Porsche Case Study
Porsche
Catherine J. McConnehead
MGT 4070
January 27, 2015
Dr. William Hahn
South University, Savannah
Analysis of Porsche
“I couldn’t find the car of my dreams, so I built it myself,”
Ferdinand Porsche
One of the key goals of a company is branding. Many companies strive to create a brand that will be memorable to every consumer over time. It is a part of the chain, if done correctly, will be the strength of the company and needs to be stronger than ever. Porsche is one of those companies. Porsche’s brand has been established since the 1930’s by Ferdinand Porsche when he designed and mass-produced the “Ur Beetle” (pg 317). Porsche has established its brand by producing high quality sports cars. The sports cars were a part of a niche market Porsche capitalized on. The text states, “Porsche was a powerhouse in racing…” Having victories in all major racing events which included the 24 Hours of Le Mans and Can-Am racing series just to name a few. Not only did the 911 allow consumers to know who the brand, but it also kept the company profitable. Porsche created different sports cars. Yet, the company did not hit a snag, even when the economy went belly-up.
The beginning of the economic challenges was a trying time for the company. Oil prices were sky high during 2007 and Porsche started to re-engineer many of the high efficiency cars. President Obama directs the National Highway Traffic Safety Administration, and the EPA to create vehicles with higher miles per gallon (mpg), so they will be able to be more efficient. The Corporate Average Fuel Economy (CAFÉ) gave fines to carmakers that were outside of this regulation. Among the central elements Porsche has in its business model, the number one element is manufacturing. The company does not have a plethora of plants where the vehicles are manufactured. Porsche outsources much of the company products, yet they focus on the development,
Catherine J. McConnehead
MGT 4070
January 27, 2015
Dr. William Hahn
South University, Savannah
Analysis of Porsche
“I couldn’t find the car of my dreams, so I built it myself,”
Ferdinand Porsche
One of the key goals of a company is branding. Many companies strive to create a brand that will be memorable to every consumer over time. It is a part of the chain, if done correctly, will be the strength of the company and needs to be stronger than ever. Porsche is one of those companies. Porsche’s brand has been established since the 1930’s by Ferdinand Porsche when he designed and mass-produced the “Ur Beetle” (pg 317). Porsche has established its brand by producing high quality sports cars. The sports cars were a part of a niche market Porsche capitalized on. The text states, “Porsche was a powerhouse in racing…” Having victories in all major racing events which included the 24 Hours of Le Mans and Can-Am racing series just to name a few. Not only did the 911 allow consumers to know who the brand, but it also kept the company profitable. Porsche created different sports cars. Yet, the company did not hit a snag, even when the economy went belly-up.
The beginning of the economic challenges was a trying time for the company. Oil prices were sky high during 2007 and Porsche started to re-engineer many of the high efficiency cars. President Obama directs the National Highway Traffic Safety Administration, and the EPA to create vehicles with higher miles per gallon (mpg), so they will be able to be more efficient. The Corporate Average Fuel Economy (CAFÉ) gave fines to carmakers that were outside of this regulation. Among the central elements Porsche has in its business model, the number one element is manufacturing. The company does not have a plethora of plants where the vehicles are manufactured. Porsche outsources much of the company products, yet they focus on the development,
References: Mangeldorf, T. (2009, October 26). Porsche and VW: What the Hell Happened? Automobile Magazine.