Porsche Case Study Essay Example | Topics and Well Written Essays - 1250 words

Porsche Case Study - Essay Example Thus, in the mid 1930s, Porsche’s first car, the VW Type 60 was produced, and thereafter a plant dedicated to the production of the Volkswagen was opened in 1938, producing a series of Volkswagen brands such as the VW Beetle (Henderson& Reavis, 2009). Nevertheless, the brand Porsche found its way into the market exactly 3 years after the Second World War had ended, in 1948 where the brand came in form of a branded sports car, and by 1950, Porsche had managed to develop an assembly line that started rolling out its Porsche 356 series brand into the market (Henderson& Reavis, 2009). Another of the Porsche’s brands, which were introduced into the market much later was the Porsche’s Cayenne, the first of its brands outside the sports car market niche in 2003, and then the Panamera sedan which was released in 2005 (Henderson& Reavis, 2009). The major competitors of the Porsche Company brands are the Mercedes, which is closest in the profit margin per unit earning to Porsche, at $59,454 per unit of automobile sold compared to the Porsche’s profit margin of $91,974 per unit (Henderson& Reavis, 2009). The other major competitors to the Porsche brands is the BMW, the Audi and Volkswagen, whose profit margins per unit were much lower compared to those of Porsche. On the other hand, there were a few small competitors in the sports car manufacturing market, such the Maserati, Lamborghini and Ferrari, which could not compete effectively with Porsche, owing to their low production capacity for the sports cars (Henderson& Reavis, 2009). In relation to the competition in the outsourced Engineering services, Lotus Engineering was the major competitor that Porsche Engineering Services (PES) faced (Henderson& Reavis, 2009). The financial position of Porsche Automobile group has been very promising, owing to the fact that the company has been able to