Posted at 10.07.2018
Skoda in a position to identify Brand Position was one of the weakness for Skoda in the highly competitive fragmented market by positioning the brand as low quality or poor vehicles which caused Skoda to get 1. 7% of the market share, because the company used to create automobiles of poor image of quality, design, assembly, and materials, which leaded customers to understand the brand image as poor image for bulk consumers compare to other competitors like Ford, Peugeot, and Renault. By looking business model, example General Electric business design that say business organisation can determine its do it yourself by looking factors like Business Talents (strong or average or poor) on the market and industry attractiveness (high or medium or low) at that market. Corresponding compared to that model that means the Skoda had probably fragile business strength and its own industry attractiveness was probably strong in the market.
The analysis offered clear path to Skoda that there surely is need to Relationship with Volkswagen by bringing up proper alliance between themselves which leaded the Skoda to change the negative image in the market. Also Skoda management do understood that they need to right old perceptions by stop being defensive in promotional campaigns and change market message as Skoda owners have to be happy and contented with the autos, Also convincing users that Skoda vehicles were great to own and drive.
Skoda researched through asking customers straight and using self-employed surveyors like JD vitality survey by examining customer's emotions through questionnaires. Skoda in a position to position its brand where there is a gap on the market place against their opponents because rivals they where centering in product it self.
Skoda partnership with Volkswagen AG helped the Skoda to gain internal strength due to combinations of skills and knowledge in both companies, also the Volkswagen offers good reputation on its business, Page 133 on the case study.
Satisfaction of its customer by business concentrating on owner experience, future proper development and marketing its brand image through developing to sales, satisfaction of their customer arrived after producing brand image which has received quality and happy to driver to own that brand, example of Top gear's 2007 customer satisfaction survey in 152 models visitors voted number 1 car maker and 2008 Octavia model triumphed in auto express drivers power best car, Skoda is aware 98% of its drivers would recommend Skoda to a friend, web page 133 - 134, on the case study. That shows the out come proof Skoda overcome the weakness and built the strength which leaded to opportunities.
Advantage through technology also was best durability for Skoda by using focusing strategy, as Michael Porter model of Competitive Edge (cost leadership, focused low cost, differentiation, centered differentiation) Skoda implemented the strategy of focused differentiation in market, organisation can take up a strategy to compete keenly against other competition, technology made Skoda to over come weakness and gain durability to opportunity by differentiate in unique advertising proposition through human touch designed of its brand car engines and focused on customer experience.
After careful evaluation Skoda able to addressed external hazards. One, Skoda UK was able to ensure that its information were powerful enough for customers to listen to within such a packed and competitive environment my using slogan of "the manufacturer of happy drivers" so they can able to maintain the market talk about. Skoda in a position to produced strong range of product in the UK and internationally such as; Skoda fabia sold as basic but quality car, Skoda superb as more luxurious and up market charm, the Skoda Octavia as house provides a family with a fun drive but also a great big shoe, all these brand were UK market sections. Web page 135 on the research study.
Pricing, Skoda listed all brands relating to model range that means Skoda seeking to gratify their customers matching to different teams within the main stream of the automobile market, Also blend of competitive prices and brand range gave advantage to get over the risks of other competitors.
EU Legal and Environmental laws made Skoda able to addressed the risks by using the benefit of technology to produce products which are environmental friendly at every stage with their life pattern. By producing Skoda products that they can recycle whenever you can and through identification of their parts which are marked quick and easy when the automobile taken apart, Using latest most green manufacturing technologies and facilities available, example use of lead free and drinking water based shades to paint areas to safeguard against corrosion, By building procedures that will lower fuel ingestion and emissions in petrol and diesel engines. Using lighter parts to make vehicles as aerodynamic as possible to make use of less energy. By creating automobiles with lower sound levels and improved upon sensible quality, Pg 135 on the case study.
SWOT identify Superiority of organisation on the market place, swot helps company to learn how best it is on the market place by looking example the brand image of the company in the market against other competitor's brands.
Also SWOT help determine Staff expertise, loyalty and commitment in the company. Example pg133 first paragraph, Skoda management they were looking a foreign spouse so company management can gain experience in Cars make.
SWOT help to build good reputation for service or quality, as in case research Skoda build durability by design autos with their own experience and brand image, pg 134.
SWOT also really helps to guide company in future strategic development which will bring benefit to organisation.
Technology adoption, helps company to change it operation by gaining advantages through technology which can reduce costs or improve creation.
Helps to give distance idea within market when organisation wants to position something or services in the new market.
Helps to comprehend customer needs by looking their belief on company's product in case product or services the business supplies to them are well get satisfied. Example on the research study of JD Ability study and Top Gear explained how management of Skoda determined their power of customer satisfaction to the marketplace place, Pg 133.
Helps to comprehend competitive activity, by looking other opponents available environment.
Helps organisation able to react for changes in administration rules or legislation, example in the event study Skoda in a position to respond to EU legal and environmental rules by producing products that are green at every stage of their life.
Also help to determine source demand, example shortage of recycleables.