The Current State of Skoda’s Business in the Uk

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Introduction

Skoda, as a car manufacturer with a long history, has become one of the companies of Volkswagen who is the largest vehicle manufacturer in Europe since 1991 (Volkswagen, 2012). There is a fast development of Skoda in recent years. Its deliveries to customers in 2011 increased by 15.3% compared to 2010 (Skoda, 2012).
This report aims to:
· evaluate the current situation of Skoda in the UK using the SWOT analysis.
· analyze the business environment of Skoda in the UK by using the PESTLE analysis in detail.
· create the possible strategies for Skoda’s future development based on the analysis.

Company Overview

With twenty years development supported by Volkswagen, Skoda achieved a new high record of sales for 45282 vehicles in the UK, which occupied over 5% of the whole sales volume of the brand. In the market of the UK, Skoda has launched seven models, namely Citigo, Fabia, Roomster, Rapid, Octavia, Superb and Yeti (Skoda, 2012).

SWOT analysis

Both strong and weak points of the business situation about Skoda in the UK can be seen in the SWOT analysis (see appendix I). The most obvious strength is the satisfaction provided to customers. Skoda has been doing good job on improving their products and services to meet customers’ demands. The company surveys their feelings and opinions directly to get the correct needs of customers. At the same time, some chances might be taken by Skoda to boost sales. Focusing on the vehicle itself as the marketing strategy, Skoda’s competitors leave the space to Skoda to focus on ‘happy Skoda customers’. It avoided the direct competition focusing on the product itself with other rivals and became the ‘unique selling proposition’ of Skoda in the vehicle market (Times, 2008).

In contrast, there are still some persistent weaknesses and threats of Skoda. One weak point, for example, is the negative effects from the ‘image of poor quality, design, assembly, and materials’ in the past. Although Skoda had

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