PESIT

MBA DEPARTMENT
MARKETING MANAGEMENT TERM PAPER ON SKODA AUTO INDIA

BY SIDDHARTH PATIL 1PB12MBA31

Table of content

Chapter 1 Introduction to Skoda Company........................................................................................3 Business as a transformation process................................................................................3 Chapter 2 2.1 Organizational audit....................................................................................................4 2.2 Business environment..................................................................................................4 Chapter 3 !S"!# analysis$ %arketing mi& and #C for Skoda Company ....................................' Chapter 4 S(O" analysis for Skoda company...............................................................................1' Chapter 5 '.3 Conclusion.................................................................................................................1)

References......................................................................................................................1*

Chapter 1
S o!a Co"pan# an! $ts% b&s$ness 1'1 Intro!&ct$on to S o!a Co"pan# "+e t,o cyclists$ ,+o ,ere kno,n as -aclav #aurin and -aclav .lement$ are considered as t+e founders of Skoda Company. "+e t,o cyclists ,ere used to design and produce t+eir o,n /icycles and eventually it ,as esta/lis+ed as Skoda. In 102'$ Skoda ,as esta/lis+ed in Czec+oslovakia and gradually$ it ,as e&panded to,ards !astern !urope /y producing cars$ farm ploug+s$ and aero planes ot+er t+an /icycles. Skoda +as to cope ,it+ +ard times in company +istory suc+ as ,ar$ economic pro/lems and also t+e c+anges in t+e political environment. (+ile t+e Skoda is gro,n up internationally$ t+ere ,as a re1uirement of a strong foreign partner. By$ 1002 -olks,agen 34 +ad dominated /y 5oining Skoda. -olks,agen 34 is kno,n as t+e leading car manufacturer in !urope /y manufacturing variety of /randed products suc+ as -olks,agen$ Skoda$ and 3udi. "+e remarka/le t+ing is t+e Skoda 6. is selling Skoda cars t+roug+ its7 independent net,ork of certified dealers. 1'2 B&s$ness as a transfor"at$on process In common$ t+ere is an input and output can /e clearly identified in a /usiness. Input may consist of ,orking force$ entrepreneurs+ip$ capital and land. Output may /e goods and services. "+erefore$ t+e process of transformation is common for all t+e organizations and most of t+e time$ output can /e considered as a com/ination of goods and services 8O&ford 6niversity ress 222)9. :or an e&ample considering t+e +ospitality as a /usiness foods and /everage can /e t+e goods t+ey serve and t+e lodging may /e t+e service t+ey offer. "+e critical t+ing is to /e produce outputs ,+ic+ may ,ort+ +ig+er t+an t+e inputs. In financial terms$ it is kno,n as t+e profit in relation to t+e organizations ,+ic+ are e&pecting profits. But$ in t+e case of non profit oriented organizations suc+ as sc+ools and +ospitals ot+er indicators are used to measure t+e progress. "+e process of transformation may differ from /usiness ,ise. "+e critical t+ing is to implementing innovative met+odologies of value addition for t+e products and services ,+ile cost cutting 8O&ford 6niversity ress 222)9. -alue addition can /e done /y manufacturing outputs t+at t+e customers are ,illing to pay money more t+an usual price. Since t+e /rand name is incorporated ,it+ customers7 lifestyle and preferences$ effective /randing may improve t+e sales. :or an e&ample$ plain pair of s+oe can /e marketed to a +ig+er price /y /randing it ,it+ /rands like ;ike or 3ddidas.
3

Chapter 2
(r)an$*at$onal a&!$t an! the b&s$ness en+$ron"ent 2'1 (r)an$*at$onal A&!$t Organizational audit is critical for a /usiness to ac+ieve t+e follo,ing o/5ectives.
1. 2.

"o analyze t+e /usiness7s organizational frame,ork$ procedures and flo, c+art. "o investigate t+e contest /et,een t+e 5o/ descriptions$ responsi/ilities and t+e organizational flo, c+art.

3. 4.

"o +ig+lig+t unsatisfactory aspects of t+e current organizational structure. "o define development pat+s for delivering organizational improvement.

