Submitted To: Sir Col. Imatiz

Submitted By: Raja Sumair Jillani

MBA-IV (HRM) 01-220092-032

Dated: 25-05-2011

Introduction:

Strong growth, solid benefit: For years Porsche has been driving on the fast track. While Opel, Ford, VW and Mercedes need to cut jobs, the Swabians have the opportunity to create new jobs. What is Porsche CEO Wendelin Wiedeking doing differently? How does Wiedeking realize his strategy? And why should a small and highly profitable maker of sports cars suddenly invest its fortunes to a struggling mass-producer? That was the question that alarmed shareholders asked on September 25th, 2005 when Porsche announced plans to buy a 20 % stake in Volkswagen, Europe's biggest carmaker. Today in January 2007, Porsche holds 27.4 % of VW stocks (wants anincrease to 29.9 %) and is the biggest VW shareholder.

Vision:

To remain committed to its own values, to be the leader in the market place offering high quality cars with most advanced technologies

Mission:

German luxury car manufacturer with strong values “I could not find the car I would been dreaming of. So, I decided to build it myself“ 

Objectives:

conquest new markets

reach new customers 

reinforce environmental concern

develop hybrid cars

Strategic Analysis of Porsche

The Porsche business model is based on a precisely defined, long-term invested product and brand strategy, which is called focalization on the luxury segment. In its center it focuses on performance, sportiness and emotion. Porsche builds automobiles, which are the most beautiful combination between two points, the

curve according to the Porsche advertisers. Porsche held on to its principles since its foundation.

environmentally friendly:

produce, sell and care for high quality, exclusive, sports cars at the highest level in terms of environmental and safety technology. porsche want to use resources sparingly and keep harmful environmental impact as low as possible. porsche develop products and manufacturing processes that are as environmentally friendly as possible, and porsche constantly strive to assess their environmental impact in advance

Some other strategies are:

Market development :

Merger between Porsche and Volkswagen, enabled them target new audiences. Asia Pacific, china, Russia, India, Brazil (BRICS) and the Middle East. Were the international markets.

Product Development:

Modified products development:

Porsche Cayenne

New product development:

Porsche Panemera

Porsche Cayenne Hybrid

Market penetration/Consolidation:

Porsche 911 Carrera

Porsche Cayman

Porsche Boxster

Porsche Turbo

Downsizing:

North America (Financial Crisis)

Germany: (unstable economic conditions, increase in gas price, over taxation on vehicles).

Maintain Market share:

Australia

New Zealand

Middle East

Diversification:

Related vertical forward movement

Porsche Panemera

Unrelated diversification

Porsche Design

SWOT:

The SWOT analysis summarizes the essential conclusions drawn from the environmental and the strategic capacity analysis of an organization. The strategic capacity (SW = strengths and weaknesses) results from the amplitude of the company’s resources and competences, which allow them to survive and prosper. (OT = opportunities and threats),which consists to identify the fundamentals of the concurrence to the firm in its industrial surrounding.

Strengths (Internal)Strong Brand | ImageHigh quality productsFocalization on a profitable niche marketVery high financial marginEffective risk managementOperational Flexibility | Optimized value chainPersonalization of Wiedeking and the brand

Weaknesses (Internal)Focus on luxury segment leads to restrictedgrowth in the luxury segmentRelatively small innovation capacity –>dependence on external innovation suppliersDependence on Wiedeking as a manager

Opportunities (External)Entering new segments through involvementin VW (diversification)Abolishment of VW law would lead to strongerinfluenceTechnological synergies with VW

Threats (External)Strong competitive rivalry in automobileindustryHigh ecological standardsDependence on oilAssociation of Porsche’s brand with VW

CONCLUSION:

High competitive rivalry

Strong brand image due to the well management of Porsche since the beginning (success story)

Environmental issues may have an effect on brand image: needs to focus on eco friendly strategies.

Customer satisfaction is driven by the projection of Porsche’s lifestyle through its products.