Porsche has a long history dating back to 1931. It struggled financially during the 2008 crisis but was acquired by Volkswagen in 2010. Volkswagen's plan is to fully integrate Porsche by 2011, which risks diluting the brand. Porsche faces challenges retaining executives and customers as it expands its product line under Volkswagen ownership. It must also address tightening emissions regulations that threaten its US market. Porsche will help Volkswagen achieve its strategic goal of becoming the top automaker by 2018 through technology sharing and diversification, but maintaining its brand strength and customer loyalty will be critical.
This project aimed at building up the business model canvas of Porsche. In particular the focus is about the market introduction of the new Porsche mission e.
This project aimed at building up the business model canvas of Porsche. In particular the focus is about the market introduction of the new Porsche mission e.
Disclaimer - None of the images used are mine. No copyright infringement intended. I will take down the slides if any person or entity will claim copyright rights over the images.
Analysis of BMW mini case from Kotler's Marketing Management textbook.
This presentation was created by Shashank Srivastava, IET Lucknow during a Marketing internship under the guidance of Prof. Sameer Mathur, IIM Lucknow.
Porsche, a German manufacturer of luxury high performance automobiles, was started as a company called “Dr. Ing. h. c. F. Porsche GmbH” by Ferdinand Porsche. Initially the company didn’t build any cars under its own name and offered consultancy for motor vehicle development. This company is known for designing the first Volkswagen car, Volkswagen Beetle. Ferdinand turned this company into Porsche in 1931, but the first Porsche car wasn’t introduced till 1939.
Ferrari was facing the threat of the market share shrinkage from resurgence of the fierce competitor Porsche. It is trapped in the dilemma of regaining the dorminance of the profitable Chinese market at the risk of brand dilution.
Bearing this in mind, we interviewed Ferrari's users as well as targeted users, and decode their emotional bondings with the car category(masculine embodiment) and the brands they care about. We shared their passion, love, fear, despair...
Finally, we integrated those findings into our strategic implications and tried to save men's beloved brand from danger of brand equity dilution.
Disclaimer - None of the images used are mine. No copyright infringement intended. I will take down the slides if any person or entity will claim copyright rights over the images.
Analysis of BMW mini case from Kotler's Marketing Management textbook.
This presentation was created by Shashank Srivastava, IET Lucknow during a Marketing internship under the guidance of Prof. Sameer Mathur, IIM Lucknow.
Porsche, a German manufacturer of luxury high performance automobiles, was started as a company called “Dr. Ing. h. c. F. Porsche GmbH” by Ferdinand Porsche. Initially the company didn’t build any cars under its own name and offered consultancy for motor vehicle development. This company is known for designing the first Volkswagen car, Volkswagen Beetle. Ferdinand turned this company into Porsche in 1931, but the first Porsche car wasn’t introduced till 1939.
Ferrari was facing the threat of the market share shrinkage from resurgence of the fierce competitor Porsche. It is trapped in the dilemma of regaining the dorminance of the profitable Chinese market at the risk of brand dilution.
Bearing this in mind, we interviewed Ferrari's users as well as targeted users, and decode their emotional bondings with the car category(masculine embodiment) and the brands they care about. We shared their passion, love, fear, despair...
Finally, we integrated those findings into our strategic implications and tried to save men's beloved brand from danger of brand equity dilution.
An analysis of Automobile Lamborghini S.p.A. as well as its sister concerns falling under the Lamborghini family. It provides an overview of the brand positioning, the values, brand identity and brand equity, analysis of competitors, etc.
Porsche's current scenario as explained in the case and swot analysis and porter's five forces model and what all solutions could be drawn and their pros and cons are listed out.
Ashford 3: - Week 2 - Assignment
Porsche’s Analysis [CLOs: 2,6]
Read the Porsche case provided in the course materials section and describe the company’s history, products, and major competitors in a paragraph or two. Assess the financial performance and condition of the organization. Then, conduct a SWOT analysis detailing the strengths, weaknesses, opportunities, and threats that may affect the organization. Finally, assess the quality of the decisions made by the company and provide recommendations for improvement. (NOTE: This will become part of your final paper).
Your paper must be five to six pages in length (excluding the title and reference pages), incorporate at least two scholarly sources from the Ashford University Library (other than the case and textbook), and be formatted according to APA style guidelines as outlined in the Ashford Writing Center.
