Swot Analysis of Skoda

Executive Summary The aim of this report is to illustrate the present situation of Skoda company in mainland china car market and the world car market. By using SWOT analysis, describing Skoda had done a successful work in mainland China. Evaluate the suitability of China as a foreign market for Skoda and its product cars and Skoda may stay in China for more development. This will be assessed in the PESTEL analysis. Introduction both young men, Vaclav Laurin and Vaclav Klement, started to designed and produced bicycle in Czechoslovakia in 1895. 30 years later, the small factory became Skoda which went on to produced farm ploughs, cars, airplanes and bicycles in Eastern Europe. Between 1925 and 1990, Skoda overcame firmly times which included war, political change and economic depression. The management of Skoda chose Volkswagen AG (VAG) as their strong foreign partner at 1990 and the reason was VAG has strong reputation, dependability and high quality.In addition, VAG is the large st car manufacturer in Europe, which taking 12% share at the world market by providing more than five million cars a year. Volkswagen AG comprises seven different car brands and each brand has its own specific character and is independent in the market. (SWOT ANALYSIS SKODA, 2009) Latest carrying out ? SkodaHistorical sales of world market model 2002 Weaknesses Threats Outdated infrastructure Competitors release same level products Not enough series of products Expensive non-re rude(a)able competency Less famous Increasing wages of killed workers Poor image PESTLE Analysis PESTLE stands for political, economic, social, technological, legal, environmental. PESTLE analysis is a tool that can wait on organization making strategies by helping them understand the external environment is which they operate now and will operate in the future,(PESTLE Analysis,2003) China ? Political broken price of the raw materials Low restrictions of car industry Various of policies s upport the car industry(Guo peng, 2010) ?Economic Economics of China is growing fast while former(a) counties is in economic recession, which helps people can offer cars in their daily lives. ? Social China has a very stable society, which is helpful to the sales and the mental home of Skoda. ? Technological China government has released some encouragement policies on car manufacture and car market development. This made the technology of making cars have a large of improvement and it is suitable for Skoda to do the research and innovation. ? Legal China has a complete legal system which can protect the company well. environmental China government has done many things to ensure the supply of petrol. This would also help the car sales. Conclusion In Conclusion, Skodas overall performance in China is excellent. In these four years, it has a great improvement of sales from zero to 123 thousands a year and the number is still growing. Skoda shows a high level of quality, innovatio n, dependableness and service. However, it still has to work on the weak areas. In China, Skodas market share is still not large enough and the government gives a great environment for the car industry. Therefore, it would be a better choice for Skoda to stay in China.References Guo peng. (2010). PESTLE Analysis of China car industry http//wenku. baidu. com/view/b771d4335a8102d276a22f12. html. Viewed 6/8/2010 PESTLE Analysis. Renewal Associates. 2003 http//www. renewal. eu. com/resources/Renewal_Pestle_Analysis. pdf. Viewed 5/8/2010 Skoda in China sales over 83 thousands in the first half of 2010. (2010). Homepage Skoda Auto http//www. skoda. com. cn/skoda/pages/data/new/news_20100721145609_000000000707. jsp. Viewed 5/8/2010 SWOT ANALYSIS SKODA. Yogin Vora on August 6, 2009 http//managementfunda. com/swot-analysis-skoda/. Viewed 6/8/2010