Porsche Case Analysis

Problems Currently, Porsche faces several types of problems. In particular, many customers of this company have become much more price-sensitive since they were affected by the global economic recession that began in 2008. Additionally, it should be kept in mind that the maintenance of sports cars is very expensive. Therefore, even many well-to-do clients may be reluctant to use the car models developed by Porsche.Advertising We will write a custom case study sample on Porsche Case Analysis specifically for you for only $16.05 $11/page Learn More This is one of the challenges that should not be disregarded. Secondly, the buyers are more willing to purchase fuel-efficient cars while the vehicles manufactured by Porsche consume higher amounts of gasoline. This issue is important because the governments of different states raise environmental performance standards that should be reached by automobile companies. These are the main issues that should be taken into account. Identification of alternatives and their evaluation The management of this company can take several steps. First of all, they can continue to position themselves as a manufacturer of luxury or prestige sports cars. This approach has been adopted by Porsche for a long time. In this way, they can retain the loyalty of clients who are committed to their products. Nevertheless, this strategy has limitations because the revenue of this organization can eventually diminish because it is not clear when the effects of global recession can be fully overcome. This is the main drawback that should not be disregarded. The second alternative is to develop a set of vehicles that may be purchased by people who represent various income levels. The main advantage of this strategy is that a company can attract a great number of potential clients. Furthermore, the profitability of this organization can increase. However, there are some weaknesses of this strategy. In particular, Porsche can lose its reputation of a produce that offers only high-quality vehicles. This is one of the pitfalls that should be avoided because it can endanger the long-term sustainability of the company. Proposed actions Under these circumstances, Porsche can take several steps. First of all, they need to increase the production of cross-over cars such as Cayenne since these models enjoy significant demand among prosperous clients. Secondly, they should launch the manufacturing of business class vehicles. Such an offering can appeal to various prosperous clients.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Finally, they should increase the fuel-efficiency of their models since it is critical for the competiveness of the organization. These are the main steps that should be taken. In this way, the company can better respond to current challenges which can be attributed to economic or poli tical environment as well as increased within the industry. The consequences of the propose actions The main advantage of the recommended strategy is that Porsche will be able to attract well-to-do clients who are not willing to purchase sports cars. In this way, a company can retain the reputation of a luxury brand and increase their customer base. This is one of the main issues that can be made. Moreover, the management of Porsche should remember that clients usually pay more attention to the environmental performance of vehicles. This is why they need to focus more on the fuel efficiency of their cars. Moreover, this strategy is critical for meeting the requirements set by the governments of various countries. These are the main aspects that should be taken into account. This case study on Porsche Case Analysis was written and submitted by user Felipe Nash to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.