Implementing Strategy in Marketing

This report provides a detailed analysis of the current position of Porsche in its external environment with the use of different strategies adopted by the business to attain its market position.

Marketing-
Implementing
Strategy
Porsche
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Table of Contents
Introduction................................................................................................................................2
Overview of Porsche..............................................................................................................2
Strategic Audit and Evaluation of the current position of Porsche........................................3
Positioning Strategy...........................................................................................................4
Differentiation Strategy......................................................................................................5
Corporate Level Strategy...................................................................................................6
Core Competencies of Porsche..............................................................................................7
Value Chain Analysis of Porsche.......................................................................................7
Critical evaluation of Porsche................................................................................................9
Turnaround.......................................................................................................................10
Mission of Porsche...............................................................................................................11
Vision of Porsche.................................................................................................................11
Value of Porsche..................................................................................................................11
Ethics or Principle of Porsche..............................................................................................12
Capabilities of Porsche to Innovate......................................................................................12
Original Equipment Manufacturer/ Vehicle Development..............................................12
E-Performance..................................................................................................................13
CO2 Reduction.................................................................................................................13
Testing..............................................................................................................................13
Non-Automotive..............................................................................................................13
Corporate Social Responsibility of Porsche.........................................................................13
Further Actions for Porsche Necessary for Meeting its Corporate Social Responsibility
..........................................................................................................................................15
PESTLE Analysis.................................................................................................................16
Political Force..................................................................................................................16
Economic Force...............................................................................................................16
Social Force......................................................................................................................17
Technological Force.........................................................................................................17
Legal Force.......................................................................................................................18
Environmental Force........................................................................................................18
Porter Five Force Analysis...................................................................................................18

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The threat of New Entrant................................................................................................18
Threat of Substitute..........................................................................................................19
Power of Buyer................................................................................................................19
Power of Supplier.............................................................................................................19
The competitive rivalry among existing players..............................................................19
SWOT Analysis...................................................................................................................19
Strength............................................................................................................................19
Weaknesses......................................................................................................................20
Opportunities....................................................................................................................20
Threats..............................................................................................................................20
Ansoff Matrix.......................................................................................................................20
Market penetration...........................................................................................................21
Conclusion................................................................................................................................21
References................................................................................................................................22

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Introduction
Strategy implementation is the transformation of the selected strategy into the action of the
organization to attain the strategic objectives and goals. Strategy implementation is also
called as a way through which a business must create, utilize, and combine its control
systems, culture, and organizational structure to track strategies that could support in
attaining competitive advantage in the market and improved performance (Morgan, Katsikeas
and Vorhies, 2012). Organizational structure assigns task and roles to the employees and
explains how these roles and task could be correlated to increase, efficiency, quality, and
satisfaction of the customer which are considered as the pillars of competitive advantage.
However, the organizational structure is not enough to provide motivation to the employees
and the successful implementation of the strategy. There is a need for an organizational
control system too. This control system provides executives the motivational incentives for
the workforce and feedback on organizational and employees performance (Chang, 2016).
The organizational culture is the collection of attitudes, beliefs, norms, and values that are
commonly shared by the groups and members of the organization. The intent of this report is
to provide a detailed analysis of the current position of the Porsche in its external
environment with the use of different strategies adopted by the business to attain its market
position. The report has also critically evaluated the company’s vision, value, and ethics and
its capabilities to successfully innovate in the market. In addition to this, the report is
highlighting the current position of the company in relation to its corporate social
responsibility initiatives. In the end, the report evaluated the strategic options for the growth
of Porsche with the help of different marketing models.