Carefully review the
Grading Rubric
for the criteria that will be used to evaluate your assignment.
What’s Driving Porsche?
Rebecca Henderson, Cate Reavis
There are some customers who love the idea that an engineer working on their project in the afternoon was the same guy working on a 911 motor in the morning.
—Managing Director, Porsche Engineering Group
1
We were working with Volkswagen on the next generation of the Cayenne (which shared its structure with the VW Touareg and Audi Q7) and I wanted a clear connection to safeguard Porsche’s interests. We could not do this alone.
—Porsche CEO Wendelin Wiedeking, on decision to acquire VW
2
In early March 2008, Porsche’s supervisory board, which included the chairman of the Volkswagen Group, Ferdinand Piëch, agreed to raise its holding in Volkswagen from 31% to 50% giving it a majority stake.
Porsche’s takeover of VW was seen by many as a wise move for the small, independent car company that, unlike rival brands Jaquar, Ferrari, Lamborghini, and Lotus, had managed to avoid being gobbled up by the auto industry’s behomoths the likes of General Motors, Chrylser and Ford. There was, however, a key strategic question about Porsche’s acquisition of VW that was not receiving a lot of press: Would the long-term stability of Porsche’s engineering and design prowess be at risk by bringing VW "in-house"?
1
Scott Miller, "Road More Traveled,"
The Wall Street Journal
, August 21, 2002.
2
Ray Hutton, "Porsche Set to Take the Wheel at VW,"
The Sunday Times
, October 14, 2007.
WHAT’S DRIVING PORSCHE?
Rebecca Henderson and Cate Reavis
AUGUST 25, 2009 2
3
Bret Orekson, "Engineering Is Porsche’s Secret Weapon,"
Automotive News
, January 15, 2001.
4
Adler, Dennis,
Porsche: The Road from Zuffenhausen
, 2003, p. 76.
5
Jeremy Cato, "Porsche Revs Up for Explosive Growth,"
The Globe and Mail
, February 22, 2007.
6
€1 = US$1.47 (December 31, 2007)
7
Gail Edmondson, "Pedal to the Metal,"
BusinessWeek
, September 3, 2007.
Engineering and design were considered the hallmarks of Porsche’s competitive advantage, and rather t.
An extensive product portfolio analysis on market requirements for developing, launching and positioning new products with a comparative case study for Porsche and Ferrari in branding strategies according to market opportunities and threats of luxury automotive industry in Europe.
IntroductionIn 1895 in Czechoslovakia, two keen cyclists, .docxnormanibarber20063
Introduction
In 1895 in Czechoslovakia, two keen cyclists, Vaclav Laurin and Vaclav Klement, designed
and produced their own bicycle. Their business became Škoda in 1925. Škoda went on to
manufacture cycles, cars, farm ploughs and airplanes in Eastern Europe. Škoda overcame
hard times over the next 65 years. These included war, economic depression and political
change. By 1990 the Czech management of Škoda was looking for a strong foreign partner.
Volkswagen AG (VAG) was chosen because of its reputation for strength, quality and
reliability. It is the largest car manufacturer in Europe providing an average of more than
5 million cars a year – giving it a 12% share of the world car market. Volkswagen AG
comprises the Volkswagen, Audi, Škoda, SEAT, Volkswagen Commercial Vehicles,
Lamborghini, Bentley and Bugatti brands. Each brand has its own specific character and is
independent in the market. Škoda UK sells Škoda cars through its network of independent
franchised dealers.
To improve its performance in the competitive car market, Škoda UK’s management needed
to assess its brand positioning. Brand positioning means establishing a distinctive image for
the brand compared to competing brands. Only then could it grow from being a small player.
To aid its decision-making, Škoda UK obtained market research data from internal and
external strategic audits. This enabled it to take advantage of new opportunities and respond
to threats.
The audit provided a summary of the business’s overall strategic position by using a SWOT
analysis. SWOT is an acronym which stands for:
• Strengths – the internal elements of the business that contribute to improvement and
growth
• Weaknesses – the attributes that will hinder a business or make it vulnerable to failure
• Opportunities – the external conditions that could enable future growth
• Threats – the external factors which could negatively affect the business.
