...Kevin Huong Prof. Erickson MKTG 10300 May 4, 2012 Porsche Analysis Paper Porsche is success in the automobile sector and its involvement in VW. Porsche is by far the largest sports car maker in the world. In recent years it enjoyed the highest profit margin in the industry, thus enabled it to acquire the giant Volkswagen group. However, the global financial collapse ruined its takeover plan, eventually resulted in counter takeover by Volkswagen. Porsche Automobil Holding SE was founded on June 26, 2007 at the extraordinary general meeting of Porsche AG, with a unanimous vote of the shareholders. At the time, the objective was to spin off the operative automobil business as a wholly owned subsidiary and to create the holding company as a business unit responsible for managing equity investments. Share holders of the Dr. Ing. h.c. F. Porsche AG voted unanimously in favor of the operating activities of Porsche AG becoming the responsibility of a hundred percent subsidiary in accordance with the provisions of the Transformation Act, of adopting a controlling and profit transfer agreement between the holding company and the operating subsidiary, and also of transforming the holding company into a European Company, a so-called Societas Europaea (SE). The name “Porsche Automobil Holding” was also unanimously approved. The company’s headquarters is located in Stuttgart. Porsche is a well-known European automobil industry that has been for over 60 years, and is a holding company...
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...Introduction I will be writing a report on a organisation selected by myself to illustrate my understanding of how the completive environment and internal capabilities of the chosen company have combined to influence their choice of strategies. The organisation that I have chosen to look at is Aston Martin, a globally known luxury car manufacturer. I will be looking to delve into the company’s research to find information about their market share, who their target market’s are, their company secrets and also Aston Martin’s trend performances. I will finish the report with a SWOT analysis for my chosen company which in turn will help me identify any management issues that Aston Martin’s may want to address to help keep them ahead in the motoring industry. History Aston Martin was founded in the year 1914 by two people named Robert Bamford and Lionel Martin. Lionel’s surname ‘Martin’ was used as part of the now famously known car brand, and the cars first part of the name ‘Aston’ came from a hill climb in which they both competed. Aston Martin has had success with many cars that the have built such as the DB1 in 1948, the DB2 in the year 1951, but perhaps the most famous car Aston Martin has made is the DB5, which shot the luxury sports car manufacturers to fame when it featured in the James Bond film Goldfinger in 1964. The car organisation isn’t without its faults however, nearly going bust in the year 1925, but was revived the following year. Augustus Cesari...
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...A.1 Environment Porsche was founded in 1931 by Ferdinand Porsche, along with his son and son-in-law, Anton Piëch, father of VW Chairman Ferdinand Piëch. Known in its early days as the Porsche Engineering Office, Porsche did not start off as an automaker, but rather a firm that sold design and engineering services to other carmakers. In 1934, Adolf Hitler commissioned Porsche to make a “people’s car” or “volkswagen.” The forerunner to the VW Beetle, the VW Type 60 hit the roads in the mid-1930s, and in 1938 the first plant dedicated to the manufacturing of the VW was opened. It wasn’t until 1948, three years after the end of World War II, that Porsche produced its first branded sports car. Within two years, the Porsche 356 series rolled off the production lines. By 2007, Porsche was the world’s most profitable automaker on a per unit basis, 5 a feat that was especially impressive considering it produced just over 100,000 automobiles annually. A.2 Industry 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. In 2005, Porsche in partnership with VW produced a luxury sedan called Panamera which would compete against models produced by Mercedes, Aston Martin and Audi. The typical consumer of Porsche is those men that are young, wealthy and adventurous...
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...Individual Case Analysis - Porsche 1) What are the most important general environment factors to be considered for the industry and the company and what is their effect (positive-negative-neutral)? What is your evidence for the importance of these factors? • Technology – Neutral – Though Porsche is a high end car with a high desirability it is not a market leader in technology. It is not behind the market either. It does have very advanced engine and tractions systems, and Porsche’s patented Doppelkupplung, or double clutch. None of which is necessarily ground breaking. They did however purchase Volkswagen Groups and were able to acquire new technology which puts them at more of an advantage. • Demographic – Positive - Porsche is a luxury brand and is dedicated to selling high end products to those with the means of purchasing it. Porsche has acquired the majority of Volkswagen Group to gain market share in the lower-end luxury brands as well and to synergy in its own brand. Even with the poor economy, Porsche is excelling in sales to the upper class. 2) What are the most important of the five industry forces affecting the industry and the company and what is their effect (high-moderate-low)? What is your evidence for the importance of these forces? Is the industry attractive for new entrants and incumbents? • Intensity of Rivalry Amongst Competitors – High – There are numerous competitors of similar market size which increases rivalry. This is a slow growth industry...