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Overview of Porsche
Porsche is a well-known automobile brand of Germany which specializes in manufacturing
high-performance Sedans, SUVs, and Sports Car. Headquarter of Porsche AG is established
in Stuttgart. The company is owned by Volkswagen AG, which is majorly owned by the
Porsche Automobil Holdings SE. The current product portfolio of Porsche is comprised of
Cayenne, Panamera, \ 718 Boxster/Cayman, 911, and Macan. The company was founded in
the year 1931 by Ferdinand Porsche. In its initial phase, the company was involved in the
work of motor vehicle development and consulting and did not manufacture any cars under
its own brand. The very first assignment that the company received is from the government of
Germany for designing a car for the public that was a “Volkswagen”. This lead to the
designing of the Volkswagen Beetle, which is one of the most successful designs of the car of
all time. In fact, one of the cars that are the Porsche 64 was designed in the year 1939 with
the use of different features and components of the Beetle (Porsche, 2019g).
The design and engineering of Porsche are called as the hallmark of the competitive
advantage of the brand. With the support of its 100% wholly owned customer engineering
development, the engineering group of Porsche that is PEG, company has successfully
established its wide-ranging proficiency in the vehicle production and development
accessible to clients from different industries. PEG was measured as the ‘secret weapon, of
Porsche, as it allows the company to hire more engineers than if it worked alone, offered it an
advantage in product development (Porsche, 2019h).
Strategic Audit and Evaluation of the current position of Porsche
Porsche is considered as the most profitable car company in the world. It is a matter of
thought that how the company changed its way of looking in 50 years. The answer to this
though is how the management and engineering team of the Porsche adopted differentiation
and positioning strategy to establish the brand in the market in front of its rivals.

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Source [https://www.slideshare.net/derekmitchell562/porsche-strategic-marketing-analysis-
17225184]
Positioning Strategy
Positioning a brand is all about highlighting the distinguishing characteristics that help it in
making different from its rivals and attractive to the market. It helps in gaining a good
position in the mind of the customer. It helps in placing the brand over the top in the
performance assessment done by the customer and in return distinguishing itself from the
products of rivals (Janiszewska and Insch, 2012).
Though, Porsche Company offers a sort of services in the automobile industry with a wide
variety of brands comprising BMW, Lamborgini, Mercedez Benz, Aston Martin, and Ferrari.
Porsche has been capable enough to scrape out place in the segment of car that a number of
brands have failed to achieve or are presently putting efforts to copy. This segment that is
covered by Porsche is known as “Sports Luxury” segment (Porsche, 2019c). This category of
the car market distinguishes itself from the other entire premium car brands and super-luxury
brands. The entire portfolio of the Porsche is comprised of sports cars irrespective of its

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design as well as the format which are framed with the aim to serve all the purpose of daily
life. The company gains the benefits of marketing which represent the brand as more than
luxury than BMW and Mercedes Benz. Porsche is also sportier than these luxury brands and
the major intention of the company behind its designing is to meet the purpose of being used
every day means such that it is called as the world’s most reliable sports car. The company
has successfully positioned itself in the market as the brand which could be derived daily to
work and thrash it around a track on weekends.
The factor of reliability distinguishes Porsche from other super-exotics cars that are highly
expensive and owns a reputation of not designed to be reliable. Porsche has initiated
manufacturing of sports car. The company has been successfully in the production in Le
Mans 24 Hour Endurance race and Porsche 911 is majorly utilized as the factory setup cars in
the series of racing across the world (Porsche Innovation, 2019).
Differentiation Strategy
The Porsche Company has also adopted the differentiation strategy under which it has
entered in the segment of sport luxury SUV. In this segment too, the company attained huge
success that has not just transformed the financial fortunes of the company but also has
manufactured more SUV in comparison to its sports cars. It has today become the fact that
the most iconic manufacturer of the sports car in the world not majorly sells SUV’s (Porsche,
2019i). This alteration in the activity of the brand has not led to a dilution of the sports car
brand. The company has been clever and hence they market their SUVs in the segment of
sports luxury which reflects that the company is still serving the same target audience as
before. Customers that Consumers that were unable to purchase the Porsche 911 because of
its shortcomings of the functions, but SUV offer customers a complete experience of the
vehicle that can be useful for the commuting and families.

