Skoda Case Study

Topics: Škoda Auto, Automotive industry, Volkswagen Pages: 3 (890 words) Published: February 10, 2011
SKODA Case Study
SKODA is a car manufacturer originated from Czech Republic and it was established since 1895. Regrettably, to say, they were not doing well at all when they were under the Soviet Union and it was at 1991 when they have their turnover opportunity, which soon became reality when Volkswagen bought 31% of the stakes, soon increases to 70% in 1995 and fully owned in 2000 after they bought the remaining shares from the Czech government. SKODA became the fourth branch company of the Volkswagen group after VW, Audi and Seat.

SWOT Analysis:

1. Good reputation according to 98% of their customers and under Volkswagen group 2. Emphasize on customer’s satisfaction such as having customer’s survey 3. Won various awards for car model such as from AUTO Express, Top Gear, JD Power and Caravan Club since 2000 to present 4. Awarded for ISO certificates on Quality Management Standard and Environmental Management Standard| 1. Low market share in UK with only 1.7% compared with Honda 4.29%, 2. Out-dated perception of the brand compared to Ford, Peugeot and Renault 3. Weak brand awareness/identity in other countries such as Malaysia 4. Lack of innovation such as the SUV was a trend in 90s but SKODA comes up with its own SUV Yeti in 2009| 1. Going-Green trend in drivers(Focus on environmental friendly car), SKODA is implementing SKODA Greenline 2. More market opportunities such as in China(Increase public awareness) 3. SKODA is in growing stage due to accomplishments such as their sales volume is increasing from 2000 to 2010| 1. Competitors such as Ford, Honda, Toyota, and Nissan has more variety of product range 2. Recession causes purchasing power to decrease 3. Accessibility to SKODA spare parts is expensive 4. Environmental Constraint(Security issues)|

Financial Conditions:
The financial conditions of SKODA from 2000 to 2003 profit of the year are decreasing. This is because when...
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