Porsche Analyse Stratégique

I, Strengths

1, High brand presence over the world

2, Notoriety across the world for its prestige and quality

Since the company’s very first day, Porsche is conceived to be a prestige car brand, which produces the “dream cars” of exclusivity. Porsche car is more than a utility vehicle, but is a car to be enjoyed, to be desired. In a May 2006 survey, Porsche was awarded the title of the most prestigious automobile brand by Luxury Institute of New York, and this is just one of the proofs for Porsche undeniable notoriety across the world.

Moreover, Porsche is one of the pioneers for car quality, performance, and design. For three consecutive years (2006-2008), Porsche was the top ranking brand in J.D. Power and Associates “Initial Quality Study” (IQS). The study ranked brands by the fewest problems per 100 vehicles. Cayenne car can accelerate to 60 miles per hour in just over 5 seconds, hit 165 miles per hour. Panamera can speed up to 188 miles per hour and accelerate to 60 miles per hour in four seconds flat. Porsche spend about 12% of revenue on R&D compared to an industry average of 4% to 6%. Approximately 19% of Porsche employees work in its R&D facility compared to 6.6% at Volkswagen.

3, Preference by ultra-rich elite customers

4, Few car models but wide range of variants and personalization possibility

5, Popularity for both racing and gaming industries

6, High profit margin per unit

The company has been highly successful in recent times, and indeed claims to have the highest profit per unit sold of any car company in the world

II, Weaknesses

1, Only focus on ultra-high-income customers

2, Small in sale size

3, High maintenance and running cost

III, Opportunities

1, New customers from emerging countries

(Dec 12) It sold 128,978 cars worldwide in the 11 months to November - already beating the 118,868 sports cars sold in the whole of last year.

Porsche marketing and sales chief Bernhard Maier said that last month alone was up 39% on November 2011.

Demand came from China and the US, where there was 70% more demand for Porsches last month than in 2011.

IV, Threats

1, Decreasing purchasing power because of the economic situation

(Dec 12) The demand from other countries has picked up for slack demand in recession-hit Europe.

The result has been a 7.1% fall in car sales in Europe so far this year, with some southern European markets seeing sales slump by about a fifth.

2, Intense competition

Porsche has to face a very intense competition. The list of competitors is long with the main names: BMW, Mercedes, Lexus, Volvo, and Jaguar.

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