Skoda Business Strategy

Case Study
Pages 10 (2510 words)
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Skoda, the Czech auto giant has been borrowing harder in Europe to ensure that they have the right market for themselves. Slowly displacing some of the other manufacturers in the auto segment, the company capitalised on its reliability brand and combining well with Volkswagen ensured that the car they produced was really world class.


The market picked up and so did profits. For the first time in Skoda history, the company had a wait list of customers in UK. The company registered continuing and ongoing growth in profits for the fifth year in a row.
The Auto industry in the world has been going through an excessive change in performance and growth. In the last decade, the rise of China and Asia as manufacturing hubs changed the course of the auto industry in the world. The market in China and India, seem to be picking up and the Chinese market which has only 2% of its population holding four wheelers is already the size of the Japanese market. This makes it an highly probable growth market in the future (Jianxi Luo 2005). With many of the European and American car manufacturers finding their market dwindling and having surplus capacities have been reducing their manpower. They need to look at fresh and growing markets like that of China and Asia. With only a few players controlling the car market of the world, players like Skoda who has been gaining ground in Europe and in Asia need to be watched. The rising market for Skoda and the increasing profitability of the company makes it a company worthy of analysis (Tulder RV & Ruigrok W Jun1997). Beating some of the seeded players in the European market is no easy task. ...
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