This case study focuses on how Škoda UK’s management built on all the areas of the
strategic audit. The outcome of the SWOT analysis was a strategy for effective competition in
the car industry.
Strengths
To identify its strengths, Škoda UK carried out research. It asked customers directly for their
opinions about its cars. It also used reliable independent surveys that tested customers’
feelings. For example, the annual JD Power customer satisfaction survey asks owners what
they feel about cars they have owned for at least six months. JD Power surveys almost 20,000
car owners using detailed questionnaires. Škoda has been in the top five manufacturers in this
survey for the past 13 years. In Top Gear’s 2007 customer satisfaction survey, 56,000 viewers
gave their opinions on 152 models and voted Škoda the ‘number 1 car maker’. Škoda’s
Octavia model has also won the 2008 Auto Express Driver Power ‘Best Car’.
133
SWOT analysis in
action at Škoda
CURRICULUM TOPICS
• Strengths
• Weaknesses
• Opportunities
• Threats
GLO.
Introduction
Four Functions Approach
Important Success Factors
Challenges that will face next 5 years
Findings
Recommendation
Solar Power and Tidal
Resignation of Volkswagen's CEO Martin Winterkorn
Who is liable if collision occurs?
i. Planning
Long-term objectives
Strategies
Difficulty of individual goals
ii. Organizing
Employees report to me
Centralisation or Decentralisation
iii. Controlling
iv. Leading
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Why Is Your BMW X3 Hood Not Responding To Release CommandsDart Auto
Experiencing difficulty opening your BMW X3's hood? This guide explores potential issues like mechanical obstruction, hood release mechanism failure, electrical problems, and emergency release malfunctions. Troubleshooting tips include basic checks, clearing obstructions, applying pressure, and using the emergency release.
The Octavia range embodies the design trend of the Škoda brand: a fusion of
aesthetics, safety and practicality. Whether you see the car as a whole or step
closer and explore its unique features, the Octavia range radiates with the
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Here’s a handy guide to dashboard symbols so that you’ll never be confused again!
Save them for later and save the trouble!
Fleet management these days is next to impossible without connected vehicle solutions. Why? Well, fleet trackers and accompanying connected vehicle management solutions tend to offer quite a few hard-to-ignore benefits to fleet managers and businesses alike. Let’s check them out!
What Are The Immediate Steps To Take When The VW Temperature Light Starts Fla...Import Motorworks
Learn how to respond when the red temperature light flashes in your VW with this presentation. From checking coolant levels to seeking professional help, follow these steps promptly to prevent engine damage and ensure safety on the road.
What Could Cause The Headlights On Your Porsche 911 To Stop WorkingLancer Service
Discover why your Porsche 911 headlights might flicker out unexpectedly. From aging bulbs to electrical gremlins and moisture mishaps, we're delving into the reasons behind the blackout. Stay tuned to illuminate the road ahead and ensure your lights shine bright for safer journeys.
In this presentation, we have discussed a very important feature of BMW X5 cars… the Comfort Access. Things that can significantly limit its functionality. And things that you can try to restore the functionality of such a convenient feature of your vehicle.
𝘼𝙣𝙩𝙞𝙦𝙪𝙚 𝙋𝙡𝙖𝙨𝙩𝙞𝙘 𝙏𝙧𝙖𝙙𝙚𝙧𝙨 𝙞𝙨 𝙫𝙚𝙧𝙮 𝙛𝙖𝙢𝙤𝙪𝙨 𝙛𝙤𝙧 𝙢𝙖𝙣𝙪𝙛𝙖𝙘𝙩𝙪𝙧𝙞𝙣𝙜 𝙩𝙝𝙚𝙞𝙧 𝙥𝙧𝙤𝙙𝙪𝙘𝙩𝙨. 𝙒𝙚 𝙝𝙖𝙫𝙚 𝙖𝙡𝙡 𝙩𝙝𝙚 𝙥𝙡𝙖𝙨𝙩𝙞𝙘 𝙜𝙧𝙖𝙣𝙪𝙡𝙚𝙨 𝙪𝙨𝙚𝙙 𝙞𝙣 𝙖𝙪𝙩𝙤𝙢𝙤𝙩𝙞𝙫𝙚 𝙖𝙣𝙙 𝙖𝙪𝙩𝙤 𝙥𝙖𝙧𝙩𝙨 𝙖𝙣𝙙 𝙖𝙡𝙡 𝙩𝙝𝙚 𝙛𝙖𝙢𝙤𝙪𝙨 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙗𝙪𝙮 𝙩𝙝𝙚 𝙜𝙧𝙖𝙣𝙪𝙡𝙚𝙨 𝙛𝙧𝙤𝙢 𝙪𝙨.
