...SKODA - CASE STUDY
This case study focuses on how Skoda UK's management built on all the areas of the strategic audit. The outcome of the SWOT analysis was a strategy for effective competition in the car industry.
The audit provided a summary of the business's overall strategic position by using a SWOT analysis. SWOT is an acronym which stands for:
* Strengths - the internal elements of the business that contribute to improvement and growth
* Weaknesses - the attributes that will hinder a business or make it vulnerable to failure
* Opportunities - the external conditions that could enable future growth
* Threats - the external factors which could negatively affect the business.
Skoda is a global brand offering a range of products in a highly competitive and fragmented market. The company must respond positively to internal and external issues to avoid losing sales and market share.
A SWOT analysis brings order and structure to otherwise random information. The SWOT model helps managers to look internally as well as externally. The information derived from the analysis gives direction to the strategy. It highlights the key internal weaknesses in a business, it focuses on strengths and it alerts managers to opportunities and threats.
Skoda was able to identify where it had strengths to compete. The structured review of internal and...
MARTINEZ, NILO C.
JURILLA, GUDIO B.
PEŇA, JOHN JONARELL
ENGR. RICARDO G. CAPULE JR.
Table of Contents
SKODA AUTOMOBILE COMPANY
In 1895 in Czechoslovakia, two keen cyclists, Vaclav Laurin and Vaclav Klement, designed and produced their own bicycle. Their business became Skoda in 1925.In 1991 Skoda became business partner of Volkswagen because of its reputation for strength.They become the largest car manufacturer in Europe providing an average of more than five million cars a year giving it a 12% share of the world car market.
b. MISSION / VISION STATEMENT
Skoda Auto mission is to anticipate consumer needs and provide safe, quality, reliable, and innovative automotive products and services to consumers around the world
A world leader in high- quality, value-priced automobiles for the 21st century consumers
c. IMPORTANT EVENTS, ISSUES AND ACTIVITIES
1895 - Vaclav Laurin and Vaclav Klemnet form bicycle company in Mlada Boleslav, Czechoslovakia
1901 - They began producing motorcycles and had a total workforce of 68 people
1905 - The first car they produced, called the “Voiturette A
1925 -The Laurin & Klement automobile factory merges with the Škoda machinery manufacturing company in Plzeň
1939 to 1945-During the war years, the factory focuses on...
...Car industry (Skoda and Volkswagen)
SkodaSkoda is a very well recognized global automotive industry, founded in 1895 in Czechoslovakia by Laurin and Klement. First started off as push bike designers now are lead to motor madness, designing not only cars, but trucks, buses, aeroplane engines and agricultural machinery. By 1990 onwards Skoda had a joint venture with Volkswagen becoming the fourth brand in the Volkswagen group, alongside Audi and Seat. Now with an amazing profit of $990 million and revenue of €8.5 billion, Skoda has gone from strength to strength, manufacturing many outstanding cars and many satisfied drivers.
Volkswagen which comes from the meaning ‘peoples car’ is a popular automotive car industry served worldwide, founded in 1937 Wolfsburg in Germany by Ferdinand Porsche and Robert Lev. The company started only producing a handful of cars, as by that time the World War 2 had started. However in the 1940’s the factory was producing 1,000 cars a month and sold the first two beetles during the 1950’s. Now with €10.9 billion of generated sales, and an operating profit of €1.2 billion, within the Volkswagen group, the company is going from strength to strength and will carry on bringing technical progress which benefit the people and can be implemented in harmony, with the environment.
Marketing communications are...
...Case 11- Skoda Auto-2007
The case on Skoda Auto is based on figures and stats taken in 2007. The case explains the past position of the company, the current state and the position of the company compared to other automobile companies in the world.
Skoda Auto Mobile Company was formed in 1895 in Czechoslovakia when Vaclav Laurin, a mechanic, and Vaclav Klemant, a bookseller, joined together to manufacture the bicycle later a motorcycle and then a four-wheel, 2-cylinder engine motor vehicle. Since then Skoda saw a lot of changes. It has improved its quality and has tried to change its perception in the minds of its clients.
