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Skoda Automobile Company - Essay Example

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An essay "Skoda Automobile Company" claims that  Skoda automobile company started its operations in 1925 after a lengthened period of producing customized bicycles. The company based in the Czech Republic advanced gradually in producing bicycles and cars for the Czech market. …
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Skoda Automobile Company
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Skoda Automobile Company

Skoda automobile company started its operations in 1925 after a lengthened period of producing customized bicycles for the founders, Laurin and Klement who were cyclists. The company based in the Czech Republic advanced gradually in producing bicycles and cars for the Czech market. The profits accumulated during the initial stages of stages served as propellants since the management adapted them for capital in its advent to globalization. Skoda automobile engaged in the production of cars for the European market despite the presence of competitive rivalry between the German and British manufacturer. After the initial staging of globalization, the company’s management evaluated the importance of diversification of the business portfolio by the inclusion of other product categories. Therefore, the company started to manufacture farm machinery and airplanes as additional products to the main product. Chronological accounts ascertain that the company’s production and sales competence enabled the company to survive through the difficult environmental forces prevailing in the mid 20th century. Scholars derive that Skoda car manufacturing company faced the threat of the great depression, a situation that halted most industrial signs of progress in Europe (Kreitner, & Cassidy, 2011). This period coincided with the Second World War whereby bombers from rival sides targeted industries. Further, Skoda managed to survive the eventual period of economic restructuring during the postwar period despite the presence of the German and British car models in the target markets (Roberts, 2013). Eventually, Skoda observed that by sourcing for stable car investors, the business would propel immediately as the investors would provide capital equity for the company thus they chose Volkswagen AG due to its wide brand network. The SWOT analysis Strengths of Skoda Automobile car industry Skoda produces its machinery in view of presenting the best machinery to the global markets. Mainly, the company boasts over dominance of a profitable market share in the European market despite the presence of stronger competitors. The company’s diversification of investment plan engages the acquisition of mergers and taming other market leaders to invest in the plans. The company’s research and development team engage in an evaluation of alternatives in order to reach the desired market segments. Therefore, the management stipulates its long-range plans in the market and order for a survey of 20,000 clients in the global market. Arguably, many companies lag behind Skoda in undertaking customer surveys in order to bear the ability to produce the automobile in reflection to the present needs in the consumer markets. Skoda’s strengths further emanate from the extent of independence in undertaking direct and unbiased surveys. In this case, the management ensures that potential customers reveal the needs and wants and stipulate their perceptions concerning Skoda car models in order to undertake the fast improvement of the products with the inclusion of customer’s stipulated variables. The company rests assured that achieving the desired competence through its research body, the JD surveys to be partial since customers would not hold back their feelings about the company given that the researcher is independent. ... Read More
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