SWOT Analysis in action Skoda
After began an industrial revolution from England in late18 century most of Europeans and some other countries socially and economically changed. Such as they shift from home-based hand manufacturing to large-scale factory production. As a result of that people were moved to use of iron and steel, new energy sources, the invention of new machines that increased production. As well as this was mainly caused to continue the transports and communication sectors. Eventually there were certain values in the automobile industry. (Answer.com/03-02-10). That has got a rapid development; Such as land rover, jaguar from England and Audi from Germany were made fast as a result of the great industrial revolution.
Two cyclists named Vaclav Klement; Vaclav Lourin started to make their own bicycle industry in the year 1895 whose country was Czechoslovakia from the Eastern Europe. Then they were succeeded to develop their industry by making cars, farm ploughs and air planes. They made a brand name for this multiple industry; “Skoda” one of the great invent of these cyclists. Nevertheless from 1925 to 1990 they couldn’t be successful because of political changes, war, economical depressions. (www.skoda.co.uk/03-02-10) As a matter of fact they decided to merge with Volkswagen AG (VAG) came from Germany which has got the biggest manufacture of Europe for their products included Volkswagen, Audi, Skoda, CEAT, Lamborghini,bently and Bugatti. However in this report I am going to analyse and illustrate about Skoda automobiles case study from “The Times 100”.
1. According to the case study the key weaknesses that SKODA UK was able to identify through the SWOT analyse can be explained as follows;
* Recently Skoda has 1.7 market shares in the world car market. So that it’s not enough to fit into highly competitive fragmented market. Because Mercedes Benz, Ford, BMW and other high branded products has succeeded in the car market.
* Skoda doesn’t have a good brand image about their products. Because customers think that their brands are out-dated perceptions as customers think that their products contain poor vehicle quality, assembly, design and materials.
2. Skoda did use enough strength to turn its brands weakness into an opportunity as bellows;
* They started to make some products with differentiation according to the market as they have realized what the customer wants. Because they have got to know that there is a gap among their competitors. So that they have created a slogan named “The manufacturer of happy drivers”. (www.skoda.co.uk/03-02-10). The reason why they have created that slogan; they haven’t promoted their brand itself like their competitors but they do promote the customer experience what the customer needs.
* They have decided to design cars with various ranges for the proper market segments. For instant;
Ø The Skoda Fabio is sold as a basic but quality “city car”
Ø The Skoda Superb offers a more luxurious, “up market appeal”
Ø The Skoda Octavia Estate provides a family with fun drive but also a great big boot.
· Considering with other products they introduced quality budget cars when comparing with their competitors. They have a good combination when we considering about their ranges of the car market.
· Their products lifecycles every steps are environmental friendly. This is mainly caused to increase their customer mind’s brand image and accurate EU legal procedures. For example;
v Their cars don’t make much noise because they have created those with improved sound quality.
v They used to recycle their products as much as possible.
v They are using the latest most environmental-friendly manufacturing technologies for their manufacturing process.
v Their cars don’t use much fuel according to the efficiency of those machines. So that the efficiency of those machines are exquisite when we considering about using fuel for them.
3. The Skoda has identified some external threats such as.
· According to the case study the main threat that Skoda facing is market competition come from their competitors. For instant if competitor launching cheaper and good quality products for the market. As an example 50 car makers active in UK car market. 2000 model selections have for the customers. So Skoda should active effectually to wining their market share from others.
· EU legal and environmental regulations also put extra preacher for the Skoda. As a resalt of that they should spend more money for their product life cycle rather than their competitors. Because they using environmental- friendly technologies and facilities are always more costly than others. Not only environmental regulation but also other legal rules also reason to increase production cost. Such as labours minimum wages, welfare, working hours, government taxations etc…
4. According to my personal point of view about SWOT analyse, it is an enormously useful tool for any kind of organization. Because it has been facilitated for management to understand and decision- making for all sorts of situations. The SWOT analyses provide very clear pitcher to organizational internal strengths, weaknesses, opportunities, threats for management. Swot analyse is scheduled to know how acts the internal factors for a business. Because internal influences are some factors which preceded a business for the success. As they can obtain competitive advantages. Product differentiation and cost leadership are known as competitive advantages. In the other hand SWOT analyses can be used inside a business in different ways to gain different perspectives. Such as ; (Robson W. /1997) (www.tutor2u. Net/2010).
* The way how they contribute their sales.
* Making an unbreakable partnership.
* Finding an alternative way to change the supplier.
* Adding some investment opportunities.
* How to launch for the new market and also how they use their business ideas for the improvement and success of their business.
In the view of the above report the SWOT analyses can be explained as a compulsory tool for the modern business world. I said so because this is the unique tool and the only way that helps to create a perfect internal environment.
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Ø Www.skoda.co.uk/ About Skoda/ [online] Availble From http://www.skoda.co.uk/aboutskoda.aspx
Ø www.tutor2u. Net , Strategy- competitive advantage [online], Available From http://tutor2u.net/business/strategy/competitive_advantage.htm
Ø Quick MBA , [1999-2007], Strategic Management [online] Available From http://www.quickmba.com/strategy/swot/
Ø Rugman A., Collinson S. , , International Business (4th Edition), Financial Times ,Prentice Hall , London ,UK