Referring to one interesting article “Exploring new markets Vs. Maintaining brand’s reputation” in a marketing blog from our classmate Jerry
As we all know ,the brand of porsche stands for powerful, sexy,dynamic car. and it is also label for wealth and power. by comparing to the TOYOTA ,those remarkable feature is not enough to make porsche become most profitable auto company in the world.
Strengths (Interne)
Strong Brand | Image High quality products Focalization on a profitable niche market Very high financial margin Effective risk management Operational Flexibility | Optimized value chain Personalization of Wiedeking and the brand
Weaknesses (Interne)
Focus on luxury segment leads to restricted growth in the luxury segment
Relatively small innovation capacity –> dependence on external innovation suppliers
Dependence on Wiedeking as a manager
Opportunities (Externe)
Entering new segments through involvement in TOYOTA (diversification)
Abolishment of law would lead to stronger influence
Threats (Externe)
Strong competitive rivalry in automobile industry
High ecological standards Dependence on oil
The difference of segments they focused and position they set determine their potential target size and profitability.Toyota is sales orientation company, which concentrate building a long term relationship and occupy a large market share in order to retain sustainable profitability. There is no doubt that Porsche making a great jobs on creating a awesome sporty car that everybody love it , but people seldom can be afford it. that is the reason why porsche release the suv during the difficult recession economic period. porsche make a brilliant decision on growth strategy that release the suv with low price as benz and bmw did. they also give customers a large range or scale of options in terms of equipment and models of car. people have to spend more money on it if they want to keep cross-country performance and not to scarify sporty performance, and have the same driving experiment like porsche sport car.
with much lower price to attract some
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