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Corporate Level Strategy
The above analysis highlights that Porsche is known in the market for offering cars in the
sports car segment including its SUVs. This has supported the company in increasing its
profit margins. The profits that the company earns from its SUV segment success has been
majorly invested in enhancing the standard and performance of its sports cars. The company
has realized that the brand’s success majorly is based on the desirability and perception of its
sports car segment even if it sells SUVs more in comparison to sports car because it is
important for the success of the brand. It endures concentrating on its core business segment
that is sports cars. The perception and emotion of the Porsche surpass the form as well as the
shape of 911 now, however, it is yet inseparably related to the iconic 911 (Stallwood, 2019).
Porsche brand has consequently simulated the success with the SUVs of mid-size, the
Cayenne, and also introduced the Panamera sedan sports car, and the Macan which is the
Compact Utility Vehicle. The company has also involved in the manufacturing of soft top
and compact coupe premium sports cars are known as 718.
The results of the effective positioning and differentiation strategy of the Porsche reflects that
the company is capable enough to own the segment in the sector of automobile which has not
been yet matched by anyone else. This has allowed Porsche to become the most profitable
company of cars across the world and have enough capability to endure to be at the top of
designing desirable as well as reliable sports luxury vehicles.
Recently, the company has experienced the threats from the company like Jaguar with its F-
Type Sports Compact Car and F-Pace SUV. Though Jaguar is considered to be the luxury
brand it does not possess a similar positioning as Porsche has in terms of prestige, value, and
reliability. In recent time, Maserati has also introduced its SUV car and is regularly putting

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efforts to enhance its brand image however deals with a similar viewpoint from which Jaguar
deals.
Core Competencies of Porsche
Value Chain Analysis of Porsche
Source [(Dudovskiy, 2016)]
Value chain analysis is one of the strategic tools that is utilized to evaluate the internet
activities of the company. The goal of the tool is to identify the most valuable activities of the
business and which of the activity could be improved in order to attain competitive
advantage.
Primary Activities
Inbound Logistics
Wide distribution channel - Porsche and Volkswagen both operate a business together under
a single umbrella. Porsche operates its business with a simple distribution channel with an
edge over its rival automobile companies. The company comply with the concept of a direct
channel of distribution Sales representatives are responsible to attend clients and explain all
the functions of the vehicle (Perner, 2019). Thus, this result in quick follows up.

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Operations
Engineering and consultation on engine and design of the vehicle – Porsche has established
its own engineering and consultation services which are responsible to make the finest
engines and designs all over the world. The company understands the importance of customer
satisfaction and therefore it gives importance to the demand of the customers.
Outbound Logistics
The logistics department of Porsche is accountable to handle the portion of packaging and
picking of vehicles in the warehouses and all the other operation are outsourced by the
company from different service providers.
Different market segment – Today, Porsche is not manufacturing sports car, it is also
involved in the manufacturing of SUVs and Sedans.
Marketing and Sales
Brand Image – Porsche has built a strong brand image in the market and in the mind of its
target audience through its reliable service and vehicles (Saharudin, 2016).
Service
Consulting – Porsche has established a different consulting department with Porsche
Consulting Group name. This group is responsible to provide consultation services to
manufacturers and corporate customer.
Supporting Activities
Firm Infrastructure
Production – Porsche has established the world's best and biggest factory of a sports car in
Germany incorporated with advanced technology. This has allowed the company to innovate
in different segments of the car such as SUVs and Sedan.

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Human Resource
Trained employees – The employees of Porsche are trained and expert workforce who ensure
the service, design, and quality of its cars. In addition to this, employees of the company
provide the best customer service to its employees through their knowledge which leaves a
positive impact over customers (Porsche, 2019j).
Technology Development
Porsche has implemented different advanced technology in its system for designing highly
innovative cars for its customers. Some of the advanced technology adopted by Porsche is E-
Performance, 919 Hybrid, etc. (Baggott, 2019)
Procurement
The procurement and support management department provides support Porsche in finding
the finest suppliers for purchasing the different equipment of the car. With years of
experience as the premiums manufacturer of cars, the company understands what is essential
in regards to procurement for having a robust supply chain (Porsche, 2019a).
Critical evaluation of Porsche
In early 2008, the supervisory board of Porsche, which was comprised of Volkswagen
Group’s Chairman Ferdinand Piëch, decided to increase its holding in in the Volkswagen
group from 31% to 50% which provides it the major stake (MIT Sloan Management, 2009).
There were many investors who were looking at the Porsche’s takeover of Volkswagen and
being considered as one of the wise move for the independent and small company of car that
dissimilar to its competitive brands like Lamborghini, Lotus, Jaguar, , and Ferrari has handled
to majorly evade being gobbled up by the huge industry players like Ford, Chrysler, and
General Motors.

