Management and Leadership Presentation

1. STRATEGIC ANALYSIS
REPORT KOSTAL GROUP
CALUM ENNIS C00218253
LIAM O’BRIEN C00216718
BARRY O’DRISCOLL C00215072

2. COMPANY OVERVIEW
• Originally established in 1912, Entered
the automotive market in 1927 and
industrial electrical market in 1995. Kostal
Ireland GmbH, was set up on Thursday
the 30th of March 1995.
• Produce a wide range of products for the
worldwide automotive industry.
• family run company and preach specific
company values, such as “We are down
to earth”, “We are honest”, “We make it
simple”, “We do it with feeling”.

3. PESTLE
• POLITICAL – UK SEPERATING ITSELF FROM THE EU, TARIFFS PLACED ON
GOODS IMPORTED FROM EU TO UK
• ECONOMICAL – OPENING UP OF MARKETS IN LESS DEVELOPED AND
DEVELOPING COUNTRIES
• SOCIAL – POPULARITY OF DRIVING AND HAVING A CAR IS HUGE NOWADAYS
• TECHNOLOGICAL – SELF DRIVING CARS (TESLA) SO MANUFACTURERS HAVE
TO CHANGE STRATEGY TO STAY RELEVANT
• LEGAL – EMISSION CONTROL LAWS - VEHICLES BEING EXPORTED
OVERSEAS
• ENVIRONMENTAL – EMISSION AND POLLUTANT HUGE ISSUE

4. PORTERS FIVE FORCES
• Competitive Rivalry: limited competitors as the market. The only manufacturer in Ireland - lack of rivalry. No clear competition between
“competing” brands which is extremely beneficial to Kostal. Kostal are in a good rivalry position to achieve higher sales and profits.
• Supplier Power: Use raw materials to create their product. No information on how they receive their raw materials. Use raw materials
such as plastic and metal – we can assume that they can receive it from a huge array of suppliers. Many plastics and metals suppliers
in Ireland such as Impact Ireland and Goldstar Plastics - large selection to buy at the lowest possible price.
• Buyer Power: Supply companies such as BMW, Volkswagen and Mercedes. Large companies who buy car parts in bulk - buyers have
power dictate prices. On the other hand Kostal are the only company that make certain parts for these companies - Kostal in an
extremely strong position as its difficult for the companies to source the products elsewhere.
• Threat of Substitution: Supplies high quality and unique products to consumers – May try to source or make these products cheaper.
This is always a threat, although Kostal supplies such high quality throughout their products it would be almost impossible for their
customers to replicate such products.
• Threat of New Entry: Difficult for a new competitor to enter the market. Automotive parts supplying market is niche and expensive. If
new business wanted to compete in this market - facilities to make the products, which is extremely expensive - must find qualified staff -
must find customers. All automotive companies already have suppliers - Almost almost impossible to secure and develop a successful
business in this market.

5. TOWS
• SO – Created their own system (PIKO BA) that produces electricity.
• ST – Kostals strong brand name will allow them to fight off competition in the
automotive electronic industry.
• WO – Branch out into other regions outside of Europe to avoid downfall.
• WT – Supply to more car companies to avoid relying on certain company sales.

6. VRIO
• Value – No close competitors in the Irish market.
• Rarity – Highly educated workforce.
• Inimitability – Kostal create their own systems and products that are difficult to
replicate.
• Organisation – Kostal are in a good position to take any opportunities that arise.

7. PROPOSED STRATEGY
• GREAT OPPORTUNITY
BRANCH OUT EXPANDING INTO ASIAN MARKET SUPPLY TO HONDA AND
TOYOTA
• BE SUSTAINABLE IN FUTURE
ADAPT ELECTRIC POWER CARS AND CONTINUE WITH SOLAR POWER
• SUPPLY TO TESLA
LEADING ELECTRIC POWERED CARS
PROMOTE KOSTAL NAME IN BIGGER MARKETS

8. KEY PIECES OF LEARNING
• Kostal are a very innovative company.
• No close competitors in the Irish market.
• The company has a strong brand name.
• The company faces challenges such as a recession.
• Kostal is a sustainable company.

9. ANY QUESTIONS?