porsche’ name has lost its exclusivity. Consumers are less willing to pay a premium for a product that feels common. Finally, it must be said that every competitor offers some form of differentiation, and the market determines which advantage are preferential to customers at any time. Future Consumers Currently, Porsche 911 has its own In three years time, when price hikes unique advantages that set it apart from in oil prices occurs, and when the competitors, and offers future consumers trend towards smaller niftier cars is Current score: 4/7 a viable alternative choice to their top fully embedded in society, Porsche’s preferential brand for luxury sports cars. differential advantages would be far Future Score: 6/7 more relevant than before. Hence, a modest score of 4/7 was awarded for relevance of Porsche’s differential advantages at this current Thus, a higher score of 6/7 was time awarded due to increase in relevance of Porsche 911’s strengths in light of environmental changes, i.e. at this point of time, consumers would be far more willing to pay a price premium for Porsche 911’s unique and differential benefits. 
 
 Table
2.3
Overall
Strength
and
Weaknesses
Scores
 Overall SW SCORE for Current Overall SW SCORE for 3 Market (Current Strengths and years later. (Future Weaknesses) Strengths and Weaknesses) Current Customer 5.00/7 4/79 Segment: Future Customer 2.78/7 6.0/7* Segment: *Changes
to
the
market
place
have
made
strengths
of
Porsche
more
relevant
to
future
market
 
 Overall, Porsche are strongly positioned to differentiate themselves and produce vehicles at a profitable, competitive price. Synergies and technology sharing with the Volkswagen group 




























































 9 Indicates a Lower score- how strengths may becoming less relevant in serving current market due to expected environmental features in the future. 17
 

  18. 18. allow efficient, cost-competitive production that should become more efficient over time, and current assets help keep fixed costs down. One major weakness at present is the dilution of brand image. Although Porsche was saved from bankruptcy by the introduction of down-market models, their success has been self-sacrificing, and the brand is no longer valued as highly. This reduces the premium consumers are willing to pay for a Porsche product10, although the decrease is presently minimal and is largely supplanted by high engineering competencies. However, it is important to note that Porsche 911’s advantages in having a small, compact design and having the most fuel-efficient car may have a distinct effect on future markets three years from now, making their benefits more relevant in the future, and thus consumers would be more willing to pay a premium for. 




























































 10 Indeed, it has caused some customers to move away from the brand into more ‘exclusive’ products. 18
 

  19. 19. 
 Position
of
Future
 Customer
Segment
 5.0
Strategic
Objectives
and
Strategic
Focus
 4.0
 6.0
 
 Divest/Grow Grow Grow/Enter 
 Opportunities and Threats 5.67
 Harvest Maintain Grow 
 4.0
 Divest Harvest Maintain 
 Strengths and Weaknesses 

 
 Position
of
Current
 Customer
Segment
 
 Graph 1.1: Strategy Categorization Matrix for what Porsche should do to exploit opportunities three years from now. Based on the earlier findings on the market attractiveness of the Australian luxury high- performance car industry and the differential advantages possessed by Porsche, this report formulated a strategic categorisation matrix on what Porsche should do to exploit opportunities available to them 3 years from now. It would seem that the future market recommended by this report is not only attractive (5.67/7), but with a differential advantage of 6.0/7 Porsche has the resources to develop a sustainable 19
 

  20. 20. competitive advantage in that market, once again justifying the pursuit of that market as a viable “tomorrow’s business”. With moderate scores of 4.0 in both market attractiveness and differential advantage, it would seem that the current principle market of Porsche’s 911 series is not that attractive, neither does Porsche has much of a sustainable competitive advantage in that market. Thus the moderate scores validate continued harvesting of this market, but Porsche should start looking to new markets for its 911 series. It has thus been found that that the strategic objective Porsche should pursue with its current principle market is one of Maintain11. However, for the recommended future market, the objective is one of Growth12. With regards to the current principle market, i.e. middle-aged sports car enthusiasts looking for a relaxing carefree driving experience, with a strategic objective of maintain, Porsche should pursue a productivity focus. It must be noted that Porsche is already pursuing a productivity strategy of enhancing sales mix13, i.e. offering different versions of the 911 to different segments of the target market at different price points according to specific needs14. However, this can be further augmented by increasing price whilst offering the same benefits. Due to a poor economic climate that will not see new buyers of Porsche cars emerge, and because of their economic wealth typical buyers of 911 cars are unaffected by economic 




























