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Carrying the research and development function of both the companies can possibly decrease
the sense of belonging of the engineers of Porsche and could have demotivated them. While
Porsche is a brand that has flourished on the healthy profit margins, Volkswagen’s business
model was always about volume. Besides this, if the engineering of Porsche was closely
related with the complete portfolio of Volkswagen, the business can have lost its capability to
sell external engineering to different OEMs as they would be sharing their innovation as well
as strategies with Volkswagen. But the senior leaders of Porsche ensured that the
incorporation of Volkswagen VW has not adversely influenced the outside engineering
business of Porsche (MIT Sloan Management, 2009).
Turnaround
Porsche brand hit the speed bump in the year 1990 when the procedure of production
determined as the “fat and wasteful”. Between the year 1986 and 1993, the sales of Porsche
has decreased from around 50,000 units to 14,000 units. The brand was at the bankruptcy
verger and there were different rumors regarding the possible takeover (MIT Sloan
Management, 2009).
The new CEO of Porsche that is Wendelin Wiedeking presented a turnaround focused on
creating new capabilities in the synchronized and lean manufacturing engineering. In ancient
time, the celebration of Porsche of craftwork inspires people to make efforts on their own
procedures in place of incorporating with the complete line of production. However, with
time this strategy also became a major handicap for the brand. Hence, as the turnaround
strategy, the management of the company took the decision of extending the product line of
Porsche beyond its sports car position which has for many decades dominated different
companies in the market.

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Mission of Porsche
The company is committed to offering a faultless service to its customers of premium cars. It
provides maximum attention to its customers and takes of all the aspects of the business. The
company is also focused on building a strong connection with the employees, with the help of
common passion of the company's goals and vision. The company desires to have hard-
working, empowered, and motivated workforce. Furthermore, the Porsche Brand holds a
commitment to meet its corporate social responsibilities (Porsche, 2019k).
Vision of Porsche
The vision of the Porsche brand is to look towards the coming future with a complete
understanding of the company's past.
Passion – The commitment of the brand touches the company's mind as well as a heart for
growing company further with changing time (Porsche, 2019k).
Leadership – The leaders in the company are very much enthusiastic and so as they motivate
their employees to be. The company operates as the leader in the market with the courage to
share a better future and be proactive as well as flexible for the changing trends and market.
Innovation – The main asset of the company are employees who work by searching,
imagining, creating, delighting but also honoring and protecting the policies as well as
traditions of its franchises (Porsche, 2019b).
For the future, the company's vision is to signify premium and volume brands and become
the top company in the context of customer service and sales.
Value of Porsche
Responsibility: The Company meets its responsibility of taking care of its customers and
value its workforce and consider the environmental and social issues.

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Trust: The management, workforce, and especially engineers’ work hard in the company in
order to increase the trust of the clients and raise mutual trust among partners and colleagues.
Teamwork: The Company encourages valuing and respecting colleagues and building a
positive environment of work (Porsche, 2019k).
Ethics or Principle of Porsche
The dream of Ferry Porsche of a perfect sports car has always motivated the employees all
over company’s history and the business is getting closer to attain it with the help of each
concept, model, and event development. Along with this, the employees follow an ideal plan
that unites everyone in the company. This plan is generally referred to as the principle of
Porsche that is "to always get the most out of everything”. From the initial phase of the
company only, everyone has exerted efforts for translating the performance into success and
increasing the speed of the procedures intelligently. Today, it is not about horsepower, it is
about innovative ideas per horsepower. This principle has been originated on track and could
be seen in all the cars that are manufactured by the brand. The management calls it
“Intelligent Performance” (Porsche, 2019l).
Capabilities of Porsche to Innovate
Original Equipment Manufacturer/ Vehicle Development
The company maintains direct relations with a different manufacturer and has a high level of
project experience. Engineering of Porsche possesses expertise and capabilities of an OEM.
The company holds the capability of covering the complete procedure of product creation all
over the technical disciplines, comprising support activities in the development procedure for
a series of production.

