SWOT analysis of Skoda

SWOT analysis of Skoda – Skoda SWOT analysis: SkodaAuto is a Czech Republic-based manufacturer of passenger cars. Since its inception in 1895, the company has been synonymous with sedans. The most popular models that the company sells are Citigo and Octavia. Rapid, Karoq Kodiak, Superb and Superb.

In 1991, Skoda was acquired by the Volkswagen Group. It is now a fully-owned subsidiary of the auto giant. Through an annual production of 1,127,700 units, the company recorded a revenue of CZK 3348 billion. For the past few years, the company’s most popular brand has been the Skoda Octavia. It was re-engineered with a new engine as well as an automatic DSG auto-transmission in 2016.

Skoda’s technical expertise and experience allow it to launch more innovative and performance-oriented vehicles. Skoda is looking forward to participating in the electric and hybrid card segment. The company has also been researching autonomous vehicles and smart driving options.

Skoda fun facts: Skoda has also got a great line up of engines. The company offers best in the segment 1.0-litre TSI petrol engine which can churn out 108hp of power and 175Nm of torque. Skoda is still known for its 2.0-litre turbocharged petrol engine which is known it one of the most powerful at the time it was launched.

About Skoda – SWOT analysis of Skoda

SWOT analysis of Skoda

[wp-svg-icons icon=”office” wrap=”I”] Company : Skoda Inc.

[wp-svg-icons icon=”user” wrap=”I”] CEO: Klaus Zellmer

[wp-svg-icons icon=”user” wrap=”I”] Founder: Václav Laurin

[wp-svg-icons icon=”calendar” wrap=”I”] Year founded: November 20, 1990, Mlada Boleslav, Czechia

[wp-svg-icons icon=”location-2″ wrap=”I”] Headquarters: Mlada Boleslav, Czechia

[wp-svg-icons icon=”stats” wrap=”I”] Annual Revenue: € 16.559 billion

[wp-svg-icons icon=”bars” wrap=”i”] Profit | Net income: €1.274 billion

[wp-svg-icons icon=”users” wrap=”I”] Number of employees : 32,985

[wp-svg-icons icon=”pie” wrap=”i”] Products & Services: Automobiles, Electric vehicles

[wp-svg-icons icon=”globe” wrap=”I”] Website:  www.skoda-auto.com

Skoda Competitors

[wp-svg-icons icon=”pacman” wrap=”I”] Competitors: Honda | Toyota | Nissan Motors | Chevrolet | Fiat | Mitsubishi Motors | Maruti Suzuki | Tata Motors. | Volkswagen | General Motors | Tesla

SWOT analysis of Skoda – Skoda SWOT analysis

SWOT analysis of Skoda

SWOT Analysis Of Skoda is brand-based. SWOT Analysis of Skoda evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Skoda‘s SWOT Analysis. Below is the detailed SWOT Analysis of Skoda.

Strengths of Skoda – Skoda SWOT analysis

The strengths of a business are the best operations that it does, which can help it gain an advantage over its competition. These are Skoda’s strengths:

  • Unique styling: Skoda cars are distinguished by their unique styling. They look sharp from every angle. Skoda Superior, for instance, uses the Vision C design concept. It has a balanced look and sporty styling. Octavia is a sleek and racy design. Each car is unique and has its look. Their cars are also built to a higher standard than the rest.
  • Support from Volkswagen:  Skoda Auto is a pioneer in innovation and technology. Their tagline “Simply Clever”, explains the features each car has. Skoda has now benefited from the experience and research of a larger company like Volkswagen. This is evident in the features-rich cars they have released since then.
  • Customer Relationship: Skoda is well-known for its excellent after-sales service and customer relationship management. They consistently top various surveys that measure customer satisfaction. Some of their top areas include the initiation and conduct of salespeople.
  • Comfort and luxury driving: Skoda cars are affordable for those who can’t afford a luxury car.

Weaknesses of Skoda – SWOT Analysis Of Skoda

These are areas in which the brand or business is lacking. Skoda’s key weaknesses:

  • Low presence in value segments: Skoda is not present in certain value segments, such as hatchbacks. These are the money-spinners for many players in emerging economies.
  • Poor distribution channels: Skoda and Volkswagen have not been able to reach rural and local markets in countries like China or India. They mainly target urban and semi-urban customers. This is because they are unable to expand their distribution channels to reach remote areas.
  • Pricing Skoda was unable to match the price of local players such as Maruti Udyog in India, who continue to dominate the market with economical cars in all segments. This is due to localization.
  • Perception: Skoda has been perceived as an expensive brand. It is also considered to be a major player in the premium car segment. Although they tried to position themselves as a luxury brand that is valued, they are still unable to reach the mass market.

Opportunities of Skoda – Skoda SWOT analysis

Opportunities are those opportunities in the Environment around the business that can be used to increase its returns. These are some of the possibilities:

  • High potential for small cars In most cities, people choose to purchase compact cars due to increased traffic congestion and poor driving conditions. This will increase the demand for smaller cars such as hatchbacks and convertibles. Skoda may not have many options in this area, so the company might need to take this segment more seriously.
  • Transition customers: In emerging economies like India, there are a lot of customers who want to shift from sedans and SUVs to lower-end luxury cars. These customers are rising in the social strata, and are more quality-conscious and less price-conscious. Skoda must focus on this group of customers if they want to continue purchasing from them.

Threats of Skoda – SWOT analysis of Skoda

Threats are factors that can harm the growth of a business. These are some of the potential threats:

  • Competition: The company is up against brands like Honda, Toyota, and Nissan as well as regional players like Maruti India.
  • A competitor launching cheaper products. This made Skoda lose its market share again.
  • Skoda needs a strong product range to compete in India and also globally

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Skoda is an international brand distributing goods in an extremely high competitive market. Every company has the right to respond on time to save their sales and profit in the market. Because Skoda won a lot of awards for producing quality automobiles. They also increased their assets gradually by focusing on customer satisfaction.

This is the SWOT analysis of Skoda. Please let us know if you have additional suggestions to add.

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