Swot Analysis of Skoda

Executive Summary The stupefy of this report is to illustrate the present situation of Skoda company in china auto securities labor place and the founding car market. By using trick out analysis, describing Skoda had done a successful work in mainland mainland mainland China. Evaluate the suitableness 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. IntroductionTwo 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 hard times which included war, political mixture and economic depression. The management of Skoda chose Volkswagen AG (VAG) as their strong foreign jockstraper at 1990 and the reason was VAG has strong reputation, reliabilit y and high quality.In addition, VAG is the largest 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 precise character and is independent in the market. ( chock up ANALYSIS SKODA, 2009) Latest Performance ? Skoda historical sales of world market model 2002 Weaknesses Threats Outdated infrastructure Competitors deviation same level products Not enough series of products Expensive non-renewable brawniness Less famous Increasing wages of killed workers Poor image comminute Analysis PESTLE stands for political, economic, social, technological, legal, environmental. PESTLE analysis is a tool that passel aid organization making strategies by helping them understand the outside(a) environment is which they operate now and will operate in the future,(PESTLE Analysis,2003) China ? Political Low price of the raw materials Low r estrictions of car sedulousness Various of policies support the car industry(Guo peng, 2010) ?Economic Economics of China is emergence fast while other counties is in economic recession, which helps people give the gate offer cars in their daily lives. ? Social China has a rattling stable society, which is helpful to the sales and the innovation of Skoda. ? Technological China governance has released some encouragement policies on car manufacture and car market development. This made the technology of making cars have a large of proceeds and it is suitable for Skoda to do the research and innovation. ? Legal China has a pure(a) 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 nil to 123 thousands a year and the numb er is still growing. Skoda shows a high level of quality, innovation, reliability 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 excerpt 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 archetypical 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