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E-Performance
Since the "Semper Vivus” and “Longer-Porsche’ projects were introduced by the company,
E-Performance has worked as one of the most essential parts of the company's development
expertise. The engineering team of Porsche has exerted its experience and is pledged to
continue to produce solutions that can bring together performance as well as sustainability
(Porsche Engineering, 2019).
CO2 Reduction
Company has successfully achieved the level of decreased consumption of fuel without
compromising its efficiency as well as performance due to its years of experience in the CO2
reduction field. From decreasing engine dislocation by downsizing to manufacturing
completely electric and plug-in hybrid vehicles, engineering of the Porsche design ground-
breaking technologies for its clients for decreasing CO2 emissions.
Testing
Porsche tests and enhances the reliability of the development, skilfully for functionality,
efficiency, and economy. The company commits to preserving the customer's confidentiality
and brand identities.
Non-Automotive
The proficiency of Porsche Engineering’s development is not restricted or limited to the
automobile sector. Company has expanded its operations in different segments such as
forklifts, outdoor barbecues, equipment of water sports, and crane cabins.
Corporate Social Responsibility of Porsche
Corporate social responsibility is considered as a self-regulating business model that supports
the business to be socially responsible to its stakeholders, public, and to itself. By meeting

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corporate social responsibility, businesses can get the knowledge of the type of impact they
have on different aspects of society like social, environmental, and economic.
In regards to Porsche, acting sustainably is all about assuming accountability towards society,
environment, and people. Therefore, it is very essential for the company to take an active part
in the current and company’s relevant concerns in terms of society and politics. While doing
so, Porsche confirms that all the activities of the business adhere to the respective values,
agreements, and internal rules (MHP: A Porsche Company, 2019).
At the international level, Porsche Company offers material as well as financial assistance to
different non-profit institutions and enterprises and is also support education cooperation.
Porsche Company provides support to the sporting and cultural activities through sponsorship
and donations in the transparent procedure. The brand is the main sponsor of the Gewandhaus
Orchestra since 2011. In addition to this, since 2012, it is also highly engaged in the premium
partnership with globally famous Stuttgart Ballet Company. The company also take interest
in the sports sponsorship, as for Porsche Tennis Grand Prix, the company is the title sponsor
(Porsche, 2019e).
Porsche also gives priority to resource and environmental protection. Company has built and
follows clear guidelines for the environment protection since 1995. The company has a
separate department of environmental management which is responsible for setting up
different energy and environmental management systems at all the locations where it operates
its business. Some of the social responsibility initiatives undertaken by Porsche are:
The "Empowering the Future" is one of the initiatives of Porsche which started in the year
2008 with the purpose of supporting people that were injured and effect by the Wenchuan
earthquake. Porsche provides its major contribution to UNICEF during the period of early

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recovery instantly after the earthquake. In fact, at the beginning of the project company
donated around 500,000 euro (Porsche, 2019f).
In the year 2009, Porsche again in collaboration with UNICEF, introduced the ground-
breaking Mobile Educational Training and Resource Unit program (METRU), with the
motive of carrying competent teaching coaches, library, teaching kits, sports equipment, and
student packs for youngsters living in the remote area. From that time, the collaboration
between Porsche and UNICEF has provided assistance all over four nations in Sichuan and
Gansu Provinces. The initial donation of the organizations was 10 million RMB along with
four Cayenne. In the year 2012, the program gained success with the enrolment of around
117,000 students and offered training programs to 7,800 teachers from around 435 schools. In
the year 2011, Porsche Company provided a further donation of over 4,948,762 RMB and
two more Cayenne SUVs, for extending its reach of support to Yunnan Province (Porsche,
2019f).
Furthermore, at a vocational education event, Porsche Company has signed the PEAP
agreement 2019 in collaboration with around 10 higher vocational schools, with the motive of
increasing the talent reserve of PEAP. In the last eight years, PEAP has successfully held the
cooperation contract with China’s 19 higher and middle vocational schools. This agreement
has till date nurtured a huger number of talents for industry and organizations (Porsche,
2019d).
Further Actions for Porsche Necessary for Meeting its Corporate Social Responsibility
Considering the commitment of Porsche for reducing CO2 emission, company is
recommended to come under the collaboration of the Kyoto protocol and follow the
guidelines for reducing the CO2 emission. The Kyoto Protocol is one of the international
treaties which are the extension of the United Nations Framework Convention on Climate

