Porshe Case Study

I. Executive Summary

Porsche with its headquarters in Stuttgart is one of the market leaders in the global high end automobile industry. The macro economic environment shows significant global changes that evolve around specific sectors of the industry. The PESTEL analysis demonstrates the key drivers of change, which can be considered as threats and opportunities for the chosen company. Porters Five forces help to analyse the industry rivalry in order to find out the attractiveness of the market for Porsche. The strategy clock helps to assess the variety of the industry and the Position of Porsche with its comparative advantage. The financial crisis had huge impacts on the financial situation, its stakeholders and the automotive industry in general. The SWOT Analysis is the first stage of strategic planning which will help the company to focus on the key issues. The aim of this analysis is to identify the key internal (Strengths, Weaknesses) and external (Threats, Opportunities) factors in our case of Porsche Company.

The strategic analysis deals with all current strategic and structural changes the company was confronted with in the context of the recent developments. These changes and developments evolve around the product line, financial services, the distribution networks, strategic alliances, production facilities, suppliers, value enhancing factors, Human resources and data security. Utilising all these factors and concentrating on sustainable strategies the Porsche group has achieved its goals as one of the leading luxury automobile manufacturers in the world. This report permits to find an adequate solution through the analysis via multiple aspects. The angle is based suitable feasibility and acceptability.

II. Introduction

For the purpose of this report the strategy of the German car manufacture Dr. Ing. H. C. F. Porsche AG (Porsche) will be analysed. Porsche principally operates in Germany followed by other countries in Europe and United States. It produces luxury high performance sports cars and is mainly owned by the Porsche family. The company's headquarters are in Stuttgart, Germany and employs about 375,959 people in total. After a turbulent year at the company, combining the financial crisis with the acquisition of Volkswagen and the entry of the Emirate of Qatar at Porsche, Porsche subgroup (Porsche AG and its subsidiaries) had a dramatic decrease in unit sales achieving 24 % less to 75,238 vehicles. As a consequence the company made 3.6 billion EUR losses (Porsche Annual report 08/09 pg.11). According to analysts the global financial crisis seems to have come to an end. The economy is recovering however consumer behavior is uncertain and the discontinuation of the state environmental bonus will have a negative impact on the market in 2010 (Porsche Annual report 08/09 pg.89).

III. Industry Overview

The global automobiles industry group includes the automobiles and auto components industries, which covers the passenger car market, the light trucks and motorcycles. However this report is focusing only at the car market segment, which covers the majority of the industry, 80.3% of the industry's total value. The global financial crisis had an impact on the automobile manufactures in addition the increase in oil prices discouraged consumers to purchase sports cars, choosing vehicles with minor consume of fuel. As a result the automobile industry shrank by 5.4% in 2009 to reach a value of 1,056.6 billion EUR (Figure 1) (Datamonitor 2010 pg.2).

Furthermore the industry shrank to a volume of 65 million vehicles, which is in total a decrease of 1.4% in 2009 (Figure 2). The compound annual growth rate (CAGR) of the industry was 1.9%, covering the years from to 2005 to 2009.

IV. Industry Analysis

IV.I. PESTEL Analysis

POLITICAL ECONOMIC

• Reduction of usage of private cars via tax increases.

• Fuel price increases.

• Introduction of congestion charges in big cities. • Interest rates, taxation changes, economic growth, inflation, exchange rates.

SOCIAL TECHNOLOGICAL

• Usage of the internet led to the development of diverse changes in the behaviour of people

• the net has enabled people to work from home thus they are no longer vehicle dependent. • Every aspect of