Volkswagen a parent company of Skoda is Europe’s largest carmaker producing cars, trucks and vans. It has been able to grow its share in the markets of the world and from being the national car of Czechoslovakia it have become a multinational brand. Currently Skoda is being sold in more than 90 countries and is constantly improving its dealership and has penetrated in the markets of Western Europe, Eastern Europe and Asia. Skoda follows a German model for its corporate governance and Volkswagen is its sole shareholder. One of the key components of Skoda’s strategy is quality. Suppliers are selected in a systematic and controlled process. A key part of the integrated management system at Skoda is the quality...
...Case Study: Changing Customer Perceptions - Skoda Cars in the UK
In 1895 in Czechoslovakia, two keen cyclists, Vaclav Laurin and Vaclav Klement, designed and produced their own bicycle. Their business became Škoda in 1925. Škoda went on to manufacture cycles, cars, farm ploughs and airplanes in Eastern Europe. Today, Škoda UK sells Škoda cars through its network of independent franchised dealers.
The new Skoda Rapid for 2012
To improve its performance in the competitive car market, Škoda UK’s management needed to assess its brand positioning. Brand positioning means establishing a distinctive image for the brand compared to competing brands, so that the psychology of consumers is positively influenced towards Skoda rather than some other car brand. To aid its decision-making, Škoda UK obtained market research data from internal and external strategic audits. This enabled it to take advantage of new opportunities and respond to threats. The audit provided a summary of the business’s overall strategic position by using a SWOT analysis.
This case study focuses on how Škoda UK’s management built on all the areas of the strategic audit. The outcome of the SWOT analysis was a strategy for effective competition in the car industry, and allowed Skoda UK to successfully...
Entered Indian market in 2001 with launch of Skoda.
Audi and Volkswagen brands launched in 2007.
Two group companies – Volkswagen India & VGSIPL.
Volkswagen India – Volkswagen branded cars.
VGSIPL – Audi and Skoda.
Marketing strategy in India – Product, Place, Price, Promotion.
Caters mainly to luxury segment.
Higher price range – except Skoda Fabia.
Lack of brand awareness among Indian consumers.
Lack of aggressive marketing in earlier phases.
Lesser sales than BMW, Mercedez, etc (SIAM).
Lack of consumer knowledge – what Volkswagen stands for.
Perceived value v/s Perceived price – value line.
4 Ps OF MARKETING
15 different models under 3 brands.
Plant at Chakan, near Pune.
More assembly plans in India – competitive advantage.
Awards last year.
Targeted mainly for the luxury segment in the Indian market.
Plan to capture bigger market through the VW Polo.
Significant presence – number of dealerships and outlets across major cities.
Launched Integrated Marketing campaign in November, 2009.
Collaboration with DDB Mudra.
Evoke consumer awareness of VW as a brand.
Innovative promotional campaigns – OOH, print ads,TVCs.
Print media – Communicating benefits.
Television Commercials – Brand building.
Building brand image through innovative promotional campaigns.
Earlier example –...
The aim of this report is to illustrate the present situation of Skoda company in China car market and the world car market. By using SWOT analysis, describing Skoda had done a successful work in China. Evaluate the suitability of China as a foreign market for Skoda and it's product cars and Skoda may stay in China for more development. This will be assessed in the PESTEL analysis.
Two young men, Vaclav Laurin and Vaclav Klement, started to designed and produced bicycle in Czechoslovakia in 1895. 30 years later, the small factory became Skoda which went on to produced farm ploughs, cars, airplanes and bicycles in Eastern Europe. Between 1925 and 1990, Skoda overcame hard times which included war, political change and economic depression. The management of Skoda chose Volkswagen AG (VAG) as their strong foreign partner at 1990 and the reason was VAG has strong reputation, reliability and high quality. In addition, VAG is the largest car manufacturer in Europe, which taking 12% share at the world market by providing more than five million cars a year. Volkswagen AG comprises seven different car brands and each brand has its own specific character and is independent in the market. (SWOT ANALYSIS : SKODA, 2009)
❖ Skoda--Historical sales of world market
...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.
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...