"o meet t+ese o/5ectives organizational audit is /eing done /y analysis of e&isting data$ summary reporting$ individual intervie,ing processes and analysis of ra, data gat+ered t+roug+ t+e surveys. Organizational audit is very important to cope ,it+ t+e /usiness environment of a /usiness. S$)n$f$cance of b&s$ness strate)# to a n&"ber of sta e hol!ers

2'2 B&s$ness en+$ron"ent It is /elieved t+at /usiness transformation process does not take place in a vacuum. :irms are driven in particular frame,orks and su/5ected /y t+e /usiness environment. Business environment can /e divided in to t,o.
1. %icro 2. %acro

%icro environment consist of individuals or organizations ,+ic+ t+e /usiness deal ,it+ a regular /asis. It may include customers$ employees$ distri/utors and suppliers ,+ic+ are kno,n as t+e stake+olders. "+at all components may +ave t+e direct involvement of t+e /usiness activities and it can /e affected /y t+e actions of t+e /usiness. "+erefore$ it can /e concluded t+at micro environment may play a vital role in t+e success and t+e /e+avior of a /usiness. "+e macro environment may consist of factors ,+ic+ are lying outside of t+e direct control of t+e /usiness. It includes economy$ policies of t+e government and also t+e social c+anges. Since t+ese macro factors can primarily c+ange t+e environment of a /usiness one individual /usiness can rarely do muc+ on its o,n to s+ape t+em. "+eoretically t+e macro environment can /e analyzed /y using !S"!# analysis.

Chapter 3
The PESTE, anal#s$s for S o!a Co"pan# PESTE, Anal#s$s !S" analysis is t+e met+odology of analyzing t+e macro environment in most of t+e countries. But$ t+e e&panded !S" model ,+ic+ is kno,n as !S"!# is commonly used in 6.. !S"!# is stand for olitical$ !conomical$ Social$ "ec+nological$ !nvironmental and #egal analysis. It descri/es t+e outline of macro environment in relation to t+e /usiness environment. <eferring to t+e political factors$ it consists of policies implemented /y t+e government suc+ as t+e involvement in t+e economy. It also includes ,+at kind of goods and services to /e produced and t+e priorities in relation to t+e /usiness support. "+e political decisions may play a vital role for some /usinesses ,+ic+ are related to education +ealt+ and also in t+e infra structure facilities. Considering t+e Skoda Company$ t+e c+anges in la,s and regulations suc+ as accounting standards$ ta&ation re1uirements and environmental la,s and legal po,er of t+e foreign states may affect on t+eir /usiness especially in t+e international trade. "+erefore$ it is critical to monitor t+e governments7 policies and regulations in a continuous manner. !conomic factors may include economic gro,t+$ interest rates$ e&c+ange rates as ,ell as t+e inflation rate. "+ose are t+e factors t+at may +ave t+e potential to make effects on operations and decisions. <eferring to Skoda$ interest rate may affect its7 cost of capital and /ecause of t+at it determines t+e e&tent of t+e gro,t+ of t+e /usiness and e&pansion. !&c+ange rates may affect t+e costs of e&porting goods and t+e supply and price of imported goods. Social factors consist of cultural aspects and include +ealt+ perception$ population gro,t+ rate$ age distri/ution$ career attitudes and emp+asis on safety. C+anges in social factors influence in t+e product demand and operation. :or e&ample$ aging process may generate smaller and less=,illing ,orkforce ."+is may lead to increasing t+e la/our cost. "+erefore$ referring Skoda to cope ,it+ t+ese trends t+ere s+ould /e various management strategies to /e adopted. :or an e&ample$ it s+ould /e more concerned on age limit of t+e ,orkers ,+en recruiting ne, ,orkers.