 11 i.e. leaving a business as is, without any investment of resource 12 I.e. investment of resources by the firm to expand the market/ industry sector 13 In fact Porsche is also pursuing a cost cutting strategy at the same time, i.e. achieving same number of sales with lower costs. This was achieved via Former CEO Wiedelin Wiedeking’s implementation of “lean thinking”, i.e. highly efficient production techniques and practices throughout Porsche’s production chain. 14 for example the 911 Turbo to racing enthusiasts and the 911 Carrera S to drivers looking for a care-free high speed driving experience. 20
 

  21. 21. climate and view price as an indicator of quality, it makes sense for Porsche to increase price whilst offering the same benefits. This is because a price increase (which must be within Porsche’s product category price point) will not result in a fall in sales, and in fact will increase the prestige of the 911 cars. Coupled with the fact this would increase profit margins, this is a highly recommendable strategic focus to Porsche adopt. With regards to the future customer market Porsche should pursue, i.e. luxury sports car enthusiasts seeking a compact racing car that provides excellent handling and performance, with a strategic objective of growth, Porsche should pursue a strategic focus of increasing sales volume15, more specifically winning over competitor’s customers16. As mentioned earlier, there is an increasing trend for smaller, more fuel efficient cars that “stand out from the crowd” (Blackburn, 2009). Thus Porsche is in a prime position to win back previous customers who switched to larger, traditional luxury sports cars but now want to switch back due to exorbitant fuel and maintenance costs, along with competitor’s customers who simply are seeking to switch to something easier to handle, and is easier and less costly to maintain. 6.0
Segmentation
of
Market
 In order to serve consumer needs better than competitors, it is thus critical for Porsche to understand the benefits required by their target markets. However, Porsche also needs to understand descriptor variables, such as where those consumers are located and who they are in order to adequately satisfy their needs. Therefore, a dual-approach segmentation analysis was 




























































 15 As the 911 series belong to the race car category, and due to the lack of racing venues in Australia, increasing usage rate is not a viable sales volume strategy for Porsche’s Australian market 16 Converting non-users is also unviable, as due to the current economic climate new buyers of Porsche 911 cars are highly unlikely to emerge. It must be noted however, that Porsche is utilizing the “enter new markets” strategy, which is demonstrated through its foray into the SUV and 4-door Sedan markets. 21
 

  22. 22. conducted in order to better understand the target market segments Porsche should pursue for its 911 car series. As previously discussed, due to the nature of the 911’s product category17 and the immense financial costs associated with it, it is best to conduct a segmentation analysis based on descriptor variables first, and then narrowing it down to specific benefits required. Generally, for both current and future markets, consumers would be male, around 40-50 years of age, have exceedingly high levels of disposable income18, and are luxury sports car enthusiasts. 6.1
Benefits
recognised
by
customers
 In terms of behavior variable segmentation, specifically benefits required, both current and future segments require symbolic benefits19. However, the future market segment would place more emphasis on functional benefits such as superb handling and fuel efficiency, whereas for the current market segment, symbolic benefits are more important decision-making factors, for example associated imagery with the 911 (wealth, success, carefree experience and the lack of having to prove anything to anyone). This report finds that the Porsche 911 meets the need of association with high-performance, superb handling and fuel efficiency very well due to its excellent engineering expertise. However, in terms of exclusivity, due to its foray into SUVs and 4-door sedans, this has somewhat negated the negated the exclusiveness of the Porsche brand in general, and thus this is a need Porsche fairs poorly in relation to its rivals. In terms of imagery, It would seem that 




























































