The paper "Generic Strategies and Performance– Evidence from Manufacturing Firms" Is a great example of a Marketing Case Study. Since its foundation in 1931, Porsche, founded by Dr. Ferdinand Porsche has shown consistent growth and perseverance towards prosperity. The Company is known for an outstanding strategy that has seen it transform from a one Section Company situated in Germany to a multi-company corporation with manufacturing various vehicle brands marketed across the planet currently branding the company as a multinational corporation (MNC). Dr. Porsche in the late 1920s spotted a niche in the vehicle and automobile manufacturing industry where he determined the market need of a more luxurious vehicle or car brand which even Volkswagen (VWG) Corporation did not provide (Heil et al 128).
To meet the emanating demand, Porsche settled on initiating a new vehicle company with his major project being the iconic 911 brand. The brand really attracted a significant section of the worldwide market especially Germany and countries within Europe which ideally assisted the company earns prestige catalyzing the organization’ s transformation within the shortest time possible. By keeping close to Volkswagen, Dr.
Ferdinand Porsche demonstrated a willingness to learn from competitors which is a key aspect of strategic sourcing and marketing (Schulz, Wolfgang and Mü ller 239-274). Dr. Ferdinand himself designed the Beetle which became one of the best selling brands from VWG Corporation ever since. They also made together Porsche Cayenne Volkswagen Touareg which became exceptional selling brands for the two companies as well. However, the take of Dr. Ferdinand to work that much close with its rival was questionable. The end of 2013 marked a successful year for Porsche Corporation having introduced two brands that are, Porsche 918 which is a Sports Utility Vehicle (SUV) priced at $ 750,000 and Porsche Macan priced at $48,000.
The idea of Porsche to develop 918 was highly informed by the increasing need of high-class cars to be used in sporting hence the need to strategize for it. By the end of 2014, Porsche had six-vehicle brands in the global market consisting of Cayman, 911, Cayenne, 918, Macan, and Panamera. Porsche, in 2012 devised the 2018 strategic plan which is expected to epitomize the general organizational goal.
It anticipates hitting annual sales of 200,000 cars by 2018. By 2012 the company was already selling an average of 150,000 cars annually with Macan accounting for a significant part of the sales for 50,000 (Heil et al 132). The company has set a strategy to hire at least 1000 plant workers and 200 engineers which are a perfect human resource strategy towards meeting the World’ s sport car needs and improving the 918 models. Problem With respect to Porter’ s Five Forces of Competition, it can be said that Porsche failed to recognize the objectives of competitors.
The company worked distinctively towards increasing the organization’ s profitability failing to recognize the impact of a competitor to the organization. The decision of Dr. Ferdinand to work closely with VWG Corporation did bring much detriment than benefit to Porsche incorporation. Mr. Ferdinand ended up giving out his idea on Beetle to Volkswagen leading to increased threats of substitutes. Beetle which was primarily his idea turned out to the bestselling brand for VWG up to date. If only Dr. Ferdinand could have used the idea to improve a brand in his company or devise a new brand altogether, the returns could have directly been channeled to the organization.
He failed to recognize competitor’ s strategy and when the relationship came to an abrupt halt, Porsche became unable to reach its objectives and in the long-run became heavily indebted as a result of a hostile takeover by VWG Corporation. This denied the incorporation of a chance to enhance product development, penetration strategy, and diversification strategy. Additionally, the idea of take-over by VWG was not well informed.
By 2012, VWG had bought 100% shares of Porsche making Porsche explicitly dependent on VWG.
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