Swot Analysis of Car Company SAAB - Essay Example

SWOT ANALYSIS OF CAR COMPANY SAAB: Strengths: The biggest strength of the company is of the strong corporate background. Apart from this the company has diversified its operations into different areas and sectors. The company has the special automobile Royal Warrant issued by the king of Sweden (Swade).Weaknesses:The company is currently operating in narrow market and therefore has small and limited target market. Another weakness of the company is that, it is offering limited number of vehicles as compared to other large automobile companies in the industry.

From the start the company has been owned and overtaken by different organizations (Reuters; Saab Automobile Press Office), therefore there is no stable organizational culture or practices in the company. This shifting have also resulted in negatively affecting the brand image of the company as the company has not been able to build a consistent brand image.Opportunities:There is high opportunity for the car company if it expands its product portfolio and comes up with fuel efficient and environment friendly vehicles.

The company can expand its market share with the help of new ideas and innovative vehicles.Threats:The largest threat being faced by the car company SAAB is the increasing competition in the industry. Recently, the company has filed for bankruptcy and is facing the threat of being divided into parts (Nick).PEST ANALYSIS OF THE AUTOMOTIVE INTDUSTRY:Political Environment:There are increasing political and government regulations in the automotive industry. Almost all automobile companies are facing the issue of increase regulations on part of the government.

These legal and political regulations are being affecting the status of the automotive industry from the year 1960. Most of the recent regulations and rules have been influenced from the increasing concerns about the environment. Apart from this there are increasing taxes and duties from the government. There are also considerable amount of subsidies offered by the government for the companies operating in automotive industry (Plunkett Research).Economic Environment:Like any other industry, the automotive industry is also affected by the recent economic crisis.

The economic recession has resulted in decreasing the demand of the vehicles leading to the issue of excessive capacity. The companies are looking for different methods in order to achieve economies of scales. For this purpose, most of the automobile companies are either diversifying into other related businesses or are going for mergers and strategic alliances (Global Foresight).Social Environment:The social and cultural preferences are changing rapidly. Car or vehicle is perceived to be the status symbol in the society.

Apart from this the consumers are reluctant to spend more money due to the recent economic crisis and are looking for economical cars and vehicles. Along with this the customers are giving high considerations to the environment friendly vehicles and cars (Plunkett Research).Technological Environment:With the passage of time there have been different technological advancements which are leading towards different innovative vehicles and cars. Different automobiles manufacturers are using advanced technology in order to provide the customers will best features and increasing safety.

Also e-commerce and internet has direct influence on the automotive industry. Apart from this the automobiles companies are using new technologies in order to increase the plant efficiencies (Plunkett Research).Works CitedGlobal Foresight. Automotive: Report on Industry Trends. Global Foresight, Inc., 2006.Nick. Car Manufacturer Saab Files for Bankruptcy. Dec. 2011. 13 Mar. 2012 Plunkett Research. Automobile Industry Trends, Statistics & Analysis 2011 (Summary). Plunkett Research Ltd., 2011.Reuters. FACTBOX-Key facts about GM subsidiary Saab. May. 2009. 13 Mar. 2012 Saab Automobile Press Office.

Spyker Cars Finalizes The Purchase Of Saab. Feb. 2010. 12 Mar. 2012. Swade. Saab Pride – all arty Belgian Style. Trollhattan Saab. Feb. 2008. 12 Mar. 2012