 17 Exclusive luxury sports cars 18 Hence they would be able to afford the cost of a Porsche 911 series car, which starts at AUD$240,000 and can go on to AUD$400,000 19 i.e. exclusive high-performance sports car with European heritage and a history of racing success 22
 

  23. 23. Porsche is rather unique, as their strategic market position occupies a niche segment which differentiates them from their most direct competitors20, (Whitwell et.al., 2003). Therefore it can be inferred Porsche satisfies the emotional needs of its consumers. Most importantly of all, it would seem that one benefit required by all luxury sports car owners which are equally unmet by every luxury sports brand is the provision of fast effective maintenance services at a reasonable price. Currently, in the Australian market it is the dealers whom the consumers purchase their sports cars from who control access to maintenance services, allowing them to charge a price premium whenever customers require their car to be serviced. In addition, maintenance times take a long time, leaving many customers frustrated. Thus, this could be one avenue Porsche could look into to make their 911 series more attractive to consumers. 6.2
Benefits
unrecognised
by
customers
 With increased awareness in global warming, and an overall push towards more eco-friendly lifestyles amongst Australians in general, a benefit customers of both current and future markets require which has yet to be recognized by them, would be perhaps the need for fewer carbon dioxide emissions, perhaps even an electric 91121. However, as can be seen from table 3.1 in the following section, the 911 series fairs poorly in terms of carbon dioxide emissions relative to its closest rivals, and this might be an area of 




























































 20 i.e. Porsche possess a unique brand personality which sets it apart from its closest rivals and attracts their current customers to them over the competition. This stems from its associations of being of a same pedigree as Ferrari (high-performance and exclusivity), but with distinct characteristics such as youthfulness and carefree living. 21 . This is highly relevant, especially since as previously stated there is a significant possibility the Australian Federal Government might be imposing carbon-dioxide emission surcharge on all cars (Blackburn, 2009). 23
 

  24. 24. improvement Porsche should consider in future. It must be also noted that currently, performance of electric cars are quite poor, with low speeds and acceleration being achieved so far. With its engineering capabilities, it is believed Porsche would be able to make an electric Porsche 911 car a success. This is especially since Porsche is the only luxury sports car brand to have successfully built their engine in the back of the car, something which used to be considered physically impossible. Thus this demonstrates Porsche prowess in engineering, and how a fully electric or hybrid 911 should be considered to meet the unrecognized benefits required by consumers in future. 7.0
Target
Segments
 The market segment this report has chosen to target the 911 at are wealthy, 40+ males who are seeking a high performance, small compact vehicle that is easy to handle with extremely high levels fuel efficiency. Although the 911 is a good fit for many other segments (such as younger males, and couples with young families), this is the segment most likely to consider the 911 for its core competencies, rather than other augmented features. Hence, this is the segment where it is most likely that Porsche will experience the highest loyalty and profitability, and sustain these qualities into the future. 8.0
Assessing
Potential
Value
of
Customers
 8.1
Level
of
Strategic
Fit:

 
 In terms of whether the current principle market is strategic, this report finds that the resources and capabilities of Porsche do satisfy the requirements and needs of their current targeted segment. 24
 

  25. 25. Table 3.2 Level of Strategic Fit: From table 3.1, it can be observed that it has the second highest top speed, fastest acceleration and second lowest CO2. In addition, it has a brand reputation for Current Strategic Fit: excellent handling and product quality. Therefore it can be observed the Porsche 911 has the engineering expertise and Current Consumers : right brand associations to fulfill the performance requirements for current and future markets. 6 /7 Therefore for both customer segments in terms of performance which is the Future Consumers: benchmark, the 911 scores a 6/7 for strategic Fit. 6/7 Future Strategic Fit : Future Strategic fit for both groups also scores a high 6 out of 7. Once again, Porsche’s proposed merger with Volkswagen, its access to valuable Current Consumers : distribution systems, production platforms and electronic databases would enable it to continue to provide the same levels of engineering expertise as before, perhaps 6 /7 even better, with the expected increase in cost-saving synergies from the merger. Future Consumers: Hence, Porsche would be even better equipped to deliver value to their target consumers, and at lower cost. Thus Future strategic fit for both groups scores a 6/7 6/7 
 In terms of size and growth for both current and future markets, it has been found that for current markets, size and growth are declining, whereas for future market it has the potential to increase. Table 3.3 Level of Significance As discussed previously, sales in the Australian market is declining which reflects a decreasing number of 911 buyers amongst the current market (Porsche Current Level of SE, 2008). Significance: Growth of the market also seems to be falling due to brand dilution of the Porsche parent brand as a result of the introduction of the Cayenne, Cayman and Current Consumers : Panamera Series. Hence this demonstrates the falling significance of Porsche’s current target segment and the importance of targeting other markets to foster 25
 

