Porsche internal and external

Arnold Communications undertook extensive market research in order to understand the modern VW buyer and their position in the industry. They set about collecting primary data through extensive interviews, visiting 95 of the top VW dealers and drving VX over 50,000 miles

Over the past several decades, Volkswagen of America (VWoA) has struggled with finding and maintaining a steady growth rate. Instead, over the past 40 years the company has had large peaks and valleys in the number of vehicles sold.[1] One plan to smooth out the growth curve was to position the company into two main categories, classic and sport. This positioning led the company to plan for future growth throughout the brands, as well as define five clear goals for the company to manage its growth.[2] These five goals highlighted several areas of opportunity for the IT department in the company as well as within VWoA.

The Volkswagen Group follows a cost leadership and differentiation strategy. The Volkswagen Group achieves low cost leadership by sharing automotive parts amongst its products and as well as sharing vehicle platforms amongst the other 12 brands under the Volkswagen Group, such as Audi, Bentley, Porsche and Volkswagen Passenger Cars. The Group improves product differentiation by focusing on the product quality improvement, innovation and sustainability. This differentiation strategy helps ensure that the customers are satisfied with the products, and that the customers will be willing to pay a premium for the product.

Dr.-Ing. h.c. F. Porsche AG, alias Porsche AG is a German automobile manufacturer specializing in high-performance sports cars, SUVs and sedans and the introduction of Boxter in 1996 created a lot of furore for the simple reason that this was the first time that the manufacture of the car would happen outside Germany and for the first time Porsche would be entering the fast growing sport-utility vehicle (SUV) market by 2002.

Although Porsche is publicly traded, the company is controlled by only two stockholders, the Porsche and Piéch families. As the quotation by Holger Härter makes clear, the two families hold exclusive shareholder influence over management. An interesting point for class discussion is whether the families actually ever exercise these rights. It is not clear from the information or evidence presented that they influence or direct current management headed by Dr. Wendelin Wiedeking. They may simply agree with current leadership and therefore remain quietly

In 1930, Dr. Ferdinand Porsche founded the Porsche engineering manufacturing company. The Porsche manufacturing engineering company made automobile design for other car companies.

As a result of the increased demand of cars, the competition among car companies is becoming intense. Although the market of car is the biggest growing market in the world, there are still some companies who make cars failing year after year. However, there are some outstanding car companies such as The BMW Group performing distinctly.

Well, throughout this case there was a sense of internal war between the executives of two of the world’s largest automobile companies. Wiedeking, the CEO of Porsche, can be seen as a dominating personality throughout this case. Wiedeking was famous for his efficient production and astute marketing, which turned Porsche into world’s most profitable car company. Therefore, keeping this same attitude in mind, he wanted to make some major changes in the Volkswagen group(VW) because he was aiming to achieve something big. He wanted to remove inefficient operations and also insisted on shutting down the production lines of some cars like ‘Phaeton’ and ‘Buggati’, which according to him were not highly profitable and were a commercial failure. On the other hand, Ferdinand Piech, the CEO of Volkswagen group, had something else in his mind. Unlike Wiedeking, who only focused

Porsche started to downsize their engines to fit their engine emission rates to the new rules. By that move, Porsche was one of the first sports car manufacturer that started to downsize their engines. Downsizing the engine mean is actually pretty simple. They are actually taking 4.8 liter, eight cylinder V8 engine and changing it with the 3.6 liter, six cylinder V6 engine. When they are making the engine smaller, they are also adding that engine a turbocharger to make it much powerful as the bigger engine. (Turbocharger is helping the engine to get more air to the pistons to increase it is performance) Most of the Porsche customers thought bigger engines were stronger and it makes the car go faster. Actually, it is not true because when they add turbochargers to the engine, it makes the car much powerful as the bigger engines. Another thing about the downsizing the engine is the fact that, when the manufacturer downsizes the engine they are actually making the car lighter. When a car becomes lighter, it is actually goes faster than the previous models because it has much power as the old model, but it is lighter. However in order to prove their small engines performance to their customers, in 2014 Porsche started to compete in the FIA WEC 24 hour races to test their new downsized engines to see their performance and reliability in long endurance races.

Ferry Porsche designed the firm’s first car, the Porsche 356. Although its body was an original design many Volkswagen parts were used to save costs. The original car was fast and very light weight, gaining attention by taking first place in the Innsbruck city race. Production was transferred from Austria to Stuttgart in 1950. The firm focused on performance and continued to reengineer and refine the car. By the late 1950’s the Porsche 356 utilized far fewer parts from Volkswagen. Figure 3 shows a 1951 split windshield 356 Cabriolet.

1) The buyer decision process of traditional Porsche customers relies on the motivations that determine these people to select this brand. Their purchasing decision process is based on the exclusivity of the brand that is connected with the car owner. In their opinion, by purchasing a Porsche, traditional customers purchase the exclusivity and luxury associated with the brand. These customers want to purchase a car that reflects their social status and their financial power. In addition to this, they are not interested in the utility of the car, but in the characteristics that differentiate it from utility cars. These traditional buyers are rather interested in their feeling while driving a Porsche in comparison with the size, price, or fuel economy of the car.

Porsche is one of the most well-known brands in the world. In customers' minds, Porsche stands for exclusivity, class, and high quality. The company's marketing strategy is oriented towards identifying the needs and preferences of a small group of customers and on developing car models that satisfy these needs. However, Porsche was forced to introduce several models on the market that were not in accordance with what typical customers of the company usually prefer. These models refer to lower-priced cars, but also to high class SUVs like Cayenne and Panamera.

Torque of a car is very important to its performance. Torque is the measure of how much force is acting on an object and how that causes the object to rotate. (What is torque). Rotating the wheels of a car is torque and that helps the car get up to speed faster. Many performance cars have very fast 0-60 mph speeds, like the corvette, challenger and exotic cars like the Porsche, Bentley, Ashton Martin etc. Everyone wants to know exactly what torque does; it is basically the amount of turning power you have, basically like using a wrench. When looking at car specifications, the torque that is shown is the maximum torque of the internal combustion engine.

However, due to its unique targeting strategy, it has not win compatible brand recognition among the public. Although Audi enter much earlier than BMW and Benz in the luxury car market, its marketing strategy limited increase of public brand recognition even Audi has over 100 years’ history. Besides, although its styles are highly accepted by the targeting customers, there are a growing number of people who can afford luxury cars for family use in China. Lack of vitality is limit of its further market expansion. On the contrary, its major competitor in China, BMW, has launched a series of marketing strategies to promote its high-performance, manoeuvrability, as well as stylish design to attract young people (BMW, 2009) in order to expand its market share. Therefore, although Audi has achieved success in the targeting market, it may consider further development through diversification in product line and advertising campaign.

Volkswagen has set a bold goal of dethroning Toyota as the world’s largest auto maker. This goal includes significantly increasing the North American market share, as Volkswagen currently holds only 2.2 percent of the United States market. Volkswagen’s strategy includes cutting prices and tailoring its cars to better fit the American lifestyle and tastes. This includes increasing the size of its vehicles and modifying certain amenities, such as increasing the cup holder size to fit the larger sized beverages which Americans are known to drink. In order to become the world’s largest auto maker by 2018, Volkswagen’s management team has set a lofty goal of selling 800,000 vehicles per year