SWOT ANALYSIS : SKODA

introduction
In 1895 in Czechoslovakia, two keen cyclists, Vaclav Laurin and Vaclav Klement, designed and
produced their own bicycle. Their business became Skoda in 1925. Skoda went on to
manuIacture cycles, cars, Iarm ploughs and airplanes in Eastern Europe. A koda overcame hard
times over the next 65 years. These included war, economic depression and political change.
By 1990 the Czech management oI Skoda was looking Ior a strong Ioreign partner. Volkswagen
AG (VAG) was chosen because oI its reputation Ior strength, quality and reliability. It is the
largest car manuIacturer in Europe providing an average oI more than Iive million cars a year
t' giving it a 12 share oI the world car market.
Volkswagen AG comprises the Volkswagen, Audi, Skoda, SEAT, Volkswagen Commercial
Vehicles, Lamborghini, Bentley and Bugatti brands. Each brand has its own speciIic character
and is independent in the market. Skoda UK sells A koda cars through its network oI
independent Iranchised dealers.
To improve its perIormance in the competitive car market, Skoda UKts management needed
to assess its brand positioning. Brand positioning means establishing a distinctive image Ior the
brand compared to competing brands. Only then could it grow Irom being a small player. To aid
its decision-making, Skoda UK obtained market research data Irom internal and external
strategic audits. This enabled it to take advantage oI new opportunities and respond to threats.
The audit provided a summary oI the businessts overall strategic position by using a SWOT
analysis. SWOT is an acronym which stands Ior:
O Strengths t' the internal elements oI the business that contribute to improvement and
growth
O Weaknesses t' the attributes that will hinder a business or make it vulnerable to Iailure
O Opportunities t' the external conditions that could enable Iuture growth
O Threats t' the external Iactors which could negatively aIIect the business.
This case study Iocuses on how Skoda UKts management built on all the areas oI the
strategic audit. The outcome oI the SWOT analysis was a strategy Ior eIIective competition in
the car industry.
Strengths
To identiIy its strengths, Skoda UK carried out research. It asked customers directly Ior their
opinions about its cars. It also used reliable independent surveys that tested customerst
Ieelings. For example, the annual JD Power customer satisIaction survey asks owners what they
Ieel about cars they have owned Ior at least six months. JD Power surveys almost 20,000 car
owners using detailed questionnaires. Skoda has been in the top Iive manuIacturers in this survey
Ior the past 13 years.
In Top Gearts 2007 customer satisIaction survey, 56,000 viewers gave their opinions on 152
models and voted Skoda the t`number 1 car makert.
Skodats Octavia model has also won the 2008 Auto Express Driver Power t`Best Cart.
Skoda attributes these results to the business concentrating on owner experience rather than on
sales. It has considered t`the human toucht Irom design through to sale. Skoda knows that
98 oI its drivers would recommend Skoda to a Iriend. This is a clearly identiIiable and
quantiIiable strength. Skoda uses this to guide its Iuture strategic development and marketing oI
its brand image.
Strategic management guides a business so that it can compete and grow in its market. Skoda
adopted a strategy Iocused on building cars that their owners would enjoy. This is diIIerent Irom
simply maximising sales oI a product. As a result, Skodats biggest strength was the
satisIaction oI its customers. This means the brand is associated with a quality product and happy
customers.
Weaknesses
A SWOT analysis identiIies areas oI weakness inside the business. Skoda UKts analysis
showed that in order to grow it needed to address key questions about the brand position. Skoda
has only 1.7 market share. This made it a very small player in the market Ior cars. The main
issue it needed to address was: how did Skoda Iit into this highly competitive, Iragmented
market?
Perceptions of the brand
This weakness was partly due to out-dated perceptions oI the brand. These related to Skodats
eastern European origins. In the past the cars had an image oI poor vehicle quality, design,
assembly and materials. Crucially, this poor perception also aIIected Skoda owners. For many
people, car ownership is all about image. II you are a Skoda driver, what do other people think?
From 1999 onwards, under Volkswagen AG ownership, Skoda changed this negative image.
Skoda cars were no longer seen as low-budget or low quality. However, a brand t`health
checkt in 2006 showed that Skoda still had a weak and neutral image in the mid-market
range it occupies, compared to other players in this area, Ior example, Ford, Peugeot and
Renault. This meant that whilst the brand no longer had a poor image, it did not have a strong
appeal either.
Change of direction
This understanding showed Skoda in which direction it needed to go. It needed to stop being
deIensive in promotional campaigns. The company had sought to correct old perceptions and
demonstrate what Skoda cars were not. It realised it was now time to say what the brand does
stand Ior.
The marketing message Ior the change was simple: Skoda owners were known to be happy and
contented with their cars.
The car-buying public and the car industry as a whole needed convincing that Skoda cars were
great to own and drive.
Opportunities and threats
Opportunities
Opportunities occur in the external environment oI a business. These include Ior example, gaps
in the market Ior new products or services. In analysing the external market, Skoda noted that its
competitorst marketing approaches Iocused on the product itselI. Many brands place
emphasis on the machine and the driving experience:
O Audi emphasises the technology through its strapline, t`Vorsprung Durch Technikt
(t`advantage through technologyt).
O BMW promotes t`the ultimate driving machinet.
A koda UK discovered that its customers loved their cars more than owners oI competitor
brands, such as Renault or Ford.