  26. 26. 4/7 growth. Hence the overall score for Current consumer significance would be 4/7. Future Consumers: This is opposed to Future segments which scored a 3/7. Currently there is not 3/7 much incentive for consumers of other luxury brand to switch to Porsche( i.e. current significance is not good) In addition, in terms of size, the future market is rather limited, as once again, due to the high cost and nature of the product, there are only a small number of Luxury sports car buyers in the world let along Australia. Future Level of Current market segments scored a low 3/7 Significance As the current principle market is focused more on exclusivity and symbolic benefits, the push by the Porsche Parent brand to expand and further develop Current Consumers : their SUV and 4 door sedan markets would negate the brand benefits desired by this market. Hence attractiveness of the brand ( I.e., the favourability of the 3/7 brand image would decline, thus it is expected that size ( number of Porsche buyers ) along with growth would decline in the future. Future Consumers: Although number of future customers are still rather limited, potential growth is promising as there seems to be a trend for smaller, more compact size cars with 5/7 better handling but still with a certain degree of exclusiveness (Blackburn, 2009), thus there might be a high likelihood of customers from various segments shifting to the future segment Porsche would be serving. This would be further aggravated by the expected price hike in oil prices three years down the road, along with the high potential of Carbon dioxide emission taxes imposed by the Federal Government. Thus the fuel-efficiency of Porsche would be highly attractive to the new market, increasing the significance of the Porsche 911 benefits to consumers. 
 Despite the high substitutability of vehicles in the premium market, some consumers can be extremely brand loyal and accept no substitutes. Some brands have cult followings for particular models, or for the brand as a whole. These loyalties tend to brew in consumers from a young age (‘hero’ cars plastered on bedroom walls), or they can manifest after a positive purchase experience that leaves the buyer smitten for the brand.
 
 
 26
 

  27. 27. 3.4 Degree of Loyalty. Brand loyalty for Porsche is high but is exclusive to the 911 • Research in North America indicated that 41.6% of Porsche buyers were loyal Current Degree of (defined as repeat buyers), and it is believed that this statistic can be generalised Loyalty: to the Australian market. These loyalists will religiously buy a new 911 every time Porsche releases one, regardless of their need or of any perceived difference Current Consumers : • However, in stark contrast to the hardcore loyalists there are many buyers who 5/7 possess no or little loyalty to Porsche, and simply view the vehicles as a brand purchase. Overall, Porsche have a significant set of ‘guaranteed’ customers, and their quality has assured a significant amount will be retained in the future. Future Consumers: Hence generally loyalty for current consumers would be a 5/7. In terms of Future 3/7 consumers, loyalty has yet to be established due to a lack of relationships existing between the segment and the firm, thus currently, loyalty to Porsche would stand at 3/7. Future Degree of Loyalty By nature, loyal consumers will not have their preferences changed by anything, and hence there will still be a large cohort of future consumers who are loyal to the 911. However, those who are only moderately loyal to the brand may find Current Consumers : that the ongoing brand dilution attracts them away from Porsche, and hence over 4/7 time brand loyalty will gradually decline. Many consumers are loyal because they grew up with the 911 (they are the same ‘age’ as the car), and as these customers disappear the intensely loyal consumers may be few. Future Consumers: Hence future loyalty for current consumers will decline from 5/7 to 4/7. 5/7 However, assuming Porsche has established dialogue with its future consumers via advertising, promotions, and marketing, there should be seeds of relationship being planted. Thus in the long term, this report finds that the future degree of loyalty of future consumers has the ability to increase in future. 
 
