Porsche Case Study

There are a variety of challenges that firms may face when attempting to be the best in their specified industry. Economic and political challenges can make it difficult for companies to maintain a competitive advantage. In addition to maintaining a competitive advantage, some firms also find difficulty in keeping its branding alive and by attracting customers as their strategies, products, and management change over the course of time. Industries such as the automotive industry, healthcare industry, retail industry, and many more experience a variety of challenges based on their competition. Firms must create successful strategies in order to maintain competitive with their competition and in order to gain advantages in their industry (Hitt, 2013).

Porsche, for example, had been faced with its fair share of challenges when they faced a financial crisis in 2008 which led to VW Auto Group taking control of the Porsche brand in 2010 (Hitt, 2013). Shortly thereafter, Matthias Mueller became Porsche’s new CEO and shared his mission of successfully having Porsche join into the VW family, broaden

Organizations with competitive rivalry aim to gain advantages over their competitors and often use competitive behavior which consists of competitive actions and responses (Hitt, 2013). The results are competitive dynamics which consist of competitive acts and responses by competing firms in the industry (Hitt, 2013). One of the main benefits of being competitive is that it often results in economic growth (Martin, 2014). It is also believed that competitive rivalry has an influence over a firm’s performance as well (GIBB, 2010). Porsche consistently makes effort to improve their quality and to work towards providing a wider variety of sports car options in the