Over the 10 years, we have gained a strong foothold in the market due to our range's high quality, competitive prices, and time-lined delivery schedules.
5. Porsche’s Background
History of Porsche
“I couldn’t find the sports car of
my dreams, so I built it myself”
(Ferdinand Porsche)
Ferdinand Porsche founded the company in 1931, with
main offices in the centre of Stuttgart, Germany.
Initially, the company offered motor vehicle development
work and consulting, but did not build any cars under its
own name.
5
6. Porsche’s Background
6
One of the first assignments – from the German
government to design a car for the people, the
"Volkswagen".
This resulted in the Volkswagen Beetle, one of the most
successful car designs of all time. The Porsche 64 was
developed in 1939 used many components from the
Beetle.
On 15 December 1945, Ferdinand was arrested for war
crimes, but not tried.
7. Porsche’s Background
7
During his 20-month imprisonment, Ferdinand Porsche's
son, Ferry Porsche, decided to build his own car, because
he could not find an existing one that he wanted to buy.
He also had to steer the company through some of its most
difficult days until his father's release in August 1947.
The first models of what was to become the 356 were built
in a small sawmill in Gmünd, Austria.
Tagline: “Porsche. There is no substitute”
8. Porsche’s Background
8
Our Mission Statement:
We are committed to provide impeccable service to
our demanding clientele of premium cars.
Pay our customers with the greatest possible attention
and care in all aspects of the business.
To create a connection in the workplace, with shared
passion for our vision and goals.
To have motivated, hard working and empowered
employees.
Maintain commitment to our corporate social responsibility.
9. Porsche’s Background
9
Our Vision:
‘Look towards the future with the knowledge of our past.’
Passion - our commitment touches our hearts and minds
to develop our company further with time.
Leadership - the courage to shape a better future and be
flexible and proactive.
Innovation - we search, we imagine, we create , we
delight but at the same time honour and protect the
traditions and policies of our franchises.
Our vision for the future is to represent both volume and
premium brands and be the number one company in
terms of after sales and customer service.
10. Porsche’s Background
10
Our Values:
Responsibility: Our responsibility is care for our customers
and value our employees and be sensitive towards social
and environmental issues.
Trust: Work hard daily to build mutual trust with our
colleagues and partners.
Teamwork: Respecting and valuing our employees and
creating a positive work environment.
12. Case Summary
12
Porsche – independent and successful car maker for over
100 years
Fell victim to the 2008 financial crisis – failed to secure
the capital needed to acquire a controlling stake in VW Auto
Group.
In 2010 reverse takeover – Porsche forced to hand over
keys to VW
By 2011 produced 5 models with a combined total of 40
different trim levels
Increased diversification brought higher shareholder
returns.
13. Case Summary
13
Global economy struggle and recession, unemployment in
US and Europe have made consumers extremely sensitive.
Climate for most automakers in 2007 was challenging, same
for Porsche
Porsche competes in a market segment where relatively few
can compete
Requires sizable capital investments
Porsche has a accumulated a wealth of technology expertise
and employs some of the brightest engineering minds in the
world
Porsche has consistently developed class-leading
technologies that competitors find difficult to imitate
14. Case Summary
14
Porsche has been diversifying its international scope.
Porsche has been providing the best long-term reliability
of any brand in the US
Porsche has forged strategic partnerships with other
automakers to keep its business on the cutting edge
Customers buy Porsche because of its innovative features,
exceptional styling, and European origin
Porsche has been able to produce equal performance and
prestige, yet at more affordable prices range compared to
BMW M6, Mercedes-Benz SL-class, etc
15. Case Summary
15
VW’s plan is to integrate the Porsche brand into the group
by the end of 2011 via a multi-stage transaction:
Porsche is expected to contribute to the group synergy
and help other brands
Porsche would no longer solely focus on it is traditional
target customer
Porsche would instead be forced to appeal multiple
consumer segment
Porsche faces risk of diluting its brand, alienating its
customer base.
