Skoda Case Study Example | Topics and Well Written Essays - 1000 words

Skoda - Case Study Example Volkswagen's experience assisted in fixing most of the mechanical problems that Skoda had initially experienced. Skoda UK sells Skoda cars through its network of independent franchised dealers and its most current popular models are the frabia, octavia, superb and the roomster. Its' market share is at 1.7% making it a very small player in the market for cars (The times 100 134). However it has managed to fit in the highly competitive market and fragmented market. It attributes this on it's concentration on owners experience rather than making large sales. It has regarded 'the human touch' from design through to sale. One of its identifiable and quantifiable strength is the willingness and ability of the Skoda's driver to recommend Skoda to a friend. It utilizes this strength to market its brand image as well as laying plans for future strategic development. According to the audit report in the times 100 (134), Skoda faced a crisis due to the oudated perception of the brand. The car had an image of low quality, design, materials and assembly which negatively affected its owners. This is due to the fact that people associated car ownership to the image. In 1999, Skoda managed to change its negative image and Skoda cars were no longer considered of low quality. Despite its effort of improving its image, the vehicle did not have a strong appeal ot the public. Analysis of case To improve its performance in the competitive car market, Skoda UK's management needed to assess its brand positioning. Brand positioning means establishing a distinctive image for the brand compared to competing brands. Its by so doing that it would manage to grow from a small player to a bigger player. From the audit report it obtained after a market research, Skoda UK was put into a good positionto take advantage of new opportunities and respond to threats. According to JD Power survey, Skoda has been in the top five car manufacturers for the past thirteen years. In Top Gear's 2007 customer satisfactionsurvey, 56,000 viewers gave their opinions on 152 models and Skoda was voted as the number 1 car maker (The Times 100 134). Skoda's Octavia model aloso won the 2008 Auto Express Driver Power best car. Skoda attributes the results to its strategic management strategy which foccused on building cars that their owners would enjoy. This was different from simply maximising sales of a product. Strategic management is a process in whih it guides a business so that it can compete and grow in its market. According to the Audit report provided, Skoda has a 1.7% market share making it a small player in the market for cars. The weakness was partly due to outdated perceptions of the brand. This can be attributed to its poor marketing strategies that it used. The company should have therefore focused on improving its image to improve the clientele base. Recommendations Skoda should focuss on the Niche segment by developing a B plus or economical cars which are financially friendly to customers earning below 3000 RMB. This is due to the fact that, most customers are not in a position to afford the car at its current price. It is therefore advisable that, the company considers the low income earners by developing and producing economical cars. Skoda should also