Strategic analysis of Porsche

Résumé du document

How profitable an automotive manufacturer is, mainly depends on how he can use his production facilities to full capacity. Examples of manufacturers, who are unable to do so, are Opel or Volkswagen, where overproduction leads to small profit margins. The strategy of Porsche is the opposite. Porsche differs from its competitors in having a high margin and no variation of production capacity or storage. It is also closed to external production suppliers, has low costs of fabrication, high demand, smart communication strategy and so on. In the beginning of 2008, Porsche satisfied 100 000 clients with only 4 models of cars.

Porsche has faced some difficulties in the United States (decrease of 20% of sales with only 14 500 cars sold), but its growth is increasing in Russia, China and Europe. Despite the crisis, Porsche seems to be the strongest car builder in the world. Partnerships help Porsche to maintain its great position.

Extraits

[...] July 2008: The European Commission formally took a decision, approved by the German Porsche Automotive Holdings Corporation to acquire the German Volkswagen Group. Today, Porsche and Volkswagen is a unique company. Its strategy has been ingenious and gentle. Porsche did not only buy Volkswagen but also Audi, Seat, Skoda, Bentley, Bugatti, Lamborghini, Scania and Man. It is a unique scenario in the automobile field and counter to usual purchase. Twenty years ago, it was unimaginable when Porsche had trouble to keep his profitability and his independence. [...]

[...] Porsche has firmly stayed with its design philosophy, providing sports cars for the everyday driver Present situation Porsche in numbers The equity capital of 45.5 million Euros is divided into two halves: ordinaries held in equal parts by the members of the Porsche and Piëch families, and preference shares listed on the stock exchange. In autumn 2005 Porsche became the biggest shareholder of Volkswagen with a stake. On January 26th Porsche asked an increase of the number shares from the recent to at the annual shareholders meeting. The acquisition costs of over 4 billion Euros were financed from Porsche's company assets. [...]

[...] This map represents the brand image and the position of Porsche in the world. Porsche & Volkswagen, not only a German merger 2 Porsche & Volkswagen, a long story Porsche is one of the most profitable companies in the market. Since several years, Porsche has been working with Volkswagen to attain this position. The story began in the Thirties with Ferdinand Porsche, the founder of the Porsche company who had created the car of the “German people”. Today, the best example is Cayenne which is the all-terrain car manufactured by Porsche of the Volkswagen cars are produced in its factory in Bratislava. [...]

[...] The strategy of Porsche has demonstrated the contrary. The small one (Porsche) acquired the bigger one (Volkswagen) in this instance. So far nobody has proven that size alone is protection from failure. Large or small - a question of definition, one word: Porsche Porsche has drawn on traditional models for a long time. Only Money cannot produce inventiveness. It is guaranteed by the pressure of having to prove itself against the competition again and again. Porsche relishes its role as David amongst the Goliaths in this world. [...]

[...] The policy of Porsche is to manufacture special cars with competitors. Specific segments car of Porsche have better profitability than the competitors, because these segments are created by Porsche. All the competitors have difficulty achieving a good position on Porsche's segment. Moreover, this firm has a category of buyers, and there are regular customers who are ready to pay the price of a Porsche car. Everybody keeps in mind that Porsche cars denote luxury, and they have a beautiful standing. [...]