Porsche SWOT Analysis

Porsche SWOT Analysis

 

Porsche AG is a German automobile manufacturer. They design, develop, manufacture, and distribute vehicles, engines, and other technical products. The company is based in Stuttgart, Germany. Porsche is specialized in high-performance sports cars, SUVs and sedans. Origin of Porsche is an engendering department founded by Ferdinand Porsche in 1931. Since 2009 Porsche is part of the Volkswagen AG which is itself majority-owned by Porsche automobile Holding SE. The most popular and famous model of Porsche is the “911”.

Strengths

Porsche has a lot of strengths. One of their biggest by now is that they have become not only a brand. Porsche is a status symbol. A symbol that stands for wealth, luxury and just the feeling of having a high esteem in the society. All models of Porsche are produced in Germany. The slogan “Made in Germany” has a very good international reputation. People link “Made in Germany” with high quality and long-term reliability. Porsche has one of the best and most innovative car factories in the world. Here they also built innovative cars with the newest and class-leading technologies. Their factories are very effective because they are known for having perfected the practice of “lean production”. You can also prove this by looking at the number of employees. The Manpower is very low compared to the use of raw materials and supplies. This indicates a high level of automation. Because Porsche is such succesful with their cars and factories they also founded a consulting firm where they do not only advice the automotive industry, they also support the aerospace, mechanical and plant engineering and shipbuilding industry. All this good reputation brings a big advantage for Porsche. Everyone wants to work for Porsche. That is why Porsche never has a problem with getting skilled and good educated workforce. In addition Porsche is well-known for a good treatment of their workforce. They get a very high profit-share every year.

Weaknesses

After talking about all the strengths Porsche has, it is very hard to even find weaknesses. Especially if you have a weakness for Porsche like i do. But i will try to have an objective view on Porsche. A possible weakness Porsche could have, is that it is not that big as other automobile manufacturers. If you compare Porsche to Volkswagen, Mercedes, BMW or others like Toyota or KIA they are very small. But the question is does Porsche even want to be that big and would it bring advantages. I think it is good that Porsche is not that big because Porsche also has not that many customers as the big players do. They have a limited customer sector because not everyone can afford a Porsche. But this is also what made Porsche become a status symbol. If they would be as big as the others and everyone could afford it, it would not be a status symbol anymore. Porsche also has a high pressure because there are many other high-performance car manufacturers such as Ferrari, Lamborghini and so on. A big weakness of Porsche is its location in Germany (Stuttgart/Zuffenhausen). This location offers a very limited space to grow because it is right in the middle of a town. It is very expensive to grow in this location. Still Porsche has decided to stick with this location because of their history and because this was the place where all began. They invested a lot of money to build new factories there, where they also want to build their electric car in the future.

Opportunities

Porsche has some opportunities for the future. They are already trying to fulfill one. The expansion to other countries, especially to Asia (China,Japan,Indonesia). They already have a lot of success with that. From 2015 to 2016 Porsche increased their deliveries to China by 12%. Here you can see the potential that hides in the Asian market. Another opportunity is the electric mobility. Porsche can be a big player in the electric mobility if they can compete with other companies e.g. Tesla. What Porsche also can do and what they are already doing is they expand the name Porsche into other industries/markets. For example Porsche has their own clothing and they also have a lot of accessories like perfume.

Threats

One big threat in the future is the electric mobility. Nobody knows how customers of high-performance cars will react to electric cars who do not have the typical car sound. And also the competition with the other brands like Tesla will be a hard task for Porsche. Another threat or big task for Porsche is to stay in this high level of success. To get to this level is one thing, but to remain there is another. These days the customer needs/demands are constantly rising and it will be very hard to satisfy them. The next threat is the topic of climate change and pollution. In Germany there is a big debate about that and about how bad the cars pollute the environment. They are even thinking about driving bans in german cities and they are thinking about a rule that says until 2030 there are only electric cars allowed. Facing all those threats nobody can say if the car will be number one transportation in the future and if not what are the automobile manufacturers going to do? They have to be able to react very fast in the next 30 years to be able to adapt to the changes they are facing.

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