What s driving Porsche PPT
WHAT’S DRIVING PORSCHE?
CASE STUDY
CASE FACTS
Founded in 1931 by Ferdinand Porsche
Started by selling design and engineering services to other car makers and was established as an engineering firm.
In 1934, Hitler commissioned Porsche to make a people’s car or a Volkswagen.
In 1938, the first plant dedicated to manufacturing of WV was opened.
In 1948, Porsche produced the first branded sports car and within 2 years produced the Porsche 365 series.
THE TURNAROUND
Between 1986 and 1993, Porsche’s sales had fallen and the company was on the verge of bankruptcy. Focused on building new core competencies in lean manufacturing and synchronized engineering. Decided to extend the product line beyond sports car niche.
In 2003, Porsche introduced the Cayenne in collaboration with WV.
In 2005, Porsche announced to launch a luxury sedan, Panamera in 2010.
By 2007, Porsche became the world’s most profitable car maker.
Porsche’s income topped $9.4 billion on revenue of $ 10 billion.
ISSUES
Potential Brand dilution will happen since its switching from focus approach to broader market to extend the Porsche product line.
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.
SWOT ANALYSIS
STRENGTHS
Strong brand image
Strategic alliances with other automakers WEAKNESSES
Small compared to competitors
Weak financially – victim of 2008 financial crisis
Skilled workforce
Consistently innovative with class-leading technologies
Customer loyalty
Conflict between the executives and management of Porsche and VW
SWOT ANALYSIS
OPP0RTUNITIES
THREATS
Wealth of resources upon joining the VW group Losing competitive advantage
Supportive manufacturing infrastructure in Germany
Efficient international expansion – greater economies of scale, increases market penetration
Intense competition from automobile giants. 5 FORCES MODEL
CASE STUDY
CASE FACTS
Founded in 1931 by Ferdinand Porsche
Started by selling design and engineering services to other car makers and was established as an engineering firm.
In 1934, Hitler commissioned Porsche to make a people’s car or a Volkswagen.
In 1938, the first plant dedicated to manufacturing of WV was opened.
In 1948, Porsche produced the first branded sports car and within 2 years produced the Porsche 365 series.
THE TURNAROUND
Between 1986 and 1993, Porsche’s sales had fallen and the company was on the verge of bankruptcy. Focused on building new core competencies in lean manufacturing and synchronized engineering. Decided to extend the product line beyond sports car niche.
In 2003, Porsche introduced the Cayenne in collaboration with WV.
In 2005, Porsche announced to launch a luxury sedan, Panamera in 2010.
By 2007, Porsche became the world’s most profitable car maker.
Porsche’s income topped $9.4 billion on revenue of $ 10 billion.
ISSUES
Potential Brand dilution will happen since its switching from focus approach to broader market to extend the Porsche product line.
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.
SWOT ANALYSIS
STRENGTHS
Strong brand image
Strategic alliances with other automakers WEAKNESSES
Small compared to competitors
Weak financially – victim of 2008 financial crisis
Skilled workforce
Consistently innovative with class-leading technologies
Customer loyalty
Conflict between the executives and management of Porsche and VW
SWOT ANALYSIS
OPP0RTUNITIES
THREATS
Wealth of resources upon joining the VW group Losing competitive advantage
Supportive manufacturing infrastructure in Germany
Efficient international expansion – greater economies of scale, increases market penetration
Intense competition from automobile giants. 5 FORCES MODEL