Porsche Case Study

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Porsche was founded in 1931 by Ferdinand Porsche. The Porsche company is headquartered in Stuttgart, Germany and it is one of the market leaders in the global high end automobile industry. It produces luxury high performance sports cars and is primarily owned by the Porsche family. 70% of all Porsche cars are still on the road today. Porsche's entire identity and business model is subject to change, as they shuffle executives across product lines and implements new strategies to become the world's leading automotive group. By 2011, the company produced five models with a combined total of 40 different trim levels. Their Boxter, Cayman, and 911 models target sports car enthusiasts, whereas Panamera and Cayenne target luxury vehicle and SUV market segments, respectively. Each model not only meets but with additional sports performance, exceeds the standards of their respective automobile class. Political and Legal forces directly affect the future production of Porsche vehicles with such requirements as regulatory gas mileage and EPA guidelines. Political issues and governmental decisions affect the development of the local economy. For example, the increase of oil prices during the Iraq war and the drop of the dollar compared to other currencies can have a significant influence on sales in the automotive industry. The VW sales group (who currently own Porsche) have laid a plan to exceed GM and Toyota in sales by 2018, but with pending EPA guidelines this may create a definite challenge. Economic factors that affect Porsche Motors include interest rates, taxation changes, economic growth, inflation, and exchange rates. Porsche's market and financial successes are attributed in part to product quality, innovation, strategic partn... ... middle of paper ... ...e are many benefits that can be expected. One benefit, which may not be a benefit so much as a bragging right, is that an expansion of VW brings Porsche that much closer to becoming the world’s biggest carmaker. Additionally, although not directly tied to the merger but an issue that gained additional attention from it, is the EU-ordered repeal of the VW Law. Porsche’s former boss, Wiedeking, was looking forward to changing, and if VW does indeed become more competitive in the global market as a result of the merger or the repeal of the law they could see an increase in profits. Lastly, there is the tension created by putting the competing brands of Audi, Bentley, Porsche, Bugatti, and Lamborghini under the same, corporate umbrella, a move that should naturally result in a reduction in the number of models offered and price increases in the luxury car market.

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