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Change 1992 that ask the member states to work towards reducing the emission of
greenhouse gas, depending on the scientific consensus (United Nations Climate Change,
2019). According to the protocol most of the emission is extracted from human activities
which have a harmful impact on people and the environment. This protocol is one of the most
effective treaties that encourage reducing emission. Therefore, the company is recommended
to get into contact with the Kyoto protocol.
As discussed above Porsche focuses on enhancing the teaching and education structure by
providing donations and support to different higher vocational schools. The company desires
to provide quality of educational training to youngsters living in the remote area through
Mobile Educational Training and Resource Unit program. This educational program has
gained success and provided huge support for the growth and development of remote region
people. In consideration of this, Porsche is recommended to expand its training and
educational program in the Asian market especially India for encouraging the benefits of
education and increasing competencies of the Asian population.
PESTLE Analysis
Political Force
The economic decline has raised a number of issues for the automobile dealers and
manufacturers particularly sports car. Few of the companies like Porsche are regularly putting
efforts to make fuel-efficient cars (Frue, 2019). However, there is some country's government
which are imposing strict regulations against automakers.
Economic Force
The industry of sports car has experienced a share of economic misery at the end of the 20th
century and due to which a number of companies experienced declining cash flows. Again, in
the year 2007, the economic downturn resulted in impacting different automakers in the

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industry. The prices of the oil increased to around $100 a barrel. Numerous businesses
became bankrupt, and the entire economy experienced the most destructive recession which
was spread at the global level. The rate of unemployment increased which resulted in making
customers price sensitive which negatively influenced the makers of sports car since they
were dealing with the stereotype of being a gas-guzzling automobile segment.
Social Force
The fans of sports care are few as well as unpredictable. These customers are trend sensible
and are majorly ask for high end and luxury brand. Because of their exclusive traits of
personality, they like to purchase a vehicle that could offer them more fun and excitement.
Where other vehicles mostly design affordable cars, but the fans of sports car majorly search
for design and performance (Frue, 2019). Porsche Company effectively targets this target
market by offering innovative design and high performance which excites the customer and
provide them an unforgettable experience. However, due to the limited target market, the
company is also involved in developing SUVs and Sweden under the sports luxury segment
in order to target different segments other than the sports segment.
Technological Force
Ongoing innovation is needed to outshine in the segment of sports car which in return
demands for highly advanced technologies. With the changing time technologies are getting
advanced at a fast pace which helps entire capital intensive industries and automobile
segment comprising sports car segment. Few of the companies such as Porsche have
successfully created a wealth of technological proficiency by themselves and also with the
support of its strategic partners. As it is known that advancement in the technology is
increasing at a fast speed, if the companies of sports car can build high-end technologies to
regularly innovate and provide services professionally, this will definitely provide positive
results to the entire industry.

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Legal Force
Few of the government are imposing strict rules for automakers and importers in order to
reduce environmental impact. For instance, the government of the United States was unhappy
with the increasing environmental concerns due to which it increased the burden and pressure
on the car makers. The requirement of mpg for each car in the United States was raised with
the implementation of the policy CAFÉ (Corporate Average Fuel Economy). According to
the policy, by 2020, CAFÉ commands, manufacturers and importers of the automobile to
have an average rating of at least 39 mpg for the cars and its defilement would lead to a high
penalty of around $35, 700 per violation (National Highway Traffic Safety Administration,
2019).
Environmental Force
Automobiles sector impacts the environment in different ways. The impact instigates at the
time when the vehicle produces and ends with a lot of scrappage. However, the major impact
of a sports car on the environment takes place when these cars are utilized by the customers.
In fact, there are many sports cars which are created to consume a high level of energy and
natural resources like gasoline. As these cars relatively consumers more fuel, its disposed
vehicle fluids could be unsafe for animals, human, and overall environment (Union of
Concerned Scientists, 2019). The increasing issues related to global warming, many
environmental conscious customers are increasing at a global level. Hence, if the
manufacturers of sports car did not adopt eco-friendly measures then it could result in
negative effects over the business.
Porter Five Force Analysis
The threat of New Entrant
The new entrant threat is low in the segment of the sports car because the entry barriers are
strict and ask for a higher investment of capital. Along with this, it requires strong research

