Land Rover Brand Analysis and Strategies

This assignment analyzes the Land Rover brand, highlighting its challenges with reliability and after-sales service. It acknowledges the company's reputation despite past quality problems and recommends strategies to address these issues. The analysis emphasizes the importance of customer feedback, improved communication channels, enhanced vehicle reliability, and extended warranty options to strengthen Land Rover's position in the competitive automotive market.

Introduction:
The report assesses the internal and external environment analysis of an automotive company,
Land Rover. It is a leading car manufactures in the United Kingdom and exports its vehicles in
178 countries across the world. The report discusses growth of the global automotive sector and
market shares, growth and revenues gained by the company. What competitive advantage Land
Rover achieved over its competitors and global customer base of the company is also determined
and stated in the report. Though the company is leading car manufacturers but there are certain
issues with which company has been dealing from long period. Certain issues discussed in this
report are related to reliability of Land Rover’s vehicles, its fuel efficiency and fuel economy and
after sales services of Land Rover. Customers are finding it difficult to maintain the Land
Rover’s vehicles after its warranty period. Report also provides the recommendations to mitigate
these issues. The external environment of the company is analyzed through PESTLE, and five
forces analysis.
Overview:
The global automotive industry is experiencing boost from last two decades. It has been growing
continuously. Industry incorporated new technological advancement and innovations and new
markets have opened, according to the emerging trends (Jones, Smith and Hudson, 1999). While
considering the changes in the past paced environment and consistent innovative advancement,
automotive business model and the industry is subjected to rapid growth, disruption and change.

The chart shows active and excited buyouts of global automotive companies. At the starting of
21st century, Automotive Industry has come up to be an active sector. Let us talk about one of the
leading automotive organization which is being discussed in this report in Land Rover. It is one
of the leading British car manufacturing companies. Headquarter of Land Rover is situated in the
UK, and employed around 25,000 to 26,000 employees. The vehicles of the company are
manufactured across five different sites, and company further sells those vehicles into 178
countries across the world. Land Rover is highest value exporter in the UK, because around 80%
of its vehicles being sold abroad (Walters, 2007).
Growth:
The following chart shows growth rate of the Land Rover from Financial Year 2011 to Financial
Year 2016. The growth rate will be noticed through the annual global sales revenue of the Land
Rover. The sales revenues are shown in million British Pounds. There was continued growth in
revenue over this period and an increase of over 12 billion GBP between 2011 and 2016
(Hollebeek, 2016).

2011 2012 2013 2014 2015 2016
0
5,000
10,000
15,000
20,000
25,000
Series 1 23,456
Annual Sales revenue Growth of Land Rover
Revenues in million British Pounds
Figure: Annual Sales revenue growth of Land Rover
This statistic shows the monthly United Kingdom (UK) market share values for Jaguar Land
Rover between January 2014 and June 2016. Jaguar Land Rover is a subsidiary of Volkswagen.
Of the two sub-brands, Land Rover had the higher market share while Jaguar consistently held
less than one percent of the new car market, apart from in July 2015 when Jaguar's market share
reachet a peak of 1.34 percent.
Market Share:
The annual market share value of Land Rover between FY 2014 to FY 2016 is 25.13%, 31.36 %,
36.45% respectively. Land Rover is a subsidiary company of Volkswagen and it has two sub-
brand, Land Rover and Jaguar. Land Rover experience continuous high shares in market while
Jaguar held less than one percent in UK’s new car market.
Environmental Analysis
Five Forces Analysis

The Five forces analysis is used to analyse the factors which affect the organisation
internally and externally. There can be various aspects which affect the five forces model
for a Land Rover. For a brand like Land Rover it is important to study these factors
closely because these cars have specialise characteristic and the market share is niche
(Cougar, 1995). The five forces model describes the factors such as mentioned below
 Potential new entrant
Frankly speaking brand like Land Rover do not have threat of the new entrant because
Land Rover has been regarded as the British icon hence itself has a brand image. It is
very difficult for any other brand to come along with Land Rover. But if we talk about
the maintenance cost of Land Rover is very high hence other brands with reduced
maintenance cost can take up some market share (Shaw, 2005).
 Buyers
The customer buying behaviour is another factor which can affect the market share of
Land Rover. The maintenance cost of land rover is affordable only to a few people.
Hence when it comes to buying a car the customer always thinks about the maintenance
cost as well as the buying cost (Hollebeek, 2011). There are very limited group of
customers who come under this category. It is suggested that the Land Rover should also
manufacture cars with less buying cost as well as maintenance cost to increase their
market share and the other group of customers can experience the Land Rover.
 Suppliers

