Strategy Analysis of Porsche

Strategy Analysis of Porsche Student’s Name Institutional Affiliation Strategy Analysis of Porsche Porsche’s current health in terms of performance, product range, innovation pipeline, and internal resources Performance Porsche is one of the top leading automobile brands that have honorably made it to the top of the automobile industry. The company has a unique and complex history. In terms of performance, 2015 was the best year in the company’s history, after having recorded a 25 percent increase in revenues and profits to $24 billion and $3.8 billion respectively. Also, unit sales increased by 19 percent, selling approximately 225,000 cars worldwide. The sales came ahead of the company’s goal of selling more than 200,000 cars worldwide by the end of 2018 (Amor, 2014). Despite the uniqueness of its automobiles, Porsche’s sales performances and financial gains have been largely attributed to its crossover SUV’s. Globally, the Porsche Macan and Cayenne account for 68 percent of all the company’s sales, with more cars being booked and other undelivered. Despite its success in the automotive industry, the company faces stiff competition. The top competitors include BMW, which generates close to $108.9 billion more revenues than Porsche, Lexus, which generates $99 billion more, and Tesla, which generates close to 107 percent of Porsche’s revenue. Porsche has a high brand recognition, which is contributed by its well-known logo that symbolizes the company’s powerful design and its prestigious cars, which are considered to be a luxury acquisition. The company’s largest market is in China, with approximately 58,000 cars sold and the second largest market is the United States with almost 52,000 car sales. Despite the company being part of the Volkswagen Group family, the brand has managed to disassociate itself and has remained unaffected by its parent company’s operations and scandals. Product Range In terms of product range, Porsche is focused mainly on producing automobiles, by specializing in high-performance sedans, sports cars, and SUV’s. Its popular model, the 911 has sold over a million cars. In recent times, the company recorded the highest profit per unit sold, with the majority of its cars sold in international markets. In 2017, out of the 246,375 cars produced by the company, 97,202 were Macans, 27,942 were Panamera, 63,913 were Cayennes, 25,114 were Boxter, and the 911 constituted 32,197 cars. Porsche’s product lineup includes; 911- In the segment of premium sporty cars 718 Boxter- In the segment of compact premium sporty cars 718 Cayman- In the premium sporty coupe segment Macan- Compact SUV segment 918 Spyder- Segment of sports car with an open top The company’s outstanding reputation and brand image make customers want to pay for the cars at a higher price. For this reason, the company has focused on both the sports car market and the luxury SUVs. In 2017, the company produced a total of 255, 683 vehicles, which was a 7 percent increase compared to the previous year. Innovation Pipeline Porsche’s innovative strategy comprises introducing a combination of sports and non-sports models. The company has expanded its product lineup with the introduction of SUVs but also launching sports cars whic...