Porsche internal and external

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BUS 488- STRATEGY PORSCHE NG KEE YANG ANDREW B1114179 1. Strategic Profiles and Case Analysis Purpose Porsche’s mission, vision and its reputation are clouded after the take over of VW group. VW group oversaw the take over of other famous brands like, Bentley, Buggati and Lamborghini. Under the new leadership and direction from the top brass, the first move was to restructure Porsche. The restructuring saw Porsche’s top executives sent to other car brands in VW group to share expertise and Porsche’s success. Replacing them are executives from other car brands, like Matthias Muller from Audi whose main aim was to integrate Porsche into VW family, extend its product line and increase production, from 80,000 units to 150,000…show more content…
Therefore, it would see a need for Porsche to improve its engine efficiency to continue to provide the same amount of horsepower and lower fuel requirements. vi. Global trends In the mid 1990s, customer preference had indications of a different preference of cars, SUV begin to dominate the road. Porshce then decided to extend its product line to include a SUV- the Cayenne. It was a move that ensure profitably growth in the following years b. Industry Analysis i. Potential Entrants The potential threat of new entrants is low as it costs high when it comes to producing a high performance car. The barriers to entry present a low threat to Porsche when it comes to a brand that could immediately match and threatens Porsche’s current brand and market share. The lack of research and development, the technology that was hone throughout the years for Porsche and the Brand recognition that was built throughout the years pose as a difficult and near impossible for any new brand to come into the market and have such an impact. ii. Bargaining Power of Suppliers As Porsche makes their own engine parts for the Models the only bargaining power that could come from is from the commodities market that deals with the raw material that Porsche needs. Only the manufacturing of Boxster segment is produced externally. The first manufacturer of the Boxster was by Valmet and Magna Steyr
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