Differentiation
InIormation Irom the SWOT analysis helped Skoda to diIIerentiate its product range. Having a
complete understanding oI the brandts weaknesses allowed it to develop a strategy to
strengthen the brand and take advantage oI the opportunities in the market.
It Iocused on its existing strengths and provided cars Iocused on the customer experience. The
Iocus on t`happy Skoda customerst is an opportunity. It enables A koda to diIIerentiate the
Skoda brand to make it stand out Irom the competition. This is Skodats unique selling
proposition (USP) in the motor industry.
Threats
Threats come Irom outside oI a business. These involve Ior example, a competitor launching
cheaper products. A careIul analysis oI the nature, source and likelihood oI these threats is a key
part oI the SWOT process.
The UK car market includes 50 diIIerent car makers selling 200 models. Within these there are
over 2,000 model derivatives. Skoda UK needed to ensure that its messages were powerIul
enough Ior customers to hear within such a crowded and competitive environment. II not,
potential buyers would overlook Skoda. This posed the threat oI a Iurther loss oI market share.
Skoda needed a strong product range to compete in the UK and globally.
In the UK the Skoda brand is represented by seven diIIerent cars. Each one is designed to appeal
to diIIerent market segments. For example:
O the Skoda Fabia is sold as a basic but quality t`city cart
O the Skoda Superb oIIers a more luxurious, t`up-markett appeal
O the Skoda Octavia Estate provides a Iamily with a Iun drive but also a great big boot.
Pricing reIlects the competitive nature oI Skodats market. Each model range is priced to
appeal to diIIerent groups within the mainstream car market. The combination oI a clear range
with competitive pricing has overcome the threat oI the crowded market.
nvironmental constraints
The Iollowing example illustrates how Skoda responded to another oI its threats, namely, the
need to respond to EU legal and environmental regulations. Skoda responded by designing
products that are environmentally Iriendly at every stage oI their liIe cycle. For example:-
O recycling as much as possible. Skoda parts are marked Ior quick and easy identiIication
when the car is taken apart
O using the latest, most environmentally-Iriendly manuIacturing technologies and Iacilities
available. For instance, painting areas to protect against corrosion use lead-Iree, water
based colours.
O designing processes to cut Iuel consumption and emissions in petrol and diesel engines.
These use lighter parts making vehicles as aerodynamic as possible to use less energy.
O using technology to design cars with lower noise levels and improved sound quality.
Outcomes and benefits of SWOT analysis
Skoda UKts SWOT analysis answered some key questions. It discovered that:
O Skoda car owners were happy about owning a Skoda
O the brand was no longer seen as a poorer version oI competitorst cars.
However:
O the brand was still very much within a niche market
O a change in public perception was vital Ior Skoda to compete and increase its market
share oI the mainstream car market.
The challenge was how to build on this and develop the brand so that it was viewed positively. It
required a whole new marketing strategy.
&nique selling proposition
Skoda UK has responded with a new marketing strategy based on the conIident slogan, t`the
manuIacturer oI happy drivers.t
The campaignts promotional activities support the new brand position. The key messages Ior
the campaign Iocus on the t`happyt customer experience and appeal at an emotional rather
than a practical level. The campaign includes:
O the t`Fabia Caket TV advert. This showed that the car was t`Iull oI lovely
stuIIt with the happy music (t`Favourite thingst) in the background.
O an improved and redesigned website which is easy and Iun to use. This is to appeal to a
young audience. It embodies the message t`experience the happiness oI Skoda
onlinet.
Customers are able to book test drives and order brochures online. The result is that potential
customers will Ieel a Skoda is not only a reliable and sensible car to own, it is also t`lovelyt
to own.
Analysing the external opportunities and threats allows Skoda UK to pinpoint precisely how it
should target its marketing messages. No other market player has t`driver happinesst as its
USP. By building on the understanding derived Irom the SWOT, A koda UK has given new
impetus to its campaign. At the same time, the campaign has addressed the threat oI external
competition by setting Skoda apart Irom its rivals.
Conclusion
Skoda is a global brand oIIering a range oI products in a highly competitivemarket. The
company must respond positively to internal and external issues to avoid losing sales and market
share. and Iragmented
A SWOT analysis brings order and structure to otherwise random inIormation.
The SWOT model helps managers to look internally as well as externally. The inIormation
derived Irom the analysis gives direction to the strategy. It highlights the key internal weaknesses
in a business, it Iocuses on strengths and it alerts managers to opportunities and threats.
Skoda was able to identiIy where it had strengths to compete. The structured review oI internal
and external Iactors helped transIorm Skoda UKts strategic direction.
The case study shows how Skoda UK transIormed its brand image in the eyes oI potential
customers and build its competitive edge over rivals. By developing a marketing strategy playing
on clearly identiIied strengths oI customer happiness, Skoda was able to overcome weaknesses.
It turned its previously deIensive position oI the brand to a positive customer-Iocused
experience.
The various awards Skoda has won demonstrate how its communications are reaching
customers. Improved sales show that A koda UKts new strategy has delivered beneIits.
Popularity: 17 |?|
In news that could be oI interest to those considering buying a new car, Skoda has announced
2009 brought it an unprecedented market share oI 1.9 per cent and higher sales than in 2008.

