Saab Complete Case Study

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Introduction Due to the economic crisis in 2008, car sales all over the world fell considerably. General Motors, the largest automaker in America, suffered quite badly; declaring bankruptcy on June 1st 2009. It was time to quickly rethink operations or close GM for good. One of the first things that had to happen was that GM had to separate itself from Saab, a Swedish company they had owned and had been losing them money for the past 20 years. GM sold Saab to a Netherlands company called Spyker Cars NV. Saab originated as a bomber and jet fighter producer for the Swedish Air Force in World War II. They produced their first car in 1948. Just before car sales fell significantly, Saab was producing and selling 130,000 vehicles per year mainly to the Netherlands, the UK, and North Eastern US. Problem In the first few decades of its creation, Saab had created good brand loyalty across Canada and the United States. However, under GM’s reign, Saabs were sold in Saturn dealerships. By selling Saabs next to Saturns, a basic and generic vehicle, GM wilted Saab’s luxurious imported vehicle identity. Despite the challenges, Saab still has the opportunity to reposition itself successfully. Considering the Canadian marketplace, which automaker is Saab’s closest competitor? What is Saab’s target market? After re-entering the Canadian marketplace, what distribution strategy should Saab take? Facts/Assumptions • Saab’s decrease in sales are caused mainly by increasing competition of other luxury sport cars from Mercedes and Audi • Saab hopes to attract customers who seek premium cars that offer a unique design and high performance. The Saab brand had a reputation for delivering cars with top quality and trend-setting designs until GM had taken over, and made them seem simple and unsophisticated when sold side by side with Saturns • Saab will be re-entering the Canadian

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