Porsche Company Global Marketing Report
The report relied on literature from business journals of international companies to obtain information regarding why Porsche company aim to go global. The study provides some of the motives that influence the company to move into international markets, for instance, market expansion. Porsche Company operates in various global markets including the United States and Japan. Information regarding the various global marketing models like product driven internationalization model used by Porsche Company to select different global markets is also provided. Online resources were also analyzed to help in evaluating the market entry strategies used by Porsche Company to move into new international markets. It had manufactured over 500 including the first Porsche by 1952. The company focused on innovations, and it kept producing and selling various new models of cars which ensured its rapid growth and expansion.
It went global in 1988 by expanding its market to the U. S and Japan, (Baur et al, 2017, pp. The rapid growth was also associated with the significant support it received from the government as well having a strong financial base to facilitate its plans and operations. The current globalize age present a lot of opportunities and threats to a company since the world today has been turned into a small world. It is easy and quick to copy innovations of different companies and therefore any company capable of going global has to invest in the innovations so that it reduces the risk of being outperformed by other companies, (Terpstra et al, 2012, pp. New competitors can arise from anywhere in the world which means a company has to be ready to face such challenges by investing in other markets around the world.
A company should not only depend on the local market especially when it has the potential to expand to international markets to avoid the risk of losing key market share, (Doole et al, 2008, pp. It is also essential in avoiding the risk of any business to sink since a variety of markets around the world provides security in case of failure in one market. Having a large market facilitates the growth of the company. Client Drivers 1. Distribution requests from abroad A company may receive requests from t from other foreign countries to distribute their products to them. The clients may be interested in the product due to certain reasons. A company uses the opportunity to move into such markets by investing in acquiring foreign market, (Grünig et al, 2017, pp.
If a model is not received positively by the customers, then the model is taken to another region to test if it can be marketable. Different models are tested in different regions until the best model for each region is determined. The table below shows the different car models from Porsche Company and their reception in America In America, the best-selling models are ALL MACAN followed by CAYENNE, (Jürgens et al, 2003, pp. However, according to statistics, the best-selling model in China is Cayenne SUV and Panamera sedan, (Amor et al, 2013, pp. People from different regions prefer different models of the car due to different reasons such as culture and personal interests. Porsche Company moved to America due to the clients’ demand for the luxury cars.
The company had built a reputation for having the best luxury cars and the affluent population in America were interested in the cars. Also, several racing organization developed an interest in the racing cars produced by Porsche due to the reputation they had. Porsche had to re-adjust its operations to ensure that it supplies the demanded products from America as an opportunity to expand its market. By supplying the cars to America, a lot of other opportunities are presented that the company uses to internationalize its market, (Grünig et al, 2017, pp. The models that were highly demanded were directly exported in large numbers to meet the increasing demand from the market, (Dodgson et al, 2018, pp. Some clients placed orders that were received by the company marketing team who facilitated the delivery of the models ordered through direct exporting the cars to China.
Opening foreign outlets A subsidiary of the parent company known as Porsche China Motors Ltd. Was established in China which commenced its operations in 2001, (Klauenberg et al, 2004, pp. This strategy facilitated entry of Porsche Company into China since there was a growing market demand which was increasing the demand for the car models. The company made co-marketing arrangements with several local companies and firms to facilitate easy and quick access to China market. Market Success Strategies Porsche Company uses a variety of strategies to ensure it remains successful in China. These strategies are applied after entry into any foreign market, and they vary from one market to another depending on different factors such as market behavior. Product adaptations The company invests in research and innovations to enhance manufacture of new and quality models according to the customers’ demands.
The firm is looking to grow in the market through developing new model lines like the Macan which is a compact sports utility vehicle, (Bradsher et al, 2009, pp. Therefore there are various recommendations that can be applied to help address some of the challenges associated with international marketing. Crucial strategic decisions should be taken to ensure that Porsche remains relevant and successful in the international market such extensive market research and innovations, (Leonidou et al, 3-33). Also, appropriate mechanisms should be developed to promote transparency and fairness in the EU support on globalization. Work Cited Agarwal, J. and Wu, T. Pearson Education, 2009. Baur, D. G. Case Study: Porsche versus Volkswagen. Bradsher, K. Routledge. Doole, I. and Lowe, R. International marketing strategy: analysis, development and implementation.
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