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SKODA CASE STUDY
Transcript of SKODA CASE STUDY
Skoda is an automobile manufacturer that originates from the Czech Republic. The car manufacturer was founded in 1895 by Laurin & Klement, it then became Skoda and became an owned subsidiary of Volkswagen.
PEST analysis which includes Political, Economic, Social and Technological analysis categories describes a framework of environmental factors used in strategic management.
Q.1) What was the key weakness that Skoda was able to identify?
Skoda was able to identify the fact that its out-dated perceptions on its cars were partly related to the company not being able to fit-in the fragmented market.
Q.2) What strength did Skoda use to turn its brand weakness into an opportunity
It used it strength of collecting valuable consumer feedback, It then focused on this strength and put cars on the market that focused on the customer experience.
-high consumer power for basic cars such as the Skoda Fabia
The greater market has an abundance of models with similar features
Porter-Five Forces Analysis
A Porter five forces analysis is to analyze the level of competition within an industry and business strategy development using a unique framework map.
Porter Five Forces of Skoda
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- Intensity of rivalry among brands in the industry and the ways they behave competitively toward one another
-High intensity of competition
-Skoda only has only 1.7% of the car market share
-Very low threat from new competitors in the automobile market since it is extremely difficult to gain recognition without prior prestige within such a crowded and competitive market
-Ford,Peugeot, and Renault
- Low consumer power for more luxurious up market cars like the Skoda Superb
Higher quality makes it more exclusive in a basic-car dominant market
-low consumer power for family sized cars such as the Skoda Octavia
Car companies tend to advertise the fashionable and convenient two door car
Threat level based on consumers’ ability to acquire similar items from different retailer
-High level of threat for the basic “city car” since there is over 2000 different models of cars that are being advertised on the same set of features
-Medium/high level threat since there are many models of cars appealing the same features but fewer since the middle class is larger than the higher up class.
-low threat for family cars due to fewer production and advertising resulting from 2 door fashion trend
Pest Analysis of Skoda
-The need comply to EU legal and environmental regulations
-Economic depression resulting in weak economies causes difficulty to endure in the automobile market that is
-Political change as well as War makes it extremely difficult for car retailers to thrive in the market
-Car owners preference a car that would paint a good image
-Consumers have different niches depending on what appeals to them
-Skoda used JD power surveys from customers all around the world who review cars online, to better their models
-Skoda technologically advanced the petrol and diesel engine to cut down on fuel consumption and emission resulting in less use of energy
- Skoda, with the help of technology have developed cars with lower noise levels and quality sound
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Q.3) How has Skoda strategically addressed external threats?
- Recycling as much as they can
- Using environmentally friendly machinery
- Designing cars to cut down on fuel consumption
- Designing cars to have low noise and better sound
Q.4) What in your view are the important benefits of using a SWOT analysis ?
I find that the most benefits of using a SWOT analysis is to identify the weakness and threats & opportunities of a corporation. These can then be utilized to redirect organizations to effectively plan a course of action to meet their goal while dodging pot holes and embracing opportunities and exemplified by Skoda.
BY: Fahim Uddin