Porsche Business Model

Topics: Porsche, Porsche 911, Automotive industry Pages: 28 (10760 words) Published: December 4, 2012
The automotive market
The automotive market comprehends the design, the development, the manufacturing and the distribution of the vehicles. This market includes all kind of vehicles with motor, but only the ones of combustion engines. This is one of the markets that make the world economy grow, in fact the automotive market is the world’s most important economic sector by revenue. This market as sated above does only include the four main principles of the car market. It does not include businesses which cars about the customer after the delivery of the car, such as repairing firms or motor fuel filling stations. History of the market

The market was created by Karl Benz, he build the first petrol engine in 1885 Mannheim, Germany. This was basically the first combustion engine to be produced, and he was granted a patent at the end of 1886. This market, had been seen by having a huge potential for generating money, more people were convinced that it would be the actual future of the world as it could radically change the way people perceived transportation. The Economical Environment in the market

Now a days there are about 807 Million cars on the world, “consuming over 260 Billion US Gallons of gasoline and diesel fuel each year. This makes fuel a complementary good to automobiles, as if the number of automobiles decreases the number of gallons consumed will also decrease. However there has been an overall increasing production trend in the automotive industry for many years.

By looking at the table we can clearly see that the automotive market has been in constant growth for the last 15 years, even if there are some exceptions such as in 2008/09 which had a tremendous decrease in the total cars produced, this is due to the 2007 economic crisis which reflected in the car industry heavily 1 year later in 2009 which decreased production of 13.50 %, however in 2010 the car industry re-gained the production and increased at a 26%. This shows many things regarding the market, it basically shows how the people influence the demand of the product and how cars are not a recession proof product in the world. This makes estimates of production and supply very unforeseeable as to if an economic crisis rises the demand of the product will vary greatly. The production of the vehicles concerning demographics is really interesting, we can see that there is a continuous battle for the country which produces the most, this is because there is a demand for the product and therefore countries play in exporting their products. Until 2005 the United States was the leader in production, however there was an overtake of the production for only one year (2006). However then the growing economy of China had been announced and the production of vehicle in China was exactly like an economic bubble. It passed the United States and the Japanese economy, producing a total of 18.3 million units in 2010, doubling the production unit in Japan. Porsche in the Automobile Market

Porsche was founded by Ferdinand Porsche in 1931, the company started out as being a vehicle development and consulting firm, it did not actually build any cars in the name of the business. It began car production in 1939 launching their first Porsche called Porsche 64. This shows a perfect link to management, Porsche started up as a consulting firm for car development, however Ferdinand Porsche looked at the market and clearly saw an opportunity, this shows how from right to the beginning Porsche had to take decisions regarding the focus there were going to undertake and the road that they were going to choose. Clearly they choose to manufacture cars as we can see in these days

The perception of customers regarding Porsche
This is a very basic perception map, it basically describes how consumers perceive a product, and in this case how they perceive car manufacturing companies. We can...
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