Robert Hazelwood, director oI Skoda UK, said the carmaker sold some 10,000 vehicles through
the scrappage scheme out oI a total oI 37,300.

Top sellers were the Fabia supermini Iollowed by the Octavia. It was also noted that the
manuIacturer had sold nearly 700 Yetis since the model's launch in September.

He credited retailers Ior having a hand in the success thanks to their quality oI service.

Mr Hazelwood expressed his optimism Ior the coming year, saying the latest addition to the
market, the Superb Estate, could boost the manuIacturer's perIormance again in 2010.
I believe Skoda will continue to provide the design, value and service that customers across the
UK desire," he added.

Back in November, the carmaker released data indicating UK demand was up 45.3 per cent year-
on-year.
Key Business Areas
Doosan`s core businesses are based on ISB (InIrastructure Support Business). Doosan`s
InIrastructure Support Businesses are made up oI six subsidiaries: Doosan Corporation, Doosan
Heavy Industries & Construction, Doosan InIracore, Doosan Construction & Engineering,
Doosan Mecatec and Doosan Engine. These subsidiaries provide people with electrical power,
desalinated drinking water, construction equipment, advanced machinery, deIense supplies,
houses, highways and bridges, chemical processing equipment and industrial engines.
Doosan now has core technologies Ior boilers, turbines and generators(BTG) - the three key
components oI modern Iossil-Iuel power plants. This now positions the company in the same
league as GE oI the US, Siemens oI Germany and Alstom oI France.
|4|
According to the FT(The
Financial Times, the UK-based business paper) report oI Sep 29 2010, through a series oI big
acquisitions, Doosan Heavy has become the Iourth-largest power-plant equipment maker in the
world, behind General Electric oI the US, Germany`s Siemens and ABB, the Swiss-Swedish
engineering group.
|5|

