Porsche Case Analysis

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Nahian Ahmed 5125304 Sec 403 PORCSHE CASE STUDY: 5 force analysis of Porsche Company -Barriers to entry is high as requirement of high capital and brand goodwill -Bargaining power of buyer is low because the price is not set by demand -Bargaining power of supplier high because they can set the price according to their cost and need -Availability of substitute goods high such as Toyota -Level of rivalry is high as there are many competitors such as Lexus etc. However the industry is attractive as it’s catering to only a selective group of people.it can be used to gain a significant market share. What are the competitive advantages of Porsche Company? Business model- using focused differentiation strategy. It uses innovation and brand name to give it the needed competitive edge. With value added activities such as design and market development all are part of its differentiation strategy. Reputation and Innovation-recognized as the innovative technological pioneer in the automobile industry Balance scorecard (KPI) the balance scorecard used to keep track of all the dealership and their performance gives them the required feedback and market knowledge, which is also one of its main competitive advantages. How to stay ahead of the competition with balance scorecard? Under focus business level strategy Porsche can use the following 3 potential solutions: 1.Use balance score card in other market- try using balance scorecard in the new market and new area that can be explored. Such a step can give them first mover advantage to develop their new products design and technological innovation. 2.Continuous improvement and regular environmental analysis- they need to continuously engage in environmental analysis of their market and screen for new useful feedback, which can be used to develop their business model. 3.create incentive

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