17. Issues Highlight
17
Porsche is under financial crisis because in 2008 it failed
to secure the capital needed to acquire Volkswagen,
instead in 2010, there was a reverse takeover and
Porsche was acquired by VW.
Porsche will face a problem of moving its executives and
experienced management by VW into key roles with other
automotive brands as part of integration plan into VW
Family.
18. Issues Highlight
18
Potential Brand dilution will happen since its switching
from focus approach to broader market to extend the
Porsche product line.
How the market would react to multiple sports cars
offerings from Audi, Lamborghini, Porsche…etc.
Porsche’s greatest challenge would be the impeding
CAFÉ regulations (regulations that could spell an end to
Porsche’s sales in its number one market, US).
20. PESTLE Analysis
20
POLITIC/LEGAL:
Creating more fuel efficient sport cars.
New regulation, such as CAFE in the US and government control in
communist/socialist countries. Under the direction of President Obama,
the National Highway Traffic Safety Administration and the EPA
increased the mpg requirements for all cars in the US through an old
emissions policy known as Corporate Average Fuel Economy (CAFÉ).
ECONOMIC:
Global recession in US and Europe and increase in fuel prices. Oil
prices were at record highs, topping $100 a barrel.
Consumers were extremely price sensitive and unemployment in the
US hovered around 10%
21. PESTLE Analysis
21
SOCIAL/ENVIRONMENT:
More environmentally conscious population
TECHNOLOGY:
The seven-gear Porsche Doppelkupplung (PDK) system
The Porsche Torque Vectoring (PTV) system
Equity interest in MHP-IT Technology group
Leader in R&D, constant pressure from other sports’ car
manufacturers
23. SWOT Analysis
23
STRENGTHS
1. Best quality for comparatively low prices – long-term
reliability for high-performance cars, sedans, SUVs, trucks,
etc
2. Stuttgart plant – the best car factory in the world
3. Consistently innovative with class-leading technologies
4. Strategic alliances with other automakers
5. Diversification – SUV (Cayenne), 4-door sedan
(Panamera)
6. Strong brand image
7. Customer loyalty – those who value innovation and
independence
8. Lean production practices
9. All models (except Boxster/Cayman) are produced in
Germany
10. Skilled workforce
WEAKNESSES
1. Concentrates more on
exportation vs international
expansion, acquisition and
licensing
2. Small compared to
competitors
3. Weak financially – victim
of 2008 financial crisis
4. Brand dilution
5. Conflict between the
executives and management
of Porsche and VW
24. SWOT Analysis
24
OPPORTUNITIES
1. Strong economic support in
homeland Germany
2. Supportive manufacturing
infrastructure in Germany
3. Expansion to China
4. Efficient international expansion –
greater economies of scale, increases
market penetration
5. Global strategy – same models for
the whole world leads to bigger
international market
6. Wealth of resources upon joining the
VW group
THREATS
1. Alienation of customer base
2. Losing competitive advantage
3. CAFÉ regulations to be enforced
in 2020 will cause Porsche to lose
its US market share
26. TOWS Analysis
26
STRENGTHS
S2. Stuttgart plant – the best car
factory in the world
S3. Consistently innovative with class
leading technologies
S6. Strong brand image
S8. Lean production practices
S10. Skilled workforce
OPPORTUNITIES
O1. Strong economic support in
homeland Germany
O2. Supportive manufacturing
infrastructure in Germany
O6. Wealth of resources upon joining
the VW group
SO STRATEGY 1:
Maintain and improve product quality of current models and develop new
models through continued innovation and technological advancement
27. TOWS Analysis
27
STRENGTHS:
S1. Best quality for comparatively low prices
– long-term reliability for high-performance
cars, sedans, SUVs, trucks, etc
S4. Strategic alliances with other automakers
S5. Diversification – SUV (Cayenne), 4-door
sedan (Panamera)
S7. Customer loyalty – those who value
innovation and independence
S9. All models (except Boxster/Cayman) are
produced in Germany
OPPORTUNITIES
O3. Expansion to China
O4. Efficient international
expansion – greater economies
of scale, increases market
penetration
O5. Global strategy – same
models for the whole world leads
to bigger international market
O6. Wealth of resources upon
joining the VW group
SO STRATEGY 2