Compiled by UK-based KHL Limited and published in the magazine, International Construction,
the new up-to-date tabulation gives 2010 turnover Iigures Ior the world`s top 50 construction
equipment manuIacturers and shows growth in sales at DICE(Doosan InIracore Construction
Equipment, the global alliance oI construction brands that includes Doosan, Bobcat and Doosan
Moxy) has taken the company into 6th place in 2010.
|6|

edit] Nuclear and other power equipment
Doosan has shipped the equipment composed oI control element drive mechanisms (CEDMs)
and replacement reactor vessel heads to the Palo Verde Nuclear Generating Station power plant
in Tonopah, Arizona, which has a production capacity oI 1,400 MW oI electricity. It has sold
nuclear power plant equipment to the largest nuclear energy generating Iacility in the United
States. A reactor vessel head is used to maintain the pressure resistance oI a coolant, while a
CEDM is a device used to control the degree oI a nuclear reaction.
|7|
The new contract Ior
Doosan, worth some $195 million, closely Iollows an earlier contract Irom Westinghouse to
supply major equipment, such as steam generators and reactor vessels, Ior two AP1000s units to
be constructed at Georgia Power's Vogtle nuclear power station near Augusta, Georgia. Subject
to approvals, the two units are slated to enter service alongside Vogtle's two existing reactors in
2016 and 2017.
O Chinese market targeted
Doosan announced at the end oI May 2008 that it had signed a memorandum oI understanding
(MoU) with China National Nuclear Corp (CNNC) on cooperation on new nuclear power
projects in China. Among the projects commissioned by CNNC in China, Doosan supplied the
steam generators Ior both Qinshan Phase-3 units (Qinshan-4 and -5), the reactor vessels Ior both
Qinshan Phase-2 units (Qinshan-2 and -3), as well as equipment Ior the two AP1000 units at
Sanmen and two at Haiyang
|8|

Doosan has shipped the equipment composed oI control element drive mechanisms (CEDMs)
and replacement reactor vessel heads to the Palo Verde Nuclear Generating Station power plant
in Tonopah, Arizona, which has a production capacity oI 1,400 MW oI electricity. It has sold
nuclear power plant equipment to the largest nuclear energy generating Iacility in the United
States. A reactor vessel head is used to maintain the pressure resistance oI a coolant, while a
CEDM is a device used to control the degree oI a nuclear reaction.
|7|
The new contract Ior
Doosan, worth some $195 million, closely Iollows an earlier contract Irom Westinghouse to
supply major equipment, such as steam generators and reactor vessels, Ior two AP1000s units to
be constructed at Georgia Power's Vogtle nuclear power station near Augusta, Georgia. Subject
to approvals, the two units are slated to enter service alongside Vogtle's two existing reactors in
2016 and 2017.
O Chinese market targeted
Doosan announced at the end oI May 2008 that it had signed a memorandum oI understanding
(MoU) with China National Nuclear Corp (CNNC) on cooperation on new nuclear power
projects in China. Among the projects commissioned by CNNC in China, Doosan supplied the
steam generators Ior both Qinshan Phase-3 units (Qinshan-4 and -5), the reactor vessels Ior both
Qinshan Phase-2 units (Qinshan-2 and -3), as well as equipment Ior the two AP1000 units at
Sanmen and two at Haiyan.
|8|




Records total sales oI 1812 units in August 2011
umbai, September 01, 2011: SKODA Auto India, a Iully owned subsidiary oI SKODA Auto
a.s., Czech Republic and one oI the most promising automobile companies in India, today
announced a growth oI 20 Ior August `11 over the same period last year. SKODA Auto
India`s total sales Ior August`11 stood at 1812 units against 1512 units Ior August `10. SKODA
is emerging as a strong global automobile player in its segments and will introduce one more
model this year, the much anticipated entry level sedan. r. Thomas Kuehl, Board ember,
Sales and arketing, SKODA Auto India said, 'We are extremely positive about Skoda
Auto`s growth trajectory in India. Our endeavor to consistently provide consumers with value
products and services is one oI they key Iactors contributing to our growth. The recently
launched Laura RS will Iurther attract more enthusiasts towards our brand; the Laura RS is a
statement in itselI and provides sheer driving pleasure with a holistic experience oI a sports car.
The entry level sedan scheduled to launch at the end oI the year will also help us reach to a
whole new set oI audiences. SKODA is working on their dealership network and aIter-sales
service to enhance customer experience while reaching out to a larger section oI customers
across the country. The company currently has 82 showrooms across India. SKODA Auto
recently announced its 24 x 7 SKODA Roadside Assistance program, a unique aIter sales
proposition to enhance the ownership experience Ior its customers. The Roadside Assistance
program will be a complimentary service to all new SKODA customers Ior the Iirst 2 years.