<ate of tec+nological c+anges$ automation and t+e tec+nical inducements altoget+er considered as tec+nological factors. "+ose factors may influence ,it+ t+e outsourcing decisions$ market entry /arriers and effective production level of a company. (+en considering t+e Skoda$ it is producing /randed motor cars. "+erefore$ tec+nology s+ould /e t+eir main focus. Because$ it creates opportunities for ne, products and product improvement in terms of marketing. 3s t+e tec+nology advances$ ne, products may introduce in to t+e market. !cological and environmental aspects suc+ as ,eat+er$ climate$ and climate c+anges can /e considered as environmental factors. "+ose factors may especially influences industries suc+ as tourism$ farming$ and insurance. :urt+ermore$ gro,ing a,areness of t+e potential impacts of climate c+ange is affecting +o, companies operate and t+e products t+ey offer$ /ot+ creating ne, markets and diminis+ing or demolis+ing e&isting ones. >iscrimination la,$ consumer la,$ antitrust la,$ employment la,$ and +ealt+ and safety la, can /e considered as t+e component of t+e legal factor. "+ese factors can influence ,it+ t+e operation process$ cost of production and t+e demand for t+e products. #egal aspect mainly focuses on t+e effect of t+e national and ,orld legislation. "+e Skoda Company receives all t+e rig+ts applica/le in t+e nature of t+eir /usiness and every inventions and product developments are al,ays going into t+e patented process. I.e. 3udi$ Skoda. "+e !S"!# factors are com/ined ,it+ e&ternal micro=environmental factors and internal drivers in relation to t+e /usiness. :urt+ermore$ it can /e e&plained as opportunities and t+reats in a S(O" analysis.

MAR-ETIN. MI/
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<O>6C"S 3 total of 044$432 S.O>3 ve+icles ,ere manufactured ,orld= ,ide in 2212. "+is represents a 4.0? increase compared ,it+ t+e previous year. roduction of t+e S.O>3 <apid and S.O>3 Octavia /egan in %lad@ Boleslav in 2212. In addition$ t+e production of t+e S!3" "oledo ,it+ a total of '$222 ve+icles /egan. "+e increase in production volume did not occur only in !u= rope$ /ut also in <ussia$ India and C+ina. In 3uranga/ad$ India$ production of -olks,agen and 3udi /rand ve+icles ,as also increased. In total$ 12$'01 of t+ose ve+icles ,ere produced t+ere. In t+e C+inese partner plants$ a total of 22A$A'3 S.O>3 Octavia$ :a/ia$ Super/ and <apid ve+icles ,as produced in t+e given period. Overall$ t+is is an increase in production of 1.A?. S.O>3:a/iaB S.O>3 :a/ia production suffered fluctuations in 2212$ /ut t+e model remains popular in its class. 3 total of 231$032 S.O>3 :a/ia ve+icles ,ere produced ,orld,ide C 11.2? fe,er t+an t+e previous year 82211B 2A1$12) S.O>3 :a/ia ve+icles9. S.O>3 <oomster BS.O>3 <oomster production at t+e -rc+la/D plant sa, an in= crease in 2212. In total$ 30$240 S.O>3 <oomster cars ,ere /uilt$ an increase of ).)? compared to 2211 82211B 3A$42) S.O>3 <oomster ve+icles9. S.O>3 Octavia B"+e S.O>3 Octavia ,as t+e /est=selling model of S.O>3 36"O once more in 2212. 3 total of 42A$30) ve+icles ,ere produced ,orld,ide. "+e S.O>3 Octavia t+erefore accounted for t+e largest s+are of S.O>3 36"O production in 2212 ,it+ 43$2? 82211B 422$4A2 S.O>3 Octavia ve+icles$ 44.)? of total S.O>3 36"O production9. S.O>3 Eeti B"+e S.O>3 Eeti$ too$ recorded rising production num/ers. "+e total volume gre, /y 1).A? reac+ing 02$**2 ve+icles 82211B ))$312 S.O>3 Eeti ve+icles9. S.O>3Super/ BIn its class$ t+e S.O>3 Super/ sa, a slig+t do,nturn in sales. Overall$ 12A$*4) ve+icles ,ere /uilt in 2212$ ,+ic+ is a de= crease of 12.*? compared to 2211.

#3C! S.O>3 3uto$ /eing t+e largest company in t+e Czec+ <epu/lic <IC!