 It has been found that in the current market, the current principle target segment is more profitable to serve, whereas three years later, the future market would be more profitable to serve. 27
 

  28. 28. Table 3.5 Degree of profitability With its efficient production practices and distribution systems in place, generally it would be profitable to serve both markets. However, currently there Current Degree of is not as much incentive for future consumers to switch. Furthermore, as the benefits of Porsche are not very appealing at this point of time therefore future Profitability: consumers are unwilling to pay a premium for the benefits offered by the Porsche 911. Hence current profitability of future consumers is low, i.e. (3/7). Current Consumers : This is in contrast to current consumers, who due to brand appeal and image, 4/7 along with functional benefits still have reason to continue purchasing 911 cars, as reflected in the (although significantly lesser by 12%) level of sales compared Future Consumers: to the previous financial year (Porsche SE, 2008). . 3/7 Hence the score moderate score of 4/7 for current profitability of current consumers. Future Degree of Once again, the acquisition of Porsche by Volkswagen has enabled created access to huge cost-saving synergies through the sharing of distribution Profitability: platforms, technology etc. Current Consumers : However, although the costs of serving Current consumers are the same. Due to 4/7 changes in environmental trends the benefits of Porsche’s 911 become more relevant to the needs of future consumers. Thus advertising and promotions would be more effective, and future consumers would be more willing to pay a Future Consumers: price premium for Porsche 911’s benefits. 6/7 Thus the score of Current Consumers remains the same (4/7), where as future profitability of future consumers rises to 6/7 
 Table 3.6 Overall potential value Overall Current Potential Overall Future Potential Value Value Current Customer 4.75/7 4/7 Segments Future Customer 2.14/7 5.5/7 Segments 28
 

  29. 29. 
 After summing all the scores to determine the potential value of both customer segments, two major findings have been discovered22: Although currently very low, potential value of future segments seems to increase over time, hence justifying the pursuit of this market. Secondly, the over-all future potential value of the current principle market is decreasing from its current levels, which also justifies Porsche targeting a new segment for its 911 series over the long run. 9.0
Competitors
Analysis
 9.1
Competitors
to
911
 
 The 911’s competitors are defined by brand, price and performance merits, with direct23 competitors being most clearly defined by brand. Due to the large range of models in the 911 range (ranging in price from $220,000-$450,000), the 911 competes with some unexpected outliers, such as the Nissan GT-R and Lamborghini Gallardo, which have very different brand images. This assessment is based on brand image as perceived by the consumer and the media, and hence represents the evoked set a customer might evaluate. 




























































 22 i.e. future potential value is much higher than current potential value 23 Indirect or incipient competitors are of less concern to Porsche due to their high differential advantage. Further, there are such a high number of direct competitors that Porsche needs to maintain their focus on immediate competition rather than obtuse possibilities. 29
 

  30. 30. Brand/Model RRP (AUD) Differentiation Strategy Relative to Porsche Porsche 911 $220,000 • Rear engined • Available in Coupe, Cabriolet -$450,000 • Can be used as a day-to-day car or Targa in Carrera, Carrera S, • High performance, little-compromise GT or Turbo configuration. Aston Martin V8 Vantage $260,000+ • Exclusivity and service • Available in Coupe or • Higher brand value (‘Bond’) Roadster • Style & luxury • Targeted directly at the 911 Audi R8 $280,000+ • 4WD, V8 or V10 • Available in Coupe only • New entrant (innovator image) • Targeted directly at the 911 BMW M6 $290,000+ • High-technology ‘M’ drive • Available in Coupe or • Targeted at the 911 but a closer competitor Convertible to Mercedes Ferrari F430 $430,000+ • Higher brand value (synonymous with F1 Available in Coupe, Convertible and supercars) or Scuderia • Exclusivity and service • Usable as a track car • Competes with the 911 Turbo but more closely targeted to Lamborghini Jaguar XKR $240,000+ • Luxurious Available in Coupe or • Different brand image (‘royal’) Convertible • Not targeted at the 911 (closer target to the Aston Martin Vantage and Mercedes CL/SL) but substitutable for some customers Lamborghini Gallardo $480,000+ • Higher brand value (synonymous with Available in Coupe, Spyder or supercars) Superleggera (lightweight) • Exclusivity and service • Usable as a track car • Competes with the 911 Turbo but targeted at the Ferrari F430 Maserati Granturismo $300,000+ • Luxurious touring car Available in Coupe, ‘S,’ and • Different brand image (Italian, passionate) soon-to-be-released • Exclusivity and service Convertible • Somewhat isolated and not targeted at the 911, but is a substitute for some customers 30
 