Skoda odels in Indian market
Skoda has 4 models in the Indian market. The cheapest is the Skoda Fabio which is a hatch back
Iollowed by the Skoda Octavia, Skoda Laura and Skoda Superb. Th Superb is the Skoda Ilagship
and can set you back by anything Irom 25-30 lakhs oI rupees. The Skoda Fabia costs about 5-8
lakhs oI rupees and the price range oI the other cars are Irom 12-20 lakhs. They also have an
SUV, the Skoda Yeti in the market.
All Skoda cars have German engineering skills to show and are a sturdy vehicle. It is worth
noting that during the Second World War the Skoda works manuIactured guns and tanks and this
has rubbed oII on the Skoda models marketed in the world.
The Skoda cars come in both diesel and petrol versions and are a byword oI reliability. Earlier
the Skoda had marketed the Skoda Octavia 2000 MPFI (Multi Point Fuel Injection)model, but
that is discontinued now. This car developed 200 BHP and was a treat to drive. Now the Skoda
models on display have the 1900 cc diesel and 1800 cc petrol engines.
Skoda Octavia - largest Selling odel
The Skoda Octavia is their largest selling model. The car supports a diesel and petrol engine that
need not be touched Ior 200,000 km. Skoda cars are the leaders in the luxury car market in India
and have cornered a market share oI 25-30 in this segment. All Skoda models have carved a
niche Ior themselves in the Indian market
The Skoda Octavia has two variants the elegance and the rider. The elegance model is a luxury
model with high-class leather upholstery and state oI the art interiors. The car has a top speed oI
200km an hour and develops 180 BHP. The petrol version has an excellent pick up and easily
crosses 220km an hour. I have driven my Skoda on the Mumbai Pune expressway at 200km an
hour and the ride is a breeze. The elegance models have cloth upholstery.
Part oI the Skoda engineering marvel is the lock nut in each wheel. This nut can only be opened
by a special adaptor and keeping this adaptor is oI paramount importance, as otherwise the
wheels cannot be opened. It is also a saIe bet against tire theIts.
Unlike Japanese cars which are light weight, the Skoda cars made oI solid steel weigh nearly
2000kg, but despite the weight the powerIul engine oI this car easily propel it to a cruising speed
oI 150 km an hour. The Skoda models are also very economical with the diesel versions
delivering almost 15-19 km on a liter oI diesel. The petrol version clocks 12-14 km on a liter on
the highway.
Skoda with 6 Gears
The Skoda supports 6 gears including reverse. The reverse gear will take some learning as it is
engaged by pressing the gear lever down and then releasing it unlike the Japanese cars which are
straight away engaged in the reverse in a single Ilick. The car has the usual standard goodies like
Power brakes, ABS, Power steering and air bags. The best part is the air-conditioning which has
climate control and the dashboard with a host oI inIormation like Km per liter, distance, average
speed, Iuel use etc. All this inIormation is available at the Ilick oI a switch. The car also has
variable headlights whose beam can be adjusted with a switch Irom inside.
Skoda cars have been recognized Ior their technology and style. The models are stream lined
with an extremely low drag coeIIicient. In Iact a look at a Skoda will show its airplane like looks.
In Iact Skoda Laura won the tag oI the 2ost technological advanced car` in 2006. Owning a
Skoda is a prestigious thing in India and Europe. I will recommend it Ior purchase in case one
can Ioot the steep price.
Skoda has record sales in April
Monday 16 May 2011


Best April for Skoda
3,300 cars sold
2.45 per cent market share
April 2011 marks a record month for Skoda, thanks to more sales worldwide than ever
before. The &K saw dealers selling 3,300 cars over the month.
The brand`s popular Fabia, Octavia, Superb, Roomster and Yeti lines have helped earn the brand
a 2.45 per cent market share, besting sister brand SEAT by almost one per cent.
Further aIield growth continued, with the Ukraine increasing sales by 81 per cent. Sales in
Western Europe grew the brand by ten per cent.
'We are very satisIied with the sales Iigures, explained Jrgen Stackmann, the Skoda board
member Ior sales and marketing. 'With a growth oI almost one quarter in the Iirst Iour months
we have sent a clear message and are Iully on course regarding our growth strategy.
'Contributions to this result did not just come Irom the growth regions either. We are stronger
than ever on the European market and have won many new customers.
Skoda market share for April sees record gain

In April Skoda 's market share reached its highest level since December 2000. Registrations Ior
the month were 4,137 vehicles, representing a total market share oI 2.36 Ior the Czech
manuIacturer.

