Chapter 1. IS in Business

by Sarah S

Porsche is one of the most famous German premium sports cars around the world. The man behind this company is Wendelin Wiedeking who becomes the CEO at Porsche in 1993. In an interview he gives us some answers how he keeps his company so profitable and recognizes where his business focus lies.

Porsche has got five different models but they all focused on one character – sporty cars. In the past Porsche was mostly known for sports-car maker. But with the Cayenne they also built a larger car for Families but still with a sporty character. With the Carerra GT they entered the market for super sports cars and where surprised to come before the competition. Its brand new Panamera model came in third place in the “Large Premium Car” category. Their secret to be successful lies in being a hard worker, have the foresight to develop future projects and offer new cars at prices and conditions where large companies have problems to achieve that. So they still have competitors like BMW or Mercedes but Wiedeking says that: “Porsche competes in their own niche with companies that aren’t making money on their products”. So he is convinced that only a brand that makes money can survive.

I choose this article because it shows one of the three generic strategies by Porter´s. He explains two different competitive scopes: a broad market and a narrow market. Porsche is not a car for everyone because it is quite expensive and not useful for families, expects the Cayenne. It is a luxuries car with high technology and their target audiences are mostly people with higher budgets who are willing to pay money for more fun while driving. So they provide just a narrow market with the sport-cars.

I took this example of Porsche because I like that car a lot. I like the way how they be aware of the smallest details in the car. They don´t produces masses of different cars just to stay in competition and offer low price cars. No it seems that they know what they are doing and following straight on their main vision – sporty cars with quality.

Posted by: Sarah Strassburger

Reference: http://www.businessweek.com/magazine/content/03_51/b3863085_mz054.htm