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and development competencies and complete knowledge of the segment and advanced
technology.
Threat of Substitute
The substitute product threat in the sports car segment is low. Few of the rivals could be
considered as the substitute for Porsche like Ferrari, Aston Martin, Lamborghini, etc. But, all
these players offer different features and have a competitive advantage due to which they
could not be considered as a close substitute (The National academy of Sciences Engineering
Medicine, 2019).
Power of Buyer
The power of the buyer in the sports car segment is moderate. The loyal customer segment
covers a major part of the revenue. Due to the easy availability of information about price,
features, and quality, customers have some influence to negotiate.
Power of Supplier
The suppliers’ power of bargaining is moderate to low because this sports car segment is
comprised of a limited number of players and therefore suppliers have to compete with each
other to get the contract by reducing prices.
The competitive rivalry among existing players
Competition in the sports car segment is high. Established players like Lamborghini, BMW,
Ferrari, etc. compete in the market for revenue (Holweg, 2005).
SWOT Analysis
Strength
Brand image is one of the significant strength of Porsche because it supports the company in
gaining a major share in the market. The products of the company till date are considered

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elegant design, sturdy, and robust (Newsroom, 2018). The company has invested a huge
amount in engineering which allows it to produce a variety of cars to satisfy the need of
customers.
Weaknesses
In spite of the huge success of Porsche, the company has some weaknesses that need to be
focused by the management to improve. The automobile segment of Porsche is the major
consumer of fuel which results in increasing CO2 emission and negatively impacts the
environment.
Opportunities
The opportunity that is present is that the company could adopt environmentally friendly
technologies for production by manufacturing the right product with the use of advanced
technology. The company could produce an electric sports car with the same horsepower for
reducing the use of fuel.
Threats
The natural disasters are one of the threats for the company such as tornadoes and hurricanes.
These types of disasters impact the procedure of production and cause huge losses for the
company.
Ansoff Matrix
Ansoff Matrix is said to be a strategic planning tool that is used by the company's
management for making different growth strategies for the future. This tool is comprised of
four strategies also known as strategic options from which any of the strategies could be used
by the business like market penetration, product development, market development, and
diversification (Corporate Finance Institute, 2019).

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Market penetration
From the above analysis, it has been identified that Porsche is regularly getting involved in
the production of differentiated cars and putting efforts to reduce its CO2 emission in the
environment. However, in order to remain successful in the market, it is recommended that
the company must adopt the strategic option of market penetration. In this, a company in the
future will keep its existing strategy in the existing market, but it has to increase its
promotional activities of the brand such that a maximum number of knowledge about the
brand and purchase sports cars, SUVs and Sedan.
Conclusion
The above report has provided a detailed analysis of the current position of Porsche in the
automobile industry. The analysis highlights that the company has with time became one of
the leading sports car company which offer the most reliable and competitive cars to its
customers along with high performance and unforgettable experience. The company has
adopted positioning and differentiation strategies which have placed the brand in the eyes of
the customer and danger for other players in the market. The company has differentiated from
its rivals by not just producing sports car but also producing SUVs and Sedan. However, the
raising efforts of rivals and changing trend in the market, the report has suggested the
company to adopt market penetration strategy, under which the company needs to make the
aggressive promotion of the existing product in the existing market.

IMPLEMENTING STRATEGY 23
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IMPLEMENTING STRATEGY 24
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IMPLEMENTING STRATEGY 25
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IMPLEMENTING STRATEGY 26
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IMPLEMENTING STRATEGY 27
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