Saab Strategy Report
Company
Strategy Context Report
Module: Bus 302
Industry Context Report
Executive Summary
This report complies the analysis of the new strategy for Saab Automobile following its acquisition by Spyker Cars. The report attempts to assess this strategy and its potential success with an evaluation and analysis of the industry, strategy, macro environment, competitive advantage and sustainability of the competitive advantage. Various frameworks were applied in this report, including Porter’s 5 Forces, Strategic group analysis and VRIN analysis. Findings show, that Saab’s new strategy is based on some of the company’s strongest resources, the Brand, technology and expertise in design. This is particularly important as the industry’s leading force is the Industry Rivalry and the company needs to stand out amongst the plethora of models and manufacturers. The company’s competitive advantage rests upon its potential to differentiate from rivals based on their Swedish design, technology and aviation roots. Lastly, the competitive advantage is one of differentiation and is found to be currently unsustainable. The results of our enquiry and discussion concluded that there is significant potential for growth and profitability within Saab Automobile. Despite making losses the strategic choice is valid and can help create a profitable company in the years to come. We therefore recommend that Saab improve brand awareness and positioning with marketing efforts, promoting its new image and technological advances. Along the same lines, Saab should continue to maintain innovation as demonstrated in 2006 with its BioPower car. Lastly we recommend Saab cultivate an employer image to attract top notch human capital in order to achieve a successful strategy and become a viable company.
i
Industry Context Report
Table of Contents
Introduction
Industry Context Macro Environmental Analysis
PEEST
1 2 3 3 5 5 7 7 9 9 9 10 11 12 13 15 15 17 20 48 48
Strategy Context Report
Module: Bus 302
Industry Context Report
Executive Summary
This report complies the analysis of the new strategy for Saab Automobile following its acquisition by Spyker Cars. The report attempts to assess this strategy and its potential success with an evaluation and analysis of the industry, strategy, macro environment, competitive advantage and sustainability of the competitive advantage. Various frameworks were applied in this report, including Porter’s 5 Forces, Strategic group analysis and VRIN analysis. Findings show, that Saab’s new strategy is based on some of the company’s strongest resources, the Brand, technology and expertise in design. This is particularly important as the industry’s leading force is the Industry Rivalry and the company needs to stand out amongst the plethora of models and manufacturers. The company’s competitive advantage rests upon its potential to differentiate from rivals based on their Swedish design, technology and aviation roots. Lastly, the competitive advantage is one of differentiation and is found to be currently unsustainable. The results of our enquiry and discussion concluded that there is significant potential for growth and profitability within Saab Automobile. Despite making losses the strategic choice is valid and can help create a profitable company in the years to come. We therefore recommend that Saab improve brand awareness and positioning with marketing efforts, promoting its new image and technological advances. Along the same lines, Saab should continue to maintain innovation as demonstrated in 2006 with its BioPower car. Lastly we recommend Saab cultivate an employer image to attract top notch human capital in order to achieve a successful strategy and become a viable company.
i
Industry Context Report
Table of Contents
Introduction
Industry Context Macro Environmental Analysis
PEEST
1 2 3 3 5 5 7 7 9 9 9 10 11 12 13 15 15 17 20 48 48