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How to be a Leader On the Car Luxury Market (case study of Porsche company in Spain).

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I. Luxury Car Analysis


II Importance of the Porsche Company (brand value and key data of the company).


III. External Analysis of the Porsche Company.


3.1. Industry Analysis competitors of the Porsche, Ferrari, Astin Martin, Audi, BMW


3.2. Industry Trends


3.3. Analysis of the Market Segments


IV. Internal Analysis.


4.1. SWOT


4.2. Targets of the Porsche Company


4.3. Positioning Map


4.4. Marketing and Management







At present time luxury cars are getting the height of their fame. The reasons are different the prestige, the desire not to be a black sheep in the smart set, the wish to take up with the time. The manufactures of the luxury cars propose the wide range of kitting, colours and models for every even hard-to-pleased customer. The matter is what model and what producer to choose. According to the market search the most asked-for producer is Audi and Mercedes – Benz that follows it. The reason is simple the producers of Audi cars, which are the mass-market cars, have designed the luxury cars for rich people, Mercedes – Benz in its turn has won the worldwide popularity for its quality and service. And what about others? It is not a secret that there are a wide range of so-called luxury cars manufactures, some of them are individuals some of them are the subdivision of imperial groups. Among all of above mentioned manufactures Porsche company is a dark horse. Everybody knows the brand, the image, the quality and the high price, but can anybody tell the origin of popularity, which the company has achieved? To our way of thinking it is the stumbling block. So nobody know, but everybody wants, what is the reason for it?

That is why the aim of the work is to examine the way of how to become a leader on the car luxury market. According to the aim the following tasks were formulated:

  • to analyze the luxury car industry and brands presented on the market;
  • to characterize the importance of the Porsche Company, it’s brand value and key data;
  • to make external analysis of the Porsche Company, that is to present comparative analysis of the Porsche, Ferrari and Aston Martin Industry, to examine industry Trends and to analyze the market segments;
  • to make internal analysis, that is to dwell upon SWOT and to describe the main targets of the Porsche Company, to propose the positioning map and to explain the marketing and management structure of the company.


Coming to conclusion it should be stressed that it will not be easy for Porsche to establish and sustain a good market position in Spain with the current production capabilities, rivalry levels, limited differentiation possibilities and established sedan brands (many of which also have a solid brand image such as Mercedes, BMW, Audi, VW, Maserati, Jaguar, Lexus, and others). The profit margins of the luxury sedan class cars are higher than that of lower- and middle- class sedans. This is more in-line with Porsche’s high-margin strategy and the only potential place Porsche could enter.

Nowadays Porsche is in a strong position to expand its product line. But still the company doesn’t want to enter sedan market in the nearest future. While it is likely that a Porsche mass sedan will be sold well in the short term, there is a significant long term risk of diluting brand identity and alienating core customers. Moreover, an entry into the market of mass cars will not be sustainable in the long term due to powerful competition and Porsche’s limited resources. Nevertheless the company is thinking over the other ways to expand the product line while staying closer to Porsche’s core market. For example, the members of the Executive Board of Management are thinking about creating a coupe based on GT (does not rival VW, Audi) after Carrera GT production ends in 3-4 years and introduction of the model to the market of Spain. Furthermore Porsche should think whether it is possible and lucrative to diversify geographically and exploit successfully on the growing market of Spain. Positioning on the market of this country might include introduction of new product line to fully capitalize on market potential. So as we see being the conservative company Porsche in business follows its own commercial: “Change does not always require new ideas, sometimes ideas only require a little change.”


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