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Individual Case Analysis - Porsche

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Individual Case Analysis - Porsche
1) What are the most important general environment factors to be considered for the industry and the company and what is their effect (positive-negative-neutral)? What is your evidence for the importance of these factors?
• Technology – Neutral – Though Porsche is a high end car with a high desirability it is not a market leader in technology. It is not behind the market either. It does have very advanced engine and tractions systems, and Porsche’s patented Doppelkupplung, or double clutch. None of which is necessarily ground breaking. They did however purchase Volkswagen Groups and were able to acquire new technology which puts them at more of an advantage.
• Demographic – Positive - Porsche is a luxury brand and is dedicated to selling high end products to those with the means of purchasing it. Porsche has acquired the majority of Volkswagen Group to gain market share in the lower-end luxury brands as well and to synergy in its own brand. Even with the poor economy, Porsche is excelling in sales to the upper class.

2) What are the most important of the five industry forces affecting the industry and the company and what is their effect (high-moderate-low)? What is your evidence for the importance of these forces? Is the industry attractive for new entrants and incumbents?
• Intensity of Rivalry Amongst Competitors – High – There are numerous competitors of similar market size which increases rivalry. This is a slow growth industry which also puts pressure on rivalry along with little differentiation within the industry.
• Bargaining Power of Buyers – Low – The automotive industry is on its way back up but it is still not where Porsche wants it to be. In this industry there are many sellers and few buyers and the car industry has standardized products with little differentiation between competing products.

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