|[pic] | | | | | | | | | | | | | | | | | | | | | | SWOT analysis in action | | | | | |Introduction | | |A koda was established in 1895 in Eastern Europe. Over the next 65 years it produced cars, cycles, farm equipment and aeroplanes. By | | |1990 the Czech management was looking for a strong partner and chose Volkswagen.
Volkswagen is the largest car maker in Europe and | | |A koda became one of its distinct brands. To improve its sales performance, A koda needed to assess the strength of its brand against | | |competitors. It used internal and external market research data to aid decision making. A koda prepared a SWOT analysis to audit its | | |position. A SWOT analysis helps to show the balance of internal strengths and weaknesses alongside external opportunities and threats. | | | | | Strengths | | |A koda asked customers what they thought about its cars and also used information from independent surveys. A koda has been in the top| | |five of the JD Power survey for
13 years and was voted a€? Number 1 car makera€™ by Top Gear viewers. This is because it concentrates | | |on providing a good owner experience – 98% of A koda drivers would recommend the car to a friend. The brand is associated with happy | | |customers and this is clearly a strength. | |Weaknesses | | |A koda is a small player in its market with just a 1. 7% share. This relates to out-of-date views about the brand which stemmed from | | |its Czech origins. From 1999 onwards, VW has worked to change this image. By 2006, the image of poor vehicle design and quality had | | |gone. However, the new image was not yet really strong. A koda decided it was time to start emphasising its strengths, rather than | | saying what the brand was not. | | |Opportunities and threats | | |Opportunities | | |A koda took the opportunity to develop a new market approach. Other car makers have straplines that put the emphasis on a feature such| | |as technology or luxury. A koda decided to use the key strength identified and focus on a€? happy customersa€™. | | Threats | | |The threat comes from competition. The UK car market is a crowded one with over 2,000 model types to choose from. A koda had to make | | |its cars stand out. Each car in the A koda range is targeted at a market segment with competitive pricing. A koda is also gaining | | |advantage by designing vehicles that are environmentally friendly at all stages of their life cycle. This is in line with its customer| | |focus. | | Outcomes | | |The SWOT analysis showed A koda how to move forward. | | |It confirmed strengths – owners were happy and the poor image of the brand had gone. | | |It also highlighted areas of weakness. – the brand had small market share and needed the public to see it in a more positive way. | | |A kodaa€™s new marketing campaign put the emphasis on a€? happy driversa€™. The message is that A koda cars are reliable, quality | | |vehicles and people are happy to own them. | | Conclusion | | |A koda is a global brand that offers a range of cars in a crowded market. It used a SWOT analysis to analyse research and decide on a | | |marketing strategy. This showed the company how it could build on what was good about the brand and overcome negative views. It | | |changed its brand image and this has led to improved sales. | | | | | | | | | | | | | | | | [pic][pic] [pic][pic]