  31. 31. Mercedes-Benz CL $320,000+ • Discreet Available in Coupe only • Luxurious • Different brand image (wealth, luxury) • Not targeted at the 911 but competes on different merits Mercedes SL $240,000+ • Discreet Available in Convertible only • Luxurious • Different brand image (wealth, luxury) • Hard-top convertible • Not targeted at the 911 but competes on different merits Nissan GTR $160,000+ • High performance for lower price Available in Coupe only • ‘Godzilla’ fame/brand image • Targeted directly at the 911 Turbo Source: www.carsales.com.au Due to differences in brand image, not all consumers will consider all of the above vehicles to be the 911’s direct competitor. Rather, consumers’ choice depends on their own preferences for brand, performance, exclusivity or price. In most scenarios, the most direct substitutes are believed to be the Aston Martin V8 Vantage, Audi R8 and BMW M6. These vehicles were all recently introduced as a direct competitor to the 911 and have gained significant share. Worldwide24 sales figures are shown below to give an indication of the popularity of each. Worldwide Sales in 2008 (Approx) Aston Martin ~3,000 V8 Vantage Expected - actual results not available (private company) Audi R8 ~5,000/year 




























































 24 Unfortunately, yearly sales are not available on a per-market basis for all brands. 31
 

  32. 32. BMW M6 ~20,000/year Across all 6-series models Porsche 911 ~31,400/year All 911 models 
 9.2
Identification
&
Prediction
of
Competitor
Strategies
 
 The Vantage, R8 and M6 are all new entrants to the premium sports car market, having been introduced within the past 6 years. This ‘youthful’ perception has helped them gain market share quickly, though this would not have been possible without the backing of an already high-profile brand. Although these vehicles have been overtly pitched directly against the 911, their success does not depend on the 911’s failure, and indeed there is room for them all to co-exist. Aston Martin Vantage Aston Martin is pursuing a differentiation strategy that focuses on higher brand values and exclusivity. The Vantage does not match the 911 in performance (though it comes close), but exceeds it for luxury, build quality and brand, which is known for characterful cars and the ‘Bond’ image. Loyalty to Aston Martin is intensely high. Aston Martin is likely to improve the performance of the Vantage over time with the aim of equalling the 911 on acceleration and lap times. However, it is obvious that Aston Martin, who sell only 5000 cars each year, do not have the capacity to overtake Porsche’s 31,400 vehicles a year. Indeed, this is a deliberate strategy, and as a private company Aston have remained deliberately small to capitalise on brand differentiation. 32
 

  33. 33. Audi R8 Audi are also pursuing a differentiation strategy that focuses on performance and characteristics not often seen in the segment. The R8 is the only vehicle to feature a V10 and four-wheel-drive, hence making the driving experience significantly different to any others but a close match for Porsche. Audi’s brand is known for build quality and reliability, and although loyalty is not high they are highly regarded. Ahead, Audi are likely to maintain similar specifications for the 911 but target it more intensely at the 911 through aggressive promotions. Unlike Aston Martin, Audi have the capacity to challenge the 911 in sales volume. However, Audi and Porsche are now both owned by the Volkswagen Group, and it is uncertain whether intense competition between sibling brands will be permitted. BMW M6 BMW are pursuing a differentiation strategy that focuses on high technology and innovation. Although the M6’s overall performance is less than the 911, it features advanced computer management systems25 that are targeted at the innovator market. BMW are known for ‘driving pleasure’ and high performance but like Porsche their brand has been diluted recently, and hence loyalty is lower (although higher than Audi). Forward, it is uncertain whether BMW will maintain or divest early, as the 6-series was traditionally a limited-run vehicle. It is most likely that BMW will increase the performance and 




























































