By:CostanzaHyerinAmosClara

Boston Matrix: Porsche

Background Information

Porsche Automobil Holding SE founded 1931

German Automotive company specializing in luxury high performance automobiles

Volkswagen AG owns a 49.9% stake

Awarded “most prestigious automobile brand” in 2006

Product Portfolio

Boxster

Cayman

911

Panamera

Cayenne

Boxster Information

Production started in 1996

Type: mid-engined, 2-door convertible, Roadster

Seen as quite pricey for a roadster yet cheap for a sports car

2340 units sold in china in 2009

Globally, sales dropped by 10.8 percent along with the Cayman in 2010

Prices inclusive of VAT

Boxter: 704 000

Black Edition: 821 300

Boxster S: 934 000

Spyder: 1 060 000

Competitors

BMW Z4 RMB 589 000 (retail price)

Audi TT roadster 565 000 to 708 000 (retail)

Mercedes Benz SLK-class from 598 000 to 861 000 (retail)

Cayman2-seater sports coupe derived from the boxster

Production started in 2005

Perceived as a “poor man’s 911”

Globally, sales dropped by 10.8% along with the Boxster in