How profitable an automotive manufacturer is, mainly depends on how he can use his production facilities to full capacity. Examples of manufacturers, who are unable to do so, are Opel or Volkswagen, where overproduction leads to small profit margins. The strategy of Porsche is the opposite. Porsche differs from its competitors in having a high margin and no variation of production capacity or storage. It is also closed to external production suppliers, has low costs of fabrication, high demand, smart communication strategy and so on. In the beginning of 2008, Porsche satisfied 100 000 clients with only 4 models of cars.
Porsche has faced some difficulties in the United States (decrease of 20% of sales with only 14 500 cars sold), but its growth is increasing in Russia, China and Europe. Despite the crisis, Porsche seems to be the strongest car builder in the world. Partnerships help Porsche to maintain its great position.
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee