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Question:
Perform a strategic analysis for Jaguar in the context of the international market for luxury cars Recommend a suitable strategy(ies) for Jaguar
Strategic Planning
Basic Planning Process
Missions and Goals External Analysis - Opportunities and Threats Internal Analysis - Strengths and Weaknesses Selection of Appropriate Strategies
Implementation of Strategies
SWOT Analysis
Strengths: Quality/culture identity History of culture (Pre-BL Years) Image of luxury Re-entry into international car races Upgraded distribution channels Arrangement with SEIBU
SWOT (Contd)
Weaknesses: Small car range Engineering/R&D disadvantage UNION problems Dealership network in Germany Jaguar unable to radically alter design No economies of scale
SWOT (Contd)
Opportunities: Economic growth Japanese market opening up New technology readily available US$ exchange rate vis--vis DM
SWOT (Contd)
Threats: Competition from Mercedes, Porsche & BMW Japanese may try to enter market Substitutes - what is a luxury car? US$ exchange rate fluctuations US legislation Governments golden share Environmental pressures
Sum Up Strengths
Jaguar successfully recreated quality culture Jaguar taken on market orientation - customers paramount Egans heart and minds approach - increased productivity Jaguar upgraded distribution channels in various countries Features in Jaguar cars not found in German makes image of luxury
Sum Up Weaknesses
Distribution channel in Germany Smaller range of vehicles compared to competitors Could not radically alter vehicle design as this would damage luxury reputation (fuel efficient, more aerodynamic, green cars) UNION problems with 11 unions - hence affects productivity
Some Ratios
Jaguar appears to generate enough profits to fund market development; Profits before tax increased 685% from 1980-1987 However, current and acid test ratios low (1.75 & 1.02) Low debt to equity ratio (25% in 1987) Jaguar in a good position to attract loans for market development