SWOT analysis of Porsche car company.

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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. In this case Porsche will not be able to sell its car in the US ever again unless the law is enforced in 2020. The US market is accounted for 26 percent of all sale revenues of Porsche. Being unable to sell its products to the US can cause Porsche to lose a lot of revenues. However, another large sale volume is now turning to china. Although china is not the number one country for Porsche in term of sale volume now, its growing number in sales cannot be ignored.

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Nowadays, Porsche is using traditional way of expanding its global market, exporting, because of many uncertainties and its strong supportive of manufacturing infrastructure in German. Porsche started to leverage its sport functionality and brand equity itself to be beyond supercar boundary by introducing SUV, the Cayenne and sedan, the Panamera. This time, it clearly showed that Porsche’s brand equity can be leveraged since the Cayenne and Panamera can still be competitive in multimarket competition and looked more luxurious than its competitors like BMW and Mercedes Benz.

Problems of Porsche

  1. Brand dilution challenging to overcome as it broke ...

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