A detailed analysis of a firm/organization and its industry segment on Porsche AG.
Porsche has enhanced engineering capabilities which has enabled it to introduce dynamic products that cater to diverse customer segments. Another key strength is the fact that Porsche has a loyal customer base. Porsche’s key competitive advantages continue to be with its research and development. The research conducted by the organization has often been used by other organizations. Its engineering capabilities have helped it to target niche markets in an efficient and effective manner. Porsche has also been able to maintain high levels of quality. The future for Porsche is bright but it needs to diversify its product line and penetrate new markets. This is because of the competitive nature of the global automobile industry. It needs to have clear and precise goals which can help it to attain a strategic edge over its competitors. Porsche’s future strategy is to penetrate the newly emerging economies like Brazil, India, China, and Russia. These markets have the highest levels of demand with respect to vehicles. Non-sports cars will be the main products that will be delivered by the organization in these markets. High performance cars with fuel efficiency are being developed as a means of ensuring efficiency and effectiveness. Porsche will continue to focus on its key competitive advantages as a means of ensuring that its key targets can be achieved within a short period of time. The development of a comprehensive strategy is critical for success in the long term.
The global automobile industry has rapidly changed with new strategic priorities and business challenges. Automobile manufacturers have to respond to the challenge in an efficient and effective manner. They have to apply sound strategies that can be used for achieving success within a short period of time. Porsche SE is a famous manufacturer of luxury cars and sports cars in the world. The organization is based in Germany. It has a presence in major automobile markets of the world like the United States, Europe, and Asia. The success of the organization has been its ability to deliver quality and efficient products for the luxury customer. The organization has made significant investments in technology and innovation in order to achieve efficiency and effectiveness. Porsche’s key competitive advantage is with its small size and niche markets. However, external and internal environmental variables have transformed the business approach of the organization. This is because of the fact that globalization has deregulated foreign markets and enabled customers to have greater choices with respect to selecting automobiles. Rising fuel prices, environmental protection concerns, government regulation, and economic recession are major threats that need to be tackled by Porsche. This report will seek to develop a comprehensive analysis of the external and internal environments in which Porsche operates. It identifies the key strategic issues that plague the organization. Finally, the report will make a number of recommendations which can be used for achieving strategic edge and competitive advantage for the organization.
One of the key strengths of Porsche is that it is an outstanding brand because of its aggressive marketing strategies. Its products are known for being robust, elegant, and powerful. Porsche has enhanced engineering capabilities which has enabled it to introduce dynamic products that cater to diverse customer segments. Another key strength is the fact that Porsche has a loyal customer base (Bennett, 2003: p. 34).
Its product line is for premium customers who want high end luxury vehicles that are in accordance with their lifestyle. Porsche is agile when compared with its competitors as it has known to form partnerships with key industry players in order to improve its operational capabilities.
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- University of South Australia