The basic purpose of the Skoda brand in international trade was to compete and grow its small 1.7% market share globally. Some of its key strategies included changing perceptions of its brand which previously had a poor image, fulfilling gaps in the market with new products and services, and developing a strong product range targeting different market segments to appeal broadly. By addressing these areas over 100 years, Skoda was able to survive and thrive in international trade across 100 countries.
The basic purpose of the Skoda brand in international trade was to compete and grow its small 1.7% market share globally. Some of its key strategies included changing perceptions of its brand which previously had a poor image, fulfilling gaps in the market with new products and services, and developing a strong product range targeting different market segments to appeal broadly. By addressing these areas over 100 years, Skoda was able to survive and thrive in international trade across 100 countries.
The basic purpose of the Skoda brand in international trade was to compete and grow its small 1.7% market share globally. Some of its key strategies included changing perceptions of its brand which previously had a poor image, fulfilling gaps in the market with new products and services, and developing a strong product range targeting different market segments to appeal broadly. By addressing these areas over 100 years, Skoda was able to survive and thrive in international trade across 100 countries.
The basic purpose of the Skoda brand in international trade was to compete and grow its small 1.7% market share globally. Some of its key strategies included changing perceptions of its brand which previously had a poor image, fulfilling gaps in the market with new products and services, and developing a strong product range targeting different market segments to appeal broadly. By addressing these areas over 100 years, Skoda was able to survive and thrive in international trade across 100 countries.
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Skoda Case Study
Submitted for the Subject: Business Environment
Questions of the Case
Submitted By:-
NAME:- VU ROLL:- REGISTRATION NO.:- YEAR:- SECTION:- 1) WHAT IS THE BASIC PURPOSE OF THE BRAND SKODA IN INTERNATIONAL TRADE?
2) WHAT WERE THEIR STRATEGIES?
3) HOW DID THEY SURVIVE IN INTERNATIONAL TRADE
OVER A PERIOD OF MORE THEN 100 YEARS?
4) PUT DOWN YOUR SUGGESIONS (IF POSSIBLE) THE
POSSIBILITIES ARE SHOW DOWN IN FUTURE?
Question Attempted
1) WHAT IS THE BASIC PURPOSE OF THE BRAND SKODA
IN INTERNATIONAL TRADE?
Answer The company was founded by the Vaclav Laurin and Vaclav Klement, these two were the Keen Cyclists earlier they used to produce their Own Bicycle. Later on in 1925 onwards they came into the business of Cycle, Cars, Farm Plough and Airplanes. The Geographical Location of Czechoslovakia faced a hard time due to war, Economic Depression and Political change. Basic purpose of Brand Skoda was to compete and grow in the market as well as to grow their market share because at that period it was having only 1.7% of market share. So they decided to design such a Car that can Compete and Grow in the International market. Skoda Conducted a Market Research and they did the SWOT analysis in order to find various ways to place their product in the International and UK Market. Hence in order to Grow in International Market they worked on various Parameters: -
1) Fit Into Highly Competitive And Fragmented Market –
Skoda has only 1.7% of market share, that made it a very small player in the market for cars. So the issue was how Skoda will fit into highly Competitive and Fragmented Market.
2) To Change The Perception About The Brand Globally –
This was because of the Skoda Cars used to has an image of Poor vehicle quality, Design, assembly and materials. At that time car ownership was all about the image, what do other people will think it was the perception. So in 1999 Onwards, Under Volkswagen Ag ownership Skoda change this negative image. So that made change in the perception of Skoda Car from poor image to Neutral Image, with the help of promotional Campaign made sought to correct old perception and demonstrated what Skoda car were not. That lead the people to believe Skoda cars are great to Own and Drive. It helps them to improve its image in the market as competition were Ford, Peugeot and Renault.
3) To Fulfill Gap In The Market For New Product Or
Services – As SWOT analysis indicated that there is opportunities in the external environment of a business. It Focused on the customer experience. Example – Background Music, Comfortability, etc. That was their “USP”.
4) To Have A Strong Product Range To Compete Globally
– Skoda car targeted different segments: a. City Car (Basic Car) b. Luxurious “Up market Appeal” c. Family Car. Each model range is priced to appeal to different groups within the mainstream car market. So, now if you look at Skoda it has almost covered 100 Countries.
