Sport Utility Vehicle and Porsche

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1. Do you think Porsche had to go through the product market of cars and SUV? Did she have other options at the time described in the Case? Based on an analysis of advantages and disadvantages What would you recommend the same point in time?  We will use Porter's forces model to consider the attractiveness of the product market entry of vehicles - Luxury SUVs.  Existing competitors - most of the market share the SUV, the Porsche is in particular the United States. In 1998, there is fierce competition in the SUV in the U.S.. Beyond that, the more delicate segmentation of the product to market SUV Luxury cars, there is competition between the density of competitors. Total power of existing competitors is very high.

Suppliers - suppliers can be divided into two types of Porsche. The first type that supplies workers (Labor) and the other is external and parts manufacturing companies. The first type of power supplies working up to the geographic location of the factory workers' organizations that exist there. The second type of supplier power is weak enough that you can switch between suppliers easily. Vision to take the case where vendors positioned themselves near the vehicle companies factories (p. 7 paragraph 1). Total staff strength - depending on space, and comes as part of the consideration in choosing a plant. Total external production companies and power - low power - medium. Customers - customers love the brand Porsche identify it with quality and prestige. Also known from surveys that customers expect of a Porsche SUV car. Target customers are willing to pay in advance to get a brand identified with quality and prestige, while Porsche will provide a quality car, not much bargaining power customers. Total power of customers - low.

Substitute products - product substitution is a threat to SUV, is an increase trend of cost-effective small car consumes less fuel. It comes in a green trend, coupled with expectations of a rise in fuel prices could be a consideration to move from car-efficient SUV. However, we do not believe that the clientele of the Luxury SUV affected by intentional, that he had no financial problems, and aim luxury car is a statement. Total power of substitute products - low.

Potential competitors - the entry barriers to product market luxury SUV vehicles very difficult. First need to know, instrumentation engineering, experience, a high equity to a new company enter the field. Secondly, it is hard to believe that customers will buy luxury cars from a company with no experience and reputation, so the chances of a new company to enter the luxury car market is very low. So the main risk is the potential competitors are companies from later visits to that product market. Likely that companies that are market vehicles, but not the luxury cars market, is likely to rally, but the transition from a mass production company branded luxury brand, is not trivial. However, even here we must have a reputation for quality and prestige, build brand and therefore not suitable for large company for mass production of cars can enter the field. The companies are a threat because we've listed competitors already exist. Total power of potential competitors - is estimated very low.  After examining the Porter by market forces, more than can be wisely decide on the attractiveness of the product market is cars Luxury SUVs. Weighting the forces, we can see that there is such a risk at the entrance to the market, but entering the market the SUV, which is considered the most attractive industry, can lead to tremendous growth in profits and the ability to Porsche. The company can use this market as leverage business growth, which could also contribute to establishing its position also on Porsche's core business - luxury sports cars. In our opinion, as long as the Porsche will provide a luxurious SUV with car performance without compromising quality, product market is attractive.  Other alternatives that were to Porsche that point...
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