This exceeded the 2.26 market share recorded by the company in February this year.

So Iar in 2008, Skoda has registered 14,367 new vehicles, representing market share oI 1.67
Ior the year.

It is a signiIicant improvement on 2007, when the company's year-to-date market share was
1.53 by April.

Skoda UK director, Robert Hazelwood, said: "This increase in market share is testament not only
to the outstanding quality oI our cars, but to the dedication oI our retailers.

'It is also ample prooI that Skoda as a brand is continuing to grow and that the news that Skoda
is the manuIacturer oI happy drivers is not a secret any longer.

Skoda`s record result was achieved in diIIicult market conditions, although Society oI Motor
ManuIacturers and Traders (SMMT) Iigures suggest that April was a better month Ior the
industry. Total registrations Ior the month were 175,668 up by 5,505 on April 2007.

One oI the main growth areas Ior registrations was diesel vehicles.

The trends is a positive one Ior Skoda which is well placed to exploit, given its strong range oI
economical and attractive models, not least the incredibly Irugal new Fabia GreenLine, the
spacious Roomster, which is available with a selection oI diesel engines, and the class-leading
Octavia.

Skoda Achieves its Highest Ever FIeet Car Market Share
We have always known how good Skoda products are and just what great value for money they offer and
it now seems that fleets are wising up to this as well, for in April 2008, Skoda achieved its highest ever
fleet market share, registering 2,015 new fleet vehicles in the UK, which represents 2.2% share of the
overall market.
We here at BVL believe this is just the beginning of an extended period of growth for Skoda, as people
get to know about their current range and new models such as the "new Superb join the line up and even
more new and "dare say it exciting product is launched as we move towards 2010.
The new Fabia is a stunning little car and that's a "given but Skoda are exploiting the growth in the eco-
friendly diesels and recently launched its Fabia Greenline, which is an obvious competitor for the Ford
"ECOnetic products and Volkswagen's "Blue Motion range.
We have spent some time with senior staff members at Skoda and we have detected a real will to deliver
something exceptional, not just in their cars, or in value for money, but in the service and support they
offer and in making the entire customer experience very special.
Whilst we supply all makes and models of car & van, so are effectively unbiased, but you will see from our
other editorial and from our road tests that one of the main things we look for is honesty and we admire
proper "good value vehicles that do the job without fuss and vehicles that you would be happy to drive for
3 years. Skoda have always featured very heavily in our "we respect you list and we hope that more
people actually wake up to what a good top quality product it is. t doesn't make sense that people will kill
to have an Audi, or a Volkswagen, yet when the same bits are bolted together and called Skoda and
offered to the market at a super competitive price, we ignore it.
The fleet figure recently announced is far more significant than just numbers; it's an acknowledgment that
the people who know the best, the Fleet Managers are choosing Skoda in more increasing numbers and
in our opinion, as Skoda product finds its way to slot beside your car in the car park, you might just be
choosing one next time also.
We will be testing the new Skoda Superb very shortly, so watch out for our road test in our road test
section.
lr 1895 3|oda Auloroo||e Corpary Was lourded, Wrer vac|av Laur|r ard