Increase efforts into emerging markets especially China and expand
product line to match untapped customer bases’ preference
28. TOWS Analysis
28
STRENGTHS
S3. Consistently innovative with class-
leading technologies
S4. Strategic alliances with other
automakers
S10. Skilled workforce
THREATS
T2. Alienation of customer base
ST STRATEGY 1
Continuous improvement of quality through technological advancement
to maintain and improve the brand’s prestige
29. TOWS Analysis
29
STRENGTHS
S2. Stuttgart plant – the best car factory in
the world
S3. Consistently innovative with class-
leading technologies
S4.Strategic alliances with other automakers
S6. Strong brand image
S7. Customer loyalty – those who value
innovation and independence
S8. Lean production practices
S10. Skilled workforce
THREATS
T3. Losing competitive advantage
T4. CAFÉ regulations to be
enforced in 2020 will cause
Porsche to lose its US market
share
ST STRATEGY 2
Innovate and focus on fuel efficiency through hybrid and electric
vehicles
30. TOWS Analysis
30
WEAKNESSES
W1. Concentrates more on
exportation vs international
expansion, acquisition and licensing
W2. Small compared to competitors
W3. Weak financially – victim of 2008
financial crisis
OPPORTUNITIES
O1. Strong economic support in homeland Germany
O2. Supportive manufacturing infrastructure in
Germany
O3. Expansion to China
O4. Efficient international expansion – greater
economies of scale, increases market penetration
O5. Global strategy – same models for the whole
world leads to bigger international market
O6. Wealth of resources upon joining the VW group
WO STRATEGY 1
Develop sister companies that focus on affordable sports car for middle class
customers
31. TOWS Analysis
31
WEAKNESSES
W5. Conflict between the executives
and management of Porsche and VW
OPPORTUNITIES
O6. Wealth of resources upon joining the VW group
WO STRATEGY 2
Create a comprehensive group agreement with Volkswagen
32. TOWS Analysis
32
WEAKNESSES
W1. Concentrates more on exportation
vs international expansion, acquisition
and licensing
W2. Small compared to competitors
W3. Weak financially – victim of 2008
financial crisis
W4. Dilution of brand
THREATS
T1. Alienation of customer base
T2. Losing competitive advantage
T3. CAFÉ regulations to be enforced in
2020 will cause Porsche to lose its US
market share
WT STRATEGY
Maintain focus on niche market segment and producing current models
34. 5 Forces Model
34
1) THREAT OF NEW ENTRANTS (LOW)
The threat of new entrants is very low in the automobile
industry. The industry is very mature and it has successfully
reached economies of scale.
Barriers to Entry (High)
Capital Requirement
Brand equity
Knowledge (Technology)
Product differentiation.
Large economies of scale
35. 5 Forces Model
35
2) SUPPLIER BARGAINING POWER (LOW)
The automotive industry is composed of powerful buyers
who are generally able to dictate terms to their suppliers.
Although supplier products are vital to production, their
transactional power over Porsche is usually low.
Competition between suppliers is high as a contract with
Porsche represents a significant opportunity.
Porsche make their own engine parts and partnership by
large suppliers (such as VW), which provide core
components, could reduce Porsche potential to exercise
bargaining power.
36. 5 Forces Model
36
3) BARGAINING POWER OF BUYERS
(MODERATELY HIGH)
The buyers also are a significant portion of the industries
revenue. If they can not keep their buyers happy then
they risk losing them to their competitors.
The reasons why the power is not completely high is that
the buyers are not large and few in number. Finally
customers are willing to pay premium for the brand.
37. 5 Forces Model
37
4) THE THREAT OF SUBSTITUTES (MEDIUM)
Direct substitute for Porsche in luxury sport car industry
For examples:
1) BMW X6 M is slightly faster than the Cayenne Turbo
2) Mercedes-Benz ML63 is less expensive than the
Cayenne but slower
3) Audi Q7 is the slowest of the Pack but has more interior
space and torque
However each model has its own distinct advantage and
disadvantages when compared.
38. 5 Forces Model
38
4) THE THREAT OF SUBSTITUTES (MEDIUM)
In these areas, the other substitutes available (e.g.,
walking, mass transit, bicycles.) can be less costly than
automobiles and thus alternative modes of transportation
are often preferred.