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...List of Figures | 5 | I Introduction | | II Methodology: The Strategy Formulation Framework | | III Company Background | | The Internal Environment 1. Resources2. Capabilities3. Core Competencies | | The External Environment1. Demographic2. Economic3. Political/Legal4. Sociocultural5. Technological6. Global7. Physical8. Industry | | Porter Five Forces Model1.Threat of New Entrants/Barriers to Entry2.Bargaining Power of Suppliers3.Bargaining Power of Buyers4.Product Substitutes5.Intensity of Rivalry Among Competitors | | IV Analysis 1: The Input Stage 1. Internal Factor Evaluation (IFE) Matrix 2. External Factor Evaluation (EFE) Matrix 3. Competitor Profile Matrix (CPM) | | V Analysis II: The Matching Stage1. SWOT matrix 2. SPACE matrix 3. BCG matrix 4. I/E matrix 5. Grand Strategy Matrix | | VI Analysis III: The Decision Stage 1. QSPM Matrix | | VII Strategy Recommendation | | References | | Appendices | | Executive summary This report was commissioned to examine the internal and external environment as well as the 5 Porter Five Forces Model that affect the Volkswagen Group and using the several type matrix to formulate the strategy as the ways to increasing the overall performance of Volkswagen Group. This report draws the attention to the several of...
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...Volkswagen Group Business Strategy & International Management Content 1 2 Introduction Volkswagen Group 2.1 2.2 Figures, Data, Facts History 2 2 2 4 5 5 6 8 8 10 12 12 15 16 17 18 3 Strategy Planning 3.1 3.2 Overall Strategy Strategy 2018 4 Business Risk Analysis 4.1 4.2 Porter’s Five Forces Resources and Capabilities 5 Financial Risk Analysis 5.1 5.2 Key Financial Figures Risks 6 7 8 SWOT-Analysis Conclusion References 1 Business Strategy & International Management 1. Introduction Whenever you visit another country and you say that you come from Germany on of the first things you ever hear is “Germany, oh I like German cars” and then they say e.g. BMW, Mercedes or Audi. That shows that German cars are not really German cars, instead they are world cars, produced and sold in countries all over the world. In my case I choose the Volkswagen Group because it is the biggest German car manufacturer and the second largest in the world. Moreover the strategy of Volkswagen is to be the largest car manufacturer until 2018. To reach this goal it is very important to understand the globalized world to compete with their competitors in a more and more competitive environment. Furthermore it is very important to show attention to emerging markets to increase the company’s sales especially when some markets like America and Europe are satisfied. In this report I want to analyze the Volkswagen...
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...some car brands. Volkswagen,the best-selling car brand in Europe.Audi, the world’s third largest luxury car brand after Mercedes-Benz and BMW. Scania, the sweden commercial vehicle producer, Skoda, the famous automobil manufacturer based in the Czech Republic, and SEAT, the biggest Spain car maker. Then the ultra-high performance car brand Lamborghini ,Porsche and Bugatti. And last ,British ultra-luxury car brand Bentley. All these brands have one thing in common, they are all owned by the Volkswagen group of Germany. * The Volkswagen Group strengthened its position as the top motorcar manufacturer in Europe in 2009 by increasing its market share by half a percent to 21.1%. * Volkswagen group also is the third largest car maker in world just behind Toyota and General Motors.But unlike Toyota is struggling from its brand crisis and GM struggling from bankruptcy,Vw’s performance is relatively strong during this economic crisis. * Headquartered in Wolfsburg, Germany * Total employee 370,000 * In 2009, Volkswagen Group sold 6.31 million vehicles, claiming over 11% of the world passenger car market SWOT –strenths Successful mutilple brand strategy The Group is made up of nine brands from seven European countries: Volkswagen, Audi, SEAT, Škoda, Volkswagen Commercial Vehicles, Bentley, Bugatti, Lamborghini and Scania. Each brand has its own distinct brand identity and operates as an independent entity on the market. The company's strategy was to target...