 25 Drivers have full control over engine output, throttle and transmission response and aggressiveness of ride. 33
 

  34. 34. try and target buyers below the price point of equivalent 911’s. BMW do have the capacity to challenge the 911 on sales volume. 10.0
Conclusion
 Excellence in marketing drives corporate value. In order for that to be achieved, marketers need to drive firms towards the most attractive markets and develop a sustainable competitive advantage within those markets (Lukas, 2009). This report assessed how the Porsche 911 series of cars in the Australian Luxury Sports car market could not serve its current principle market well enough to claim that it had a sustainable competitive advantage in that market, and thus should investigate options for other markets which it could serve better in the long run. In selecting a new segment for Porsche to target its 911 series of cars to, industry and environmental factors were considered, such as socio-cultural trends and regulations that could help the Porsche 911 make its benefits more appealing to customers. In addition, Porsche’s internal resources and capabilities were also analyzed, and it was found that Porsche’s main sustainable competitive advantage was its lean production techniques that were further enhanced by cost-saving synergies from its acquisition by Volkswagen. Thus, based on the above factors, it was found that 40 year Australian old men who were wealthy, and desired small compact cars that were known for their excellence in engineering and performance, were exclusive and unique, and had excellent fuel-efficiency capabilities was suggested, as their benefits required were a match with the resources and capabilities of the Porsche 911 series. 
 34
 

  35. 35. Appendix: Description of the Porsche 911: The 911 is currently a key player in the premium Australian sports car market, although some models extend to the supercar market. The market is broad and covers a wide range of vehicles and uses, and indeed the 911 is used as both a day-to-day car (911 Carrera/S) and a hard-edged track car (911 Turbo). Over time, Porsche have added breadth to the 911 range by introducing new models and variations of the original car, for example the 911 GT3 for hardcore racing enthusiasts, and the 911 Carrera Cabriolet for drivers seeking a relaxed driving experience, in order to target different market segments with different needs/ benefits required to grow their market share and profits. 
 
 
 
 
 
 35
 

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&
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  37. 37. 
 Strategic
assessment
of
the
Porsche
911
Series
In
the
Australian
Market
 [TAKE‐HOME
ASSIGNEMENT
NUMBER
(#1)]
 
 
 
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TEAM
MEMBER
NAME]
 
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NUMBER]
 



Khai
Hoong
Leong























275059
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TEAM
MEMBER
NAME]
 
 [STUDENT
NUMBER]
 James
Andrew
Davies























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Tam
























324214
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Yu
Ling






























333694
 
 
 
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MEMBER’S
CONTRIBUTION:

 
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315694








100%
 Maric
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Chak
Tam

























324214








100%
 
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ASSIGNE
0‐100%]
 
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SIGNATURE]:
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FOR
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PLEASE
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  38. 38. Strategic
assessment
of
the
Porsche
911
Series
In
the
Australian
Market
 [TAKE‐HOME
ASSIGNEMENT
NUMBER
(#1)]
 
 
 
 [FIRST
TEAM
MEMBER
NAME]
 
 [STUDENT
NUMBER]
 

Maric
Wai
Chak
Tam






















324214
 
[SECOND
TEAM
MEMBER
NAME]
 
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NUMBER]
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Hoong
Leong

























275059
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Andrew
Davies






















315694
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Yu
Ling





























333694
 
 
 
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TEAM
MEMBER’S
CONTRIBUTION:

 
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MEMBER
NAME]
 
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NUMBER]
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Hoong
Leong




























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315694








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Ling
































333694








100%
 
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ASSIGNE
0‐100%]
 
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