However, substitute do not offer the same quality as
Porsche.
Porsche has been able to produce equal performance and
prestige yet at more affordable prices
39. 5 Forces Model
39
5) INTENSITY OF RIVALRY AMONG COMPETITORS
(HIGH)
The level of rivalry in the industry is extremely high,
luxury Sports car industry produces a naturally
competitive environment.
The industry brings together global giants (Ferrari,
Lamborghini, Mercedes Benz SL-Class, and Porsche ).
41. VW’s Strategy 2018
41
To become : “The most successful and fascinating
automaker by 2018”
Porsche will help VW achieve its goals by sharing its
technology with other VW brands, increasing production
and diversifying the Porsche product line
VW has seen the success of Porsche’s recent
diversification and is looking for an even broader
offering.
42. VW’s Strategy 2018
Volkswagen intends to deploy intelligent innovations and
technologies to become a world leader in customer
satisfaction and quality.
The goal is to increase unit sales to more than 10 million
vehicles a year; in particular, VW intends to capture an above-
average share of growth in the major growth markets.
Volkswagen’s aim is a sustainable return on sales before
tax of at least 8% so as to ensure that the Group’s solid
financial position and ability to act are guaranteed even in
difficult market periods.
Volkswagen aims to become the top employer across all
brands, in all companies and regions; this is necessary in
order to build a first-class team.
42
45. Porsche’s Strategy
2018
45
The focus of our company has always been on people – whether it’s our
customers or employees.
At the same time, the core element of our corporate objectives is value-
creating growth. This provides us with the means to invest in innovative
technologies, new products and, above all, in our workforce. Our aim is to be
market leader. We want to grow profitably the Porsche way – with
enthusiastic customers and as an excellent, social and family-friendly
employer.
We will also improve our processes and develop new ones, while
ensuring a good rate of return. We have everything we need to achieve these
goals: emerging markets, fascinating vehicles and highly motivated
staff.
Talking of our workforce, this is another area where we are looking to
significantly grow by 2018. This also includes expanding the infrastructure
accordingly.
47. 1. Maintain and improve product quality of current models and develop
new models through continued innovation and technological
advancement
Utilization of wealth of resources
Technology transfer between brands under VW Group
Audi’s tagline ‘Vorsprung durch Technik‘‘ which means Advancement through
Technology ~ applicable to Porsche now
Example: First ever fully automatic GT3, critisms from purists but selling fast!
2. Increase efforts into emerging markets especially China and expand
product line to match untapped customer bases’ preference
Research on prospective customer’s preference & tastes through surveys, in-
depth interview.
Especially to China and Asia Pacific (increase of percentage of sales and
units sold)
47
Recommendations
48. 3. Continuous improvement of quality through technological advancement to
maintain and improve the brand’s prestige
Matured loyal customers will further appreciate that the brand name remains
prestigious
4. Innovate Focus on fuel efficiency through hybrid and electric vehicles
R & D: Create a team specifically to study and develop hybrid & electric
vehicles
Average mpg rating of 39 for cars as the target before 2020
5. Develop sister companies that focus on affordable sports car for middle
class customers
Volkswagen, Audi: for middle to high income group
Seat, Skoda: for low to middle income group
48
Recommendations
49. 6. Create a comprehensive group agreement with Volkswagen
Under this agreement;
Volkswagen's solid financial base and Porsche's independence will be
preserved
High growth, earnings and synergy potential accompanied by job security.
7. Maintain focus on niche market segment and producing current models
Minimizing all of Porsche’s weaknesses and avoiding any possible threats
49
Recommendations
50. R. Duane Ireland et..al (2013). The Management of Strategy
Concepts and Cases.10th Edition
http://www.mbaskool.com/brandguide/automobiles/1822-
porsche-automobile-holding-se.html
https://itunes.apple.com/us/app/911-porsche-world-
magazine/id537660792?mt=8
http://www.strategicmanagementinsight.com/tools/porters-
five-forces.html
http://www.porsche.com/usa/aboutporsche/overview/strateg
y2018/
http://www.volkswagenag.com/content/vwcorp/content/en/in
vestor_relations/Warum_Volkswagen/Strategy.html
References