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...Forecasting Porsche is a leader when it comes to sports cars. When thinking sports cars you cannot help but think of Porsche. Porsche has been around since 1931and has had its ups and downs in the auto industry but is still going strong with over 80 years under its belt. Porsche has a rich past in design and engineering and quality assurance. Porsche was created by Dr. Ferdinand Porsche “as a vehicle design firm in 1931 and did work for car companies” (Sass, 2009). Porsche has been different from the beginning by being “known in its early days as the Porsche Engineering Office, Porsche did not start off as an automaker, but rather a firm that sold designs and engineering services to other car makers” (Henderson & Reavis, 2009). Porsche did not design its first car until 1934. The first car Porsche designed was at the request of Adolf Hitler who “commissioned Porsche to make a “peoples car” or “Volkswagen” (Henderson & Reavis, 2009). It was not until after the war that Porsche designed and produced its first sports car. The first “Porsche 356 series rolled off production lines” (Henderson & Reavis, 2009) in 1948. Dr. Ferdinand Porsche and his son Ferry Jr. would run the company until Ferry Jr. took over after his father’s death in 1951. The very symbol that is found on the hood of Porsche today is the exact symbol produced in 1953by “Dr. Ferry Porsche designed an emblem including the coat of arms of Stuttgart and the coat of arms of Württemberg, along with Porsche name” (Porsche...
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...PORSCHE CASE “Porsche-a brand with heritage” A brand is a product but adds other dimensions that differentiate it in some way from other products designed to satisfy the same need. For the last 50 years Porsche is on the list for prestigious, premium, luxury brands with high percentage of awareness and loyal customer and behind strong brand stands successful branding strategy, strategy that Porsche have implemented through the years and strategy that brings amazing results among this large period since the beginning of Porsche as product and then premium brand. The management team of Porsche succeed to create brand value and to convince the customers that there are meaningful differences among brands in the product. Porsche possess a unique brand personality which sets him apart of the competition. It has everything that one successful brand should have; powerful brand name, recognizable symbol and logo, premium price, high awareness and loyalty that provides predictability and security of demand for the firm and creates barriers to entry that make it difficult for other firms to enter the market. Loyalty also can translate into a willingness to pay a higher price. Beside all of the elements that we can see, there are many components ,under the surface related to the brand, that make him strong and powerful, like ; high quality, efficient production and effective selling, strong R&D and so on. The brand image and core values of Porsche can be described with these three...
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...UK Automobile Industry 1. Wikipedia : Primary categories : Sports and luxury end cars – Aston Martin, Bentley, Daimler, Jaguar, Rolls-Royce etc Volume Car Makers – Nissan, Honda, Toyota etc Commercial Manufacturers – Ford, Leyland, London Taxis International etc Back in 1950 , UK was the second largest car manufacturer and exporter after USA. Subsequently over some decades slowed down and was then ranked on the 12th spot with immense competition from nations like France, Germany and Japan\. Late 80’s many of the British marques were bought over by foreign companies 2. http://www.thisismoney.co.uk/money/cars/article-2524573/Can-motor-industry-continue-fifth-gear-race-ahead-2014.html The latest UK car manufacturing figures showed that 1,286,287 motors were produced in the first 11 months of the year, a rise of 5.4 per cent compared to last year with sales also up by an impressive 9.9 per cent. Of the five major European car markets – Britain, France, Germany, Italy and Spain – only Britain has seen growth in the new car market this year. The rate of growth depends principally on when the car manufacturers pull back on the cheap credit that is currently pump-priming the market. If this cheap credit remains available throughout next year then there is an increasing risk of oversupply of new cars which could raise anxiety regarding a potential shock fall in used car residual values.’ Political Economic Payment Protection insurance payouts Cheap financing ...
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...(Porsche case) Introduction: For its first few decades, Porsche AG lived by the philosophy of Ferry Porsche, Ferdinand s son. Ferry created the Porsche 356 because no one else made a car like he wanted. They did no market research, had no sales forecasts, no return-on-investment calculations. None of that ,he very simply built his dream car and figured that there would be other people who share that dream. So, really, Porsche AG from the beginning was very much like its customers: an achiever that set out to make the very best. But as the years rolled on. These are challenging questions to answer; even Porsche owners themselves don't know exactly what motivates their buying. But given Porsche s low volume and the increasingly fragmented auto market, it is imperative that management understands its customers and what gets their motors running. The problem: The absence of real strategy, market research,sales forecasting and the absence of vision and taking the risk of changing segmentation strategy, . They considered these entry-level models to be cheap and underperforming. Most loyalists never really accepted these models as real Porsches. In fact, they were not at all happy that they had to share their brand with a customer who didn t fit the Porsche owner profile. They were turned off by what they saw as a corporate strategy that had focused on mass over class marketing. This tarnished image was compounded by the fact that Nissan, Toyota, BMW, and other car manufacturers...