Suppliers plays an important role in car manufacturing industry. It is important to make
every part and chassis available at the manufacturing setup. Until now there have never
been a complaint regarding the suppliers point of view. But if we talk about maintenance
cost, it is very high. Once the warranty expires it becomes difficult to maintain the
vehicle because of the cost. Many complaints have been risen till now about the
maintenance cost. It is suggested that the Land Rover should act appropriately to reduce
the maintenance cost on one hand and increase the warranty period on the other hand.
 Substitutes
Many other companies like BMW, Ford, Porsche, Mercedes have come up with
alternatives for Land Rover. Customers are now looking forward for a substitute that is
cheaper and have less maintenance cost. Customers feel that once they buy a vehicle it is
important to stay with it and maintain it hence customers have started diverting
themselves for substitutes which can satisfy their needs as well as are easy to maintain
(Kotler, Keller, and Kevin, 2009). Car manufacturers like Land rover should study the
customers and act accordingly. They should work on factors which will help them not to
lose their market share.
 Industrial Competitors
Car manufacturing industry has been changing year on year. They are coming up with
solutions that will help them to gain the market share. Cars have become the need for
today’s customers. Hence presence in the industry is very important today. Presence will
help the companies to rise.
PESTEL
PESTEL analysis is something which is the Land Rover’s responsibility towards the
country and the government where they process and follow. It has become mandatory to
agree with all the compliance that the Land Rover put forth in front of the Land Rover.
 Political
Political Factors that can affect the Land Rover or the organisation. Political
factors that the government place on the Land Rover should be thoroughly
followed (Kotler and Clarke, 1987).

 Economical
How well is the economy of the country to satisfy the needs and the demands of
the Land Rover. Being economically strong should be one of the main objective
of Land Rover.
 Social
The Land Rover is how socially involved and participates in the welfare of the
society.Another way of gaining presence in the minds of the people and the
society is to participate in various welfare activities that happen for good of the
people.
 Technological
Technologically sound Land Rover and organisation helps to develop the Land
Rover internally and externally. Car manufacturers should ensure that they study
all the latest technologies
related to the industry and
apply them in their
manufacturing process.
 Environmental
Land Rover should ensure
that they do not harm the
environment with their
manufacturing processes.
Instead they should involve
themselves in improving the
environment and participate in programs that happen for environmental purpose
(Srivastava, 1995).
 Legal
Land Rover should accept all the terms and conditions that are set up by the
government. They should ensure that the Land Rover meets all the policies and
recommendations. Land Rover should meet all the compliances.
Industry life cycle

Industry life cycle is very like the human life cycle. This life cycle helps to
analyse the Land Rover in which stage it is in present. Every Land Rover and
organisation must pass through the same stages of the life cycle. There are four
stages of the industry life cycle as mentioned below
1. Introduction
Introduction stage is the stage when the Land Rover is just formed. Land
Rover was Founded in 1948 hence it has already
passed his introduction stage.
2. Growth
In this stage the Land Rover experiences growth
in the market, when its presence is felt in the
market and people talk about the brand. Land
Rover had many growth years where it gained its
market share in the market and developed itself
(Stanton, 1993).
3. Maturity
Maturity stage is the stage when the Land Rover reaches its breakeven point and
think about gaining profits in the business. Many companies reach their breakeven
point in the growth stage itself. Land Rover is one of those.
4. Decline
Decline is the stage when the Land Rover or the organisation experiences losses
and starts losing its market share. Land Rover should take appropriate steps and
ensure not to enter this stage at any cost and maintain its place in the market.
Competitors Analysis:
Though the company is leading brand in the UK but considering it global reach it has tough
competition from the brand of Japan and German companies. Comparing the luxurious facilities
in Land Rover, it’s tough competitors are German’s Audi, BMW and Merc. These companies
have competitive advantage of Land Rover with their Lexus features. The brand loyalty and
brand equity of these German and Japanese companies in terms of quality and reliability is

higher than Land Rovers. Hence, the company need to improve in these sections to achieve
competitive advantage over global competitors.
Recommendations:
Though it is a leading and well-established British brand but it has certain bugs and issues too.
There are constant complaints from customers about different models of Land Rovers and asking
about its reliability and after warranty services. Land Rover’s vehicle is difficult to maintain after
expiring its warranty. The Land Rover renaissance has come despite a legacy of quality problems
that has left its older models at the bottom of the J.D. Power reliability ratings for three-year-old
vehicles. Hence, this section recommends some strategies to mitigate these problems faced by
the company.
Firstly, it is recommended to improve the after-sales environment. In today’s competitive and
modern business environment, the best customer is the one you already have. Hence, the
company needs to improve its after sales service. Company can do it by asking regular feedbacks
from customers through surveys. Land Rover has to expand their communication channels
(mails, emails, brochures, point-of-sales material) to enhance communication with their current
customer which will help the company to gain brand and customer loyalty.
Second recommendation is regarding the reliability issue of Land Rover. The company should
need to rest its issues with reliability and fuel economy permanently and for that it needs to build
a solid foundation for future growth. To enhance the reliability of the vehicle company need to
make improvement in its fuel efficiency, and have to manufacture lighter vehicles. Despite of
this the vehicles should have longer base warranty and need to provide options for extended
warranties.
Conclusion:
In this competitive business environment, it is difficult to gain brand loyalty but sustaining the
image is more difficult task. German and Japanese manufacturing companies are giving tough
fight to Land Rover and these companies has large and loyal customer base. The strategic
management and external environment analysis of automotive company suggest to enhance the
strategic effort to gain competitive advantage over competitive. With regard to this context, the

report also recommend to improve the after sales services and after-sale environment of the
company. To improve the quality and reliability of the company is essential to sustain in this
competitive industry.
References
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Cougar , J.D. (1995) Creative Problem Solving and Opportunity Finding (Danvers, MA:
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Shaw, M.E. (2005)Group Dynamics: The Psychology of Small Group Behavior 2e (New
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