Case study: Skoda
- What was the key weakness that Skoda was able to identify?
- What strength did Skoda use to turn its brand weakness into an opportunity?
- How has Skoda strategically addressed external threats?
- What in your view are the important benefits of using a SWOT analysis?
To begin with, Skoda is in an industry gathering more than 50 players. The car industry is a fragmented market, which means that it is a daily work to stay competitive. With 2.4% of market share in 2011, Skoda is not a ?top of mind? car brand in UK. This weakness means that the car manufacturer need to set up a positioning that will enable to differentiate from the top ten competitors.
Skoda identified a problem concerning the perception of the brand. Indeed, the brand is perceived as being "out-dated" and thus, it is associated with a low range car (bad quality, bad design, and bad material). The image reflected by the car is associated, often to its owner, thus, those holders of Skoda's cars were disappointed by their purchase.
Therefore, it is evident that the perception of the brand by consumers is a key weakness of Skoda. To overcome this weakness, Skoda has progressively moved upmarket, with more prestigious cars as the Skoda Superb. But to distinguish from the renowned brands, Skoda is building a strong image in the consumer's mind.
[...] Thus, customers can't overlook Skoda brand during their prospection. Moreover, to overcome the threat of EU legal and environmental regulations, Skoda decided to be totally involved in this issue. They thought about it at every stages of the product life cycle, from manufacturing to recycling. With this strategy, Skoda succeeds to be faultless in term of sustainable development and is able now, to design products that perfectly follow current trends. What in your view are the important benefits of using a SWOT analysis? [...]