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SWOT analysis of Porsche car company.

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Introduction

´╗┐Porsche?s case summery Porsche has been remaining a profitable company manufacturing luxury sport cars for more than 70 years. The reasons behind that success are innovation, design, and brand reputation. The brand survived perfectly in the supercar market with full of external and internal pressures. There are changes in political regulations, cash flow management problems, and economic challenges which deduct weak survivors who cannot overcome those obstacles like Lamboghini who declared its bankruptcy in 1978 before being sold to many companies later. In the present, Porsche is the brand under Volkswagen group or VW, a large automobile manufacturer who owns Bugetti, Lamboghini, Audi, Bentley, Seat, Scoda, Scania, and Volkswagen. The VW is also a large leading automobile group globally with one-ended service; financial service, dealer service, leasing, banking, insurance and fleet management. Porsche plays an important role in strengthen group synergy by helping other brands improve their innovation, manufacturing and quality. The vital challenge for Porsche now is a change in the US?s regulation on gas emission control in automobiles or CAFE which will set the emission of one car to be less than 39 mpg per car in 2020. ...read more.

Middle

Problems of Porsche 1. Brand dilution challenging to overcome as it broke the boundary of a sport car brand and jump into SUVs and Sedans market and should it ceases its product line expansion and come back to focus only on its core competitiveness, sport car 2. Market reaction to multiple sport cars offers by Audi, Lamboghini and Porsche 5 forces analysis 1. Rivalry in this type of market is moderate because first, each brand tries to differentiate itself from other competitors. For example, In SUV market, Mercedez Benz ML63 focuses on luxurious look and low price than Cayenne whereas Audi Q7 offers great interior design and BMW X6 acquires the faster SUV of all four brands. However, the competition between existing brands are still high, each brand tries to offer best quality and features as possible to offset with their luxurious prices. 2. Threat of substitute products is also low because of the innovation and technology of Porsche is so unique such as PDK system and PTV system that were invented by Porsche helping to increase driving performance. ...read more.

Conclusion

It becomes one of the leaders in supercar market in the world. Its own innovation, technology and design allow it to enjoy high profit rate from ability to response to customers who want a supercar with reasonable price and give them high performance. SWOT Strengths 1. Unique design, innovation and technology 2. Brand reputation to become trusted by customers worldwide which can support its product line extension to SUV and Sedan cars 3. Manufacturer infrastructure that supports its new innovation 4. Moderate diversification since the company has revenue comes from automobile and finance and insurance service which can distribute out its risks. Weaknesses 1. Limited manufacturers because it depends only on one main manufacturer in German 2. External related issue such as gas prices and also the car requires to use only premium gas Opportunities 1. Becoming more environmental friendly car provider by adopting hybrid system to supercar 2. More product line extension 3. More technological orientation such as online network (Application, websites) to increase customer relationship 4. Market expand to Asia due to increasing in purchasing power Treats 1. Law and regulations about pollution and gas emission 2. Economic slows down when people spend less money on luxury products ...read more.

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