Business Analysis : Porsche Automotive Group

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In any market there are opportunities to be found. The automotive market is no different. For example, there has been a trend growing in the automotive market, which leans toward renewable energies and those vehicles that will leave less of an impact on their surrounding environment. Green technologies are tied into political agendas and public opinion. Porsche Automotive Group has not missed this less than subtle hint. In keeping with this trend, in the pasted decade Porsche has been developing electric cars (Porsche SE Group, 2016). Another opportunity that exists for Porsche Automotive Group is also one of their weaknesses. It is the fact that they specialize in luxury vehicles for an exclusive class of society. The current…show more content…
It has been plain to see over time that as a recession sets in consumers tend to care more about the needs of sustaining life rather than luxury items. This trend has been clearly displayed in the housing market in the United States in the past decade following inflated values and over saturation of the market. Regardless of the fact that Porsche Automotive Group has found it possible to maintain a growing profit within a specialized market, during an economic downswing the entire market will experience issues, but the far more diversified companies such as Toyota Co. And General Motors will find it easier to weather the storm.

Keeping in mind that all aspects of the SWOT analysis are pertinent issues that affect Porsche Automotive Group, it must be noted that there are factors that weigh more heavily than others. For example, of the strengths, weaknesses, opportunities, and threats that have been taken into consideration the threats and weaknesses that the firm is facing are of the greatest concern. The most concerning weakness of the firm is that of their limited consumer demographic due to their specialized product. This small customer base is relatively finite. Even with there being viable customers, the number of vehicles being purchased is still potentially small than that of the nearest competition. This issue is specific to Porsche. Most of their closest competition, such as Renault Group of France
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