Market Overview of Porsche Automobile manufacturer

            For Porsche Company, it is important to look at important trends of the UK market that how things are moving and what they can take as an opportunity for their strategic business unit and marketing plan. The facts from the market are not too encouraging as UK auto market has experienced decline in terms of sales in last few years. It has been revealed that diesel car sales have went down about 40%, which has made 16% decline in overall sales of new cars. However, the good news for petrol car manufacturers along with hybrid vehicles is that they have experienced a rise in their sales (P. Campbell 2018). So, overall it is encouraging news from the market for Porsche Company that hybrid cars are getting more attention from the customers. The company does deal in hybrid cars so they can look to grab more market share in this sector and come up with new models to attract new customers from the UK market.

        It is also important for the Porsche to look at market trends that which brands are getting more attention in last few years, and why they are able to do so. In 2017, the new car sales number was 2,540,617 for the UK market, which was 5.65% less as compared to previous year. It has been observed that UK car market has experienced decline in recent times due to various factors. As far as top brands in the UK market are concerned, the top 3 brands in 2017 were Ford, Volkswagen, and Vauxhall. Toyota, Nissan, Audi, BMW as well as Mercedes Benz were also in the top 10. The new car sales number was 14051 for Porsche in UK, placing it at number 26^th in the list. However the good news was that company has been able to gain more market share as compared to previous years. It is a positive sign for the company to review that which areas have proved beneficial for them in UK market (Bekker 2018)

        The size of the UK automobile market is one of the significant ones in the world. It has a great role to play in UK’s economy as it has a turnover of £82 billion. The other important fact is that in UK’s car manufacturing industry, the number of employed people is 186,000. The market facts & figures has revealed that there are more than 30 manufactures working in UK, who are involved in making 70 vehicle models for the UK market. There are more than 34.7 million cars on road of UK, telling the huge potential of this industry. The number of countries importing UK manufactured cars is 160, which is huge in so many ways, and as per stats 1334538 cars were exported in 2017 (SMMT 2018). These statistics from UK’s automobile market speaks about its huge volume and potential and Porsche can take a positive lead out of these facts & figures for their future strategic business units and market planning, which can help them to get more market share.

Macro Environment (PESTLE Analysis) of Porsche Automobile manufacturer

Political Factors of Porsche Automobile manufacturer

        The political factors include the policies made by the government to regulate the automotive industry. In recent years the government have implemented new polices to reduce carbon emission or to protect the environment through various ways which have direct impact on the automotive corporations such as Porsche. The authorities wants the sports car manufacturers to build more fuel efficient cars. In short it can be said that the political factors significantly effect the performance and sales of the Porsche Corporation (P. Campbell 2018).

Economic Factors of Porsche Automobile manufacturer

        The economic factors include changes in prices, exchange rate, tax rate and inflation rate. If changes occur in any of the described factors than the sales and customer purchasing power get effected. It means that the revenue of the Porsche car can also experience fluctuation to the change in economic factors. When the fuel prices around the world goes up the price sensitive consumers will definitely change their purchase pattern. Therefore the economic factors do effect the success of the business if not mitigated through proper business strategies (Campbell, Edgar and Stonehouse 2011).

Social Factors of Porsche Automobile manufacturer

        The social factors include the taste and preferences of the customers. Today the customers get attracted to the vehicles that have modern and stylish design. Porsche have to keep the customers preferences in mind if they want to achieve customer loyalty. Moreover in the past several years the customers have become environmentally conscious and want to purchase those cars which are fuel efficient. The fuel efficient cars provide more benefit to the customers and protect the environment therefore Porsche have to be more environment friendly to enhance its customer sales (Spender 2014).

Technological Factors of Porsche Automobile manufacturer

        The recent years technology has become quite advanced and automotive corporation are innovating the vehicles through including various new features in the car that not only enhance the safety of the vehicle bit also provide more convenience to the drivers. It can be said that technological factors have great impact on Porsche Corporation and its sales. Customers purchase Porsche vehicle because of their design and features which they provide to their customers. In short Technological factors does have impact on corporation’s sales (Corum 2015).

Legal Factors of Porsche Automobile manufacturer

        The legal factors include the rules and regulations which made by the government. Porsche corporation focus on safety and manufacture their cars according to the government regulations therefore it can be said that the legal factors currently does not have that much effect on the operations and activities of the business. The governments makes rules and regulations so that automotive companies produce high quality vehicles.

Environmental Factors of Porsche Automobile manufacturer

        The environmental factors means that the products should be produced in such a way that it won’t affect the environment. As discussed earlier the customers have become quite environmental conscious which means that if organization wants to enhance its sales or market size it have to produce such vehicles that are environmental friendly. The fuel efficient cars becoming more popular among customers therefore the corporation should focus on producing such cars (Benson and Bugnitz 2004).

References of Porsche Automobile manufacturer

Bekker, Henk. 2018. 2017 (Full Year) Britain: Best-Selling Car Brands. Accessed November 14, 2018. https://www.best-selling-cars.com/britain-uk/2017-full-year-britain-best-selling-car-brands/.

Benson, Robert J., and Tom Bugnitz. 2004. From Business Strategy to IT Action: Right Decisions for a Better Bottom Line. John Wiley & Sons.

Campbell, David, David Edgar, and George Stonehouse. 2011. Business Strategy: An Introduction. Macmillan International Higher Education.

Campbell, Peter. 2018. UK auto market stuck in reverse gear, new car sales slump 16%. Accessed November 14, 2018. https://www.ft.com/content/7dc079ce-38a7-11e8-8b98-2f31af407cc8.

Corum, Rick. 2015. Principles of Management: a Christian Perspective. WestBow Press.

SMMT. 2018. UK Automotive. Accessed November 14, 2018. https://www.smmt.co.uk/industry-topics/uk-automotive/.

Spender, J.-C. 2014. Business Strategy: Managing Uncertainty, Opportunity, and Enterprise. OUP Oxford.