Porsche Essay

1. The take away of this fable is that the farmer was greedy and wanted to get rich fast. It ended up hurting him because he killed the goose that was producing the golden eggs. I don’t necessarily think that Porsche is killing the golden goose because they gathered their largest profit from their 911 models and transformed them into newer models like SUV’s and 4-door sedans without losing their main focus on their sport vehicles and sport brand. Most of Porsche’s sales come from the Cayenne and Macan models while still selling a high number of other models like the Panamera and the 911. The Porsche brand flourished because they followed and adapted to the changing demands of the market to then satisfy their loyal customers. Although some

It is harder to be more of a differentiator. Differentiation is when a company provides a unique product and/or service to its customers. A focused differentiation is when a company offers products and/or services to a specific set of customers while a broad differentiation is opposite and has more of a broad set of customers. The risks of inheriting a broad strategic position are: 1. Customers might not like the changes of the newer models and might not relate to the brand that they have known. 2. Competitors in the industry might be able to imitate newer models such as the SUV’s and the sedans. However, benefits of this strategic position might include and increase in their customer base and create an increase in their profit margin. In addition, they will be satisfying their customer’s needs and demands while expanding in the car market. Also, with Porsche introducing new models, it has changed its strategy from a focused differentiator to a broad differentiator. As a fan of Porsche, I think they will be successful since they have a brand with loyal customers. And for the most part, others who like SUVs and sedans can join the brand and get just as much enjoyment as the Porsche sport car lovers. This increases the number of potential customers to join the Porsche brand who will then experience Porsche’s quality and

Volkswagen is pursing the horizontal diversification, which can offer various models for different markets and customers. Corporate level strategy is a strategic plan to gain a competitive advantage by acquiring a number of businesses from various markets. This strategy is powerful in attracting customers from the wealthy that buy luxurious automobiles like Porsche, Lexus, and Mercedes. Volkswagen has obtained more in market shares and sales volume and net income due to their ability to attract more customers to their brand modeling. Additionally, Volkswagen can produce a reduction of competition by diversifying its models to different market shares. By doing this, it will help keep their brands from competing with each other in the future. Volkswagen disadvantages come from increased risks, losing focus of each division of its portfolio, and the reduction in flexibility. Because they cover different markets, Volkswagen will suffer risks from every market. Since they have a broad portfolio, it will be hard to change and get rid of the unsuccessful companies due to the extraordinary exist costs. Like the case stated, if this scenario happens, it can lose its focus on each of its portfolio’s division. With so many strategies, Volkswagen cannot always distinguish what is right for their company and