Implementing Strategy in Marketing

Marketing-
Implementing
Strategy
P o r s c h e
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IMPLEMENTING STRATEGY 1
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

IMPLEMENTING STRATEGY 2
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

IMPLEMENTING STRATEGY 3
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.

IMPLEMENTING STRATEGY 4
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.

IMPLEMENTING STRATEGY 5
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