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...PROJECT CASE STUDY OF THE VOLKSWAGEN NEW BEETLE [pic] MKTG Principles of Marketing TABLE OF CONTENTS Abstract Introduction Product concept Development of the Volkswagen New Beetle New Beetle adoption Marketing throughout the product life cycle Beetle brand Findings Conclusions Reference list Abstract *** “The Beetle is different, it makes you feel different. It is like a magnet”, - Volkswagen Chairman, Ferdinand Piech (Keith Naughton and Bill Vlasic, 1998) *** The present paper is the case study of the Volkswagen New Beetle from the marketing perspective. The thesis will analyze the product concept, and examine the New Beetle in terms of the concept in question. The purpose of the paper is to identify the issues in the application of theory with regard to the New Beetle as a product, describe the function and operation of this element of the marketing mix in Volkswagen, as well as to review the status of the identified issues in the reviewed company. The paper will consider the introduction of the New Beetle to the market and examine the respective phases of the product development. The thesis will also examine the adoption of the New Beetle as a product, overview the product lifecycle and the issues with regard to the Beetle brand. Overall, New Beetle is unique from other cars and can be the good example of the successful product development and adoption. The Beetle Brand...
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...observed within the two dynamic countries. Germany is one of the world leaders in the automotive industry, and is the biggest exporter within the EU for automotive vehicles by far. With a vast interest in the high quality products and excellent services that the Germany car industry has to offer they are benefiting from impressive figures as shown (Mccarthy, 2013) “Germany is the chief exporter by some distance. Europe’s economic powerhouse exported an impressive $245.4 billion worth of automobiles in 2011. During the same year, Germany reported $104.1 billion of vehicle imports.” This is bringing great amounts of wealth into the nation. By having seven of the world’s most popular brands (Audi, BMW, Ford Germany, Mercedes-Benz, Opel, Porsche, and Volkswagen) Germany are able to offer a vast range of luxury vehicles which are in great demand; this is allowing Germany to have massive growth within the car industry which shows no sign of decreasing. Within the 2009 financial crisis many sectors failed to make a profit or match sales from the previous years. But with Germany offering scrapping programs that allowed customers to scrap old cars with up to $3,000 euros towards getting a...
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...Bastian Steppin LDR:460 Professor: Dr. Kecia Edwards April 2014 IMPORTANCE OF EFFECTIVE TEAMWORK IN THE AUTOMOBILE INDUSTRY This paper focuses on effective teamwork and how important it is for the automobile industry. This Industry is very fast moving and one false decision can cost millions of dollars for the company and can cost thousands of peoples jobs in case that the company goes bankrupt. The carmakers are on search for every cent that they can safe during the research, development, and also during the production process of a new vehicle. Of course, there are different ways to cut the cost in this industry. One way would be to use cheap and low-quality metals, another way would be to use cheap and less skilled employees. However the problem with these two approaches would be that they would harm the quality of the final product. The customer usually wants a high quality car for a low price and also low using cost. Therefore, the idea of using cheap and low quality metals, and also assembling the car by using unskilled and cheap labor, would finally result in the loss of customers and therefore the loss of business. The right way to do it is to find the right balance between price and quality. This right balance is very important for the companies and effective teamwork helps them to accomplish this goal. If a company does not use its resources in the most effective way and also does not use effective teamwork, then it will eventually suffer from its decisions. For...
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...Porsche : Guarding the Old While Bringing in the New Introduction Porsche : The company Porsche founded in 1931 Porsche appealed to financially succesful people. People buy Porsche because the car mirrors their self-image Unique company Managers of Porsche wants to know: -Who their customers are - What they think - How they feel The buyers decision process Low volume and increasingly fragment auto market Sold a few models, creating an image of excusivity Making decisions : Cayenne or Panamera? Porsche 914 1970 - Porsche began to worry Cheaper model for other classes Made for a differend type of costumers VS How the Loyalists were thinking about the 914 They never accepted the 914 as a real 'Porsche'. The 914 users don't fit in the real owner profile. Disappointment in the new strategy of Porsche : Mass over Class Questions for Discussion Positive and negative attitudes toward a brand like Porsche. Positive Customer buying a Porsche wants to show their status and separate from the lower class. Negative Customers are not satisfied with the produce image. Answer 1 : It is the image of exclusivity that is most important. They want their car to represent how successful they are. Answer 2 : A traditional Porsche customer is more concerned about the way the car sounds, vibrates and feels. A Cayenne or Panamera customer is looking for both family car and speed. Answer 3 : * Cultural Factors (Social Class); having a Porsche is always means to upper social class...
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