Car Model

Avg Ex-Showroom Price

Skoda Fabia

Rs. 5,0 ,!"#

Skoda Ra$id

Rs. !,%0,!5

Skoda &a'ra

Rs. (#,!%,0 "

Skoda )e*i

Rs. (#,+",

Skoda S'$erb

Rs. (+,%!,+5#

<O%O"IO;S
9

Implementation started ,it+ t+e creation of t+e profiles and organically start to /uild t+e net,ork. "+e social media c+annels ,ere created in Fanuary 2212 ,it+ t+e 3uto !&po 2212. "ill %ay 2212$ t+e foundation ,as created ,it+ t+e response mec+anism setup$ t+e e&pectations from t+e campaign and also t+e tone$ personality of t+e /rand ,ere created. %ay 1$ 2212 Skoda India :ace/ook age +ad 0)' fans. :rom %ay 2212 on,ards$ t+e impetus ,as to propagate t+e community in terms of engagement as ,ell as discussions a/out Skoda as a /rand$Skoda cars$ customer service and t+e numerous activities t+at Skodaengages in offline.

Offline !ventsB 6se of images and videos from events$ engagement opportunities ,ere created to eit+er attend events or ,in merc+andise. Supporting t+e offline events t+roug+ t+e Social media c+annels +elped create a positive /uzz a/out t+e company online Car #aunc+esB

;e, :a/ia #aunc+ C Buzz ,as generated for t+e ne, :a/ia launc+$ even t+oug+ a different page ,as created for t+e same. <eal time updates from t+e press conference$ e1ual opportunities for all online community to participate in t+e e&clusive :ace/ook contest and of up=to=date information ,it+ t+e rig+t images and videos for t+e ;e, :a/ia ,ere made availa/le to t+e Skoda :ace/ookcommunity Skoda Eeti C 3n entire social media campaign ,as developed to launc+ t+e car and generate online coverage on t+e same

Build 6p to t+e launc+B Eetival C 3n offline event ,as created ,+ere t+e invitees ,ere sent only to t+e :ace/ook and ",itter community. "+is ,as done to see t+e Eeti for t+e first time$ after t+e 3uto !&po and t+e first c+ance ,as given to t+e Social media community. "+e Eetival ,as promoted only online$ t+at too ,it+out any paid media spends "+e Eeti "railB "+e Skoda Eeti ,as displayed in t+e various Skodas+o,rooms across t+e country as a sneak peek . "+e :ace/ook page ,as t+e only place ,+ere t+e vie,ers could get an itinerary as ,ell kno, e&actly +o, to contact t+e dealerGs+o,room ,+ere t+e Eeti ,as at any point of time. 3 custom "a/ ,as created t+at ,as updated daily to keep track of t+e Eeti movement "+e !uropean Eeti "railB 3 fe, auto e&perts ,ere taken on a !urope trail /y Skoda Eeti ,+ic+ ,as done ,it+ %id=>ay colla/oration. "+e online promotion for t+e same ,as done t+roug+ t+e Social media community of Skoda to s+o,case +o, t+e Eeti performed on cross country trails and long distance +andling. <et,eets$ images and e&pert opinions ,ere s+ared at an almost real=time /asis to give t+e audience t+e real e&perience of t+e Skoda Eeti

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"+e <ig+t of (ay !&peditionB !ven t+oug+ t+e event ,as offline$ online support ,as provided t+roug+ t+e social communities and a microsite developed for inviting entries. 3 set of Hcommon7 people ,ere selected as t+e participants of eac+ leg of t+e series and t+e Hstar factor7 ,as added /y a famous musicianGactor and a ,ell reno,ned ,ildlife p+otograp+er. "+e :ace/ook c+annel ,as one of t+e sources of participant entries /efore t+e start of t+e series. 6sers ,ere to su/mit t+eir p+otograp+ of t+emselves doing adventurous activities in addition to registering on t+e microsite !veryday engagementB "+e casual community audience ,as engaged on an everyday /asis t+roug+ various topics like Customer ServiceB !very 1uery G issue t+at came in ,as responded to ,it+in 2 +ours of /eing received and passed to t+e rig+t department as per t+e response mec+anism decided /y t+e company and Iuasar. "+e company directly took care of t+e issue t+roug+ t+eir dealers and once resolved$ t+e confirmation ,as posted /ack to t+e originating c+annel #isteningB :ace/ook$ ",itter and 4oogle 3lerts ,ere used as main c+annels for listening. :or all complaints$ t+e response mec+anism ,as put to use ,+ere as for 1ueries$ immediate replies ,ere posted to create a sense of urgency and responsiveness for Skoda 3uto India