vac|av K|ererl oegar rarulaclur|rg 3|av|a-orard o|cyc|es. Jusl lour years |aler,
Laur|r & K|ererl oegar rarulaclur|rg rolorcyc|es.
1905
%re l|rsl car, ca||ed lre 'vo|lurelle A, |eaves lre laclory gales ard lrar|s lo |ls
qua||ly ard allracl|ve appeararce soor ga|rs a slao|e pos|l|or |r lre ererg|rg
|rlerral|ora| auloroo||e rar|els.
1907
Laurin & Klement set up a joint-stock company that goes on to export cars to
markets the world over
1925
The Laurin & Klement automobile Iactory merges with the Skoda machinery
manuIacturing company in Plzen.
1930
A3AP ('A|c|ova 3po|ecrosl pro Auloroo||ov Prurys| - lre Aulorol|ve lrduslry Jo|rl-sloc|
Corpary) |s lourded ard oeg|rs us|rg assero|y-||re producl|or relrods, Wr|cr are
revo|ul|orary lor lre|r l|re.
19391945
0ur|rg lre War years, lre laclory locuses or produc|rg raler|a|s lor lre r|||lary.
Jusl a leW days oelore lre War erds, lre laclory |s ooroed ard susla|rs
cors|derao|e darage. %re erlerpr|se |s ral|ora||zed |r lre aulurr ol 1915.
1946
%re erlerpr|se's recorslrucl|or la|es p|ace urder a reW rare, AZNP
('Auloroo||ov zavody, rarodr| podr|| - Aulorol|ve P|arls, Nal|ora|
Erlerpr|se).
1964
The enterprise, now with production area oI 800,000 square meters and over
13,000 people on the payroll, begins producing the popular car S 1000 MB.
1987
Unveiling oI the long-awaited Skoda Favorite, a car with a modern design that
later helps to transIorm Skoda Auto.
1991
Apr|| 1 rar|s lre oeg|rr|rg ol a reW crapler |r lre Corpary's r|slory, Wrer |l |s acqu|red
oy lre slraleg|c parlrer vo||sWager. 3|oda oecores lre vo||sWager 0roup's lourlr orard.
1996
Production commences oI another milestone car model Ior the Company the
Skoda Octavia.
Porter`s Five Forces Framework:
The Threat oI Entrants:
Easlerr Europe courlr|es lral Were |r lorrer 3ov|el ur|or allracl rary
corpel|lors Wro l|rd |r lrese courlr|es reW rar|el, reW cuslorers, ard creap
|aoors lo reduce cosls so lre lrreal ol erlrarls |s very r|gr.
Bargaining Power oI Buyers:
The power oI buyers is high because consumers especially aIter globalization
have many choices Irom which to select when they purchase a car
Bargaining power oI suppliers:
Vary auloroo||e corpar|es rove loWard Jusl-lr-%|re |rverlory sysler ard
lral pusres rary supp||ers lo ra|e lre|r p|arls rear lrese auloroo||e corpar|es,
ard sore ol lrese auloroo||e corpar|es rade lre|r oWr parls, so lre poWer ol
supp||er |s very Wea|.
Threat oI Substitutes
%re lrreal ol suosl|lule W||| oe puo||c lrarsporlal|or |r o|g, croWded, ard reavy popu|aled
courlr|es, lr|s suosl|lule ray oe lasler ard creaper lrar dr|v|rg a car lrere, oecause
peop|e reed lo l|rd a par||rg lor lre|r cars ard usua||y |l W||| oe W|lr lees.
Competitive Rivalry:
%re auloroo||e rar|el |s ore ol lre rosl corpel|l|ve rar|els |r lre Wor|d, |r add|l|or,
lrere are rary corpar|es lry lo reduce lre|r cosls oy rov|rg lo |oW cosl courlr|es sucr as
Easlerr Europe ard As|a courlr|es, ard lry lo l|rd reW rar|el, so lre corpel|l|ve r|va|ry |s
r|gr |r lre |org rur.
1.Growing automobile
|rduslry |r V|dd|e Easl oy
9, 3oulreasl As|a oy
11, ard Alr|ca oy 8.
2. By 2010, electronics are
expecled lo accourl lor
rear|y 10 percerl ol ar
average ver|c|e's va|ue.
3.The Iorecast Ior the
market Ior new passenger
cars in Russia is 11.
4.U.S. small-car demand
outpacing North American
capacity
1.Highly crowded and
competitive environment.
2. Franchised dealerships are
lree lo sel ver|c|e pr|ces,
ard lrey ray or ray rol
oller cuslorers lre
d|scourls lral aulora|ers
prov|de.
3. Continuous increasing in
o|| pr|ces ray allecl
auloroo||es sa|es arourd
lre Wor|d.
CPM-Competitive ProIile Matrix