Porsche is a worldwide famous German producer of Sports cars, Sedans and SUV’s. Founded in the year 1931 by Ferdinand Porsche the company was originally named “Dr. Ing. H. C. F. Porsche GmbH” and its main headquarters were located at the center of Stuttgart.
The first order for a car leads to the making of the biggest designs ever created, the Volkswagen Beetle. They are currently manufacturing the sports cars and the 911. A model similar to Boxter was also released named Cayman. In 2009, a luxury sedan model, Panamera was launched.
Strength in The SWOT analysis of Porsche
The strength of a company is what it showcases in front of the crowd and what has helped it make a name for itself. Some of the strengths of Porsche are:
- Reputation and Brand Image: Porsche has not only made a name for itself but the footprints of the brand are very strong among the crowd. It is known for its heritage sports and luxury cars along with the automotive representation. The cars are preferred by high-end customers not only because of the price range but the machine power as well.
- Brand Extension: They might only have seven types of cars available under their belt but the number of variations they offer makes them the brand with highest brand extension opportunities. They have two different varieties of SUV, four types of Sports cars and a luxury sedan.
- Sports Base: Their base in the motor racing world is the strongest out of all the other brands because of the quality of the products they use. They especially have a line of machines dedicated to the motor racing base. The 911 is a world known machine that is on sale for the longest time because of the machine it consists of.
- Loyalty: Porsche’s one biggest strength is their strong and loyal fan base. Apart from being a brand for high-end customers or luxury based cars, Porsche is in talks with the simplest of minds too. The loyalty base is very high which keeps the brands’ position on top always.
- Employee Base: The technical and the management base are efficient and productive by all means. They are always trying hard to create something better and stronger. The employee base in total consists of some 12000 employees.
Weaknesses in The SWOT analysis of Porsche
Weaknesses of a brand are the parts where a company works for their betterment while every mistake is taken into account. Some of the weaknesses of Porsche are:
- Expensive for Middle base: The Porsche cars are made with a mindset for the upper or rich base of people which is a weakness. Since their presence among the middle base is almost none because of the extreme price range.
- High Maintenance: Their maintenance charges are high when compared to other luxury car models or sports cars. The running cost of the Porsche cars is also increasing with every new model that is introduced to the crowd.
Opportunities in The SWOT analysis of Porsche
Opportunities are the places where the company has a scope for improvement which further works for their image in the future. Some opportunities for Porsche are:
- Expansion: Expansion is an opportunity that Porsche has to adopt soon or in near future to increase their market area or customer base. Since it is a target based product, the production can be transferred to other countries like China for better outcome.
- Exclusiveness: Creating cars that are exclusive in the recent market is a plus point for the brand which will also effectively increase their sales. Keeping the sales high would result in a better report for the upcoming years.
- Future Cars: Increasing the variation of cars can be an option while thinking of taking up new opportunities since the range for the middle-class base is very low. So the creation of cars in that range will increase the customer base too.
- Manufacturing and Delivery: The expansion of the market area comes in sync with this segment since once the manufacturing base is expanded, the delivering of products to a greater mass and area becomes easy.
Threats in The SWOT analysis of Porsche
Threats are something that can harm the company’s reputation or market value. Some of the threats for Porsche are:
- Government Policies: Government policies in some countries might result as a restriction for the selling or running of Porsche Cars. So, fixing their issues while they manage the policies is the better option for the company.
- Recession: Increase in the recession has led to a decrease in the number of people being able to afford such high range cars produced by Porsche. Launching cars that can be purchased by the greater mass is another solution to the threat of losing customers.
- Competition: With the increasing competition in the market and their biggest competitors being “tesla”, they need to cater much better products to their existing customer base.
Alternatively, check out the Marketing91 Academy, which provides you access to 10+ marketing courses and 100s of Case studies.