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Product Life Cycle

It is a generally said t+at 02? of t+e products ,e use today did not e&ist in t+eir current form five years ago. Similarly$ 02? of t+e products ,e ,ill /e using five years from no, do not e&ist currently. 4enerally ,e can all identify products t+at +ave c+anged from t+eir original form andGor content. 3nd$ ,it+ todayJs rapid c+anges in tec+nology$ almost every product ,ill undergo some sort of modification during its lifetime. 3 roduct in its life cycle under goes a lot of stages$ sales and profit of a product s+o,s a lot of variation in eac+ stage so it /ecomes important for a marketer to kno, t+e marketing situation and ,+ere +is product is placed in roduct #ife Cycle 8 #C9$t+us impacting t+e marketing strategy and t+e marketing mi&. .no,ledge of t+e product7s life cycle can provide valua/le insig+ts into ,ays t+e product can /e managed to en+ance sales and profita/ility. %arketing activities are +eavily dependent on t+e stage in t+e product life cycle.

roduct #ife Cycle +as four stagesB 1. 2. 3. 4. Introduction 4ro,t+ %aturity >ecline

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In reality very fe, products follo, suc+ a prescriptive cycle. "+e lengt+ of eac+ stage varies enormously. :or e&ample :as+ion products tend to +ave a s+ort life cycle i.e. t+e time /et,een t+e launc+ of a product and t+e point at ,+ic+ t+e product is mature is very 1uick. "+e decisions of marketers can c+ange t+e stage$ for e&ample from maturity to decline /y price=cutting. 3 marketer needs to study follo,ing parameters to kno, t+e product life cycle stage B

1. 2. 3. 4. '.

Sales rofits Customers Competitors Cost

Intro!&ct$on

"+is is t+e stage ,+en a product is launc+ed so a marketer kno,s t+at +is product is in in introduction stage. >uring t+is stage parameters s+o, follo,ing featuresB 1. Sales= roduct is ne, and t+e strategy of t+e marketer is to make more and more people try t+e product. "+e firm ,ill create product a,areness K develop a market for t+e product. Sales are very lo, as people are little appre+ensive in using a ne, product. 2. Prof$ts= rofits are lo, and for some product t+ey can /e even in negative. 3s sales are lo, and company is spending a +uge amount on promotion to inform potential customers. 3. C&sto"ers= Customers using t+ese products are innovators. 4. Co"pet$tors= Competitors are very fe, as t+is is a ne, market. "o /e t+e first one to launc+ t+e product +elps in long run as customer tend to trust t+e initiator. '. Cost= Cost per customer is +ig+ as promotion e&penditure is +ig+.

13

.ro0th "+is is t+e second stage of t+e #C it is marked /y +ig+ sales. In t+is stage marketer realizes t+at t+e product is valua/le to t+e customer and targets a +uge uncaptured market. arameters of t+is stage are as follo,B

1. Sales= Lig+ sales as /y no, t+e product gains confidence of early adapters and t+ey start /uying t+e product. 2. Prof$ts= In t+is stage profit rise as sales increase tremendously. 3. C&sto"ers= "+ey are early adopters. 4. Co"pet$tors= 3s market starts e&panding$ num/er of competitors gro,. Some competitors 5ust copy t+e most successful product or try to improve over t+e original product resulting in muc+ product variety. '. Cost= It reduces a /it as t+e demand for t+e product increases so cost /ecomes less per customer. Mat&r$t# "+e marketing mi& used /y t+e marketer in t+e previous stage pus+es t+e product in t+e ne&t stage of #C i.e. %aturity. "+is stage influences t+e parameters in t+e follo,ing ,ayB 1. Sales= In t+is stage t+e sales are initially at peak /ut t+e rate of gro,t+ of sales starts decreasing. So at a later stage of maturity t+e sales /ecome constant. >ecline in sales s+o, t+at maturity stage is coming to an end 2. Prof$ts= rofits are +ig+ initially /ut on a later stage t+ey start decreasing. "+is is due to promotion costs and price cuts /y competitors to attract more /usiness. "+us less efficient firms drop out of t+e market due to increasing pressure on prices. 3. C&sto"ers= %a5ority of target customer is using t+e product. 4. Co"pet$tors= ;um/ers of t+e competitors /ecome constant. Competition is toug+er due to t+e presence of aggressive competitors. '. Costs= Costs reduces per customers as in t+is stage a marketer s+ould sale in +ig+ volumes and lo,er margins to ma&imize t+e profit t+us reducing t+e cost. Decl$ne "+e decline stage is t+e last stage of t+e #C. "+is stage can /e identified /y t+e follo,ing c+anges in t+e parametersB 1. Sales= "+ey are declining in t+is stage. It /ecomes really difficult for t+e marketer to revive t+e sales or continue ,it+ t+e product. 2. Prof$t= rofits are declining in t+is stage as sales are diminis+ing. 3ll t+oug+ profits can /e optimized /y reducing t+e promotional e&penditure. 3. C&sto"ers= "+ey are t+ose people ,+o are innovators and use out of date products.

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4. Co"pet$tors= ;um/ers are declining as intelligent companies leave t+ese products and start concentrating on t+ose products t+at are in demand. Some companies completely ,it+dra, from t+e market. '. Costs= #o, cost per customer.

Chapter 4
The S1(T anal#s$s for S o!a Co"pan# S1(T Anal#s$s S(O" is stand for Strengt+s$ (eaknesses$ Opportunities and "+reats. Strengt+s can /e descri/ed as internal components of a /usiness t+at lead to its7 gro,t+. (eaknesses can /e identified as t+e attri/utes t+at ,ill make distur/ances /usiness or make t+e /usiness suscepti/le. "+e e&ternal conditions t+at could lead to future gro,t+ are kno,n as t+e opportunities in S(O". "+reats are descri/ed as t+e e&ternal elements ,+ic+ could make negative effects on a /usiness. "o recognize its strengt+s$ Skoda gat+ered information t+roug+ researc+es from /ot+ customers and also from t+e relia/le independent surveys. :or an e&ample$ annual F> o,er customer satisfaction survey +ad 1uestioned t+e ve+icle o,ners a/out t+eir feelings on t+eir ve+icle for last si& mont+s /y using 1uestionnaire for a/out 22$222 o,ners. 3ccording to t+e results Skoda dominated in t+e top five car manufacturers for last 13 years 8F> o,er 22129. ;ot only t+at$ in 222)$ "op 4ear7s survey revealed t+at among t+e 'A$222 vie,ers Skoda dominated as t+e num/er one car manufacturer 8"op 4ear 222)9. 3ccording to t+ose results$ Skoda found t+at t+e company e&celled at satisfying its customers ,+en focusing t+e o,ner e&perience rat+er t+an on sales alone. 3lmost all of Skoda7s customers ,ould recommend Skoda /randed ve+icle to ot+ers$ means t+at Skoda +ad a distinctive strengt+. 3s a result$ Skoda manufactured cars t+at t+eir customers could en5oy$ rat+er t+an simply ma&imizing t+e sales. "+erefore$ Skoda /randed t+emselves as a 1uality product t+at satisfies its customers. Skoda7s analysis s+o,ed t+at in order to gro, t+e /usiness re1uired to address issues a/out +o, t+e small company fit into t+e +ig+ly competitive market. 3n out=dated perception of t+e Skoda /rand$ related to t+e company7s !astern !uropean origins$ contri/uted to t+e /usiness7 small size. By 1000$ -olks,agen 34 o,ners+ip +ad c+anged t+is negative attitude a/out Skoda. But$ in 222A /rand Lealt+ C+eck revealed t+at t+e ,eak and neutral image in mid market range is still e&isting ,+en compare to t+e :ord$ eugeot and <enault like /rands 86.
15

Branding 222A9. "+oug+$ Skoda still deficient of a strong appeal$ it is realized t+at t+e company needed to reduce t+e defensive campaigns e&emplifying ,+at t+e /rand ,as not and /egin ne, campaigns illustrating ,+at Skoda +ad to offer. "+e c+ange ,as simple and Skoda kne, t+at its o,ners ,ere satisfied ,it+ t+eir cars. Skoda +ad realized t+at its rivals7 marketing approac+es are mainly focused on t+e product itself. But in contrast$ Skoda tends to focus its attention on emp+asizing t+e o,ner7s e&perience ,it+ t+eir cars and t+e customers7 satisfaction ,it+ Skoda ve+icles. "+is S(O" analysis may lead Skoda to distinguis+ its product from its competitors. Considering t+e 6. market$ t+ere are '2 different car makers selling around 222 ve+icle models. "o survive in t+is large and competitive market$ Skoda needed to ensure t+at its message ,ould not /e lost or dro,ned out ,it+in t+e cro,ded environment. 3s a result$ Skoda +ad manufactured seven different cars suc+ as city car$ lu&urious car$ and family car addressing different market segments ,it+ su/se1uent levels of pricing.

16

5'3 Concl&s$on (it+ t+e intensive study of t+e !S"#!$ t+e Skoda Company ,ill continue to emerge and develop if t+ey manage to find solutions in different c+allenges t+at t+e entire organization mig+t face in t+e future. Since t+e e&ternal environment is e&tremely comple& and dynamic it is important to conducting t+e !S"!# in a regular /asis. ractically$ it may not possi/le to identify almost all t+e significant c+anges in t+e /usiness environment. But$ still t+ey may a/le to find some of t+ose critical c+anges t+roug+ t+eir assumptions and t+at ,ill lead t+em to take t+e correct decision in t+e future. 3t present t+e !S"!# structure is furt+er e&panded as S"!! #! and S"!! #!> /y considering t+e et+ical and demograp+ic factors. "+erefore$ it may /e important to use t+is latest model$ /ecause in some /usinesses t+ose factors considered to /e critical. "o improve its performance$ it may /e needed to conduct a /rand positioning e&amination /y o/taining market researc+ data from /ot+ internal and e&ternal audits$ allo,ing Skoda to conduct a S(O" analysis. Skoda7s S(O" analysis may facilitate t+e company to reveal t+at customer satisfaction /y purc+asing t+eir products. ;ot only t+at$ it also reveals t+at t+e /rand ,as no longer seen as a poor$ outdated car$ t+e company ,as a/le to operate ,it+in a position in t+e market$ and t+at a c+ange in pu/lic perception ,as very important to Skoda7s a/ility to e&pand ,it+in a +ig+ly competitive market.

S(O" analysis makes t+e ra, information ,+ic+ may gat+ered from a survey in to an order t+erefore$ it may support managers to investigate /ot+ internally and e&ternally. "+erefore$ it may also +ig+lig+t t+e key internal ,eaknesses of a /usiness$ and also t+e strengt+s ,+at t+e management s+ould /e alert on t+eir /usiness. >epending on t+e S(O" and implement t+at ne, /usiness strategy ,it+out disrupting t+e /usiness. !S"!# analysis$ it is re1uired to implement a ne, /usiness strategy. "+e critical t+ing is to

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RE2ERENCES
F> o,er articles 2212B -e+icle dependa/ility study. +ttpBGG,,,.5dpo,er.comGautosGarticlesG 6. Branding pro5ectsB /rand +eat+ c+eck 222A. ,,,.uk/randing.comGpro5ects Buc+anan and Fames %. 810*A9 Liberty, Market and State: Political Economy in the 1980s .;e, Eork 6niversity ress. orter$ %. 822219 Strategie concurenMialM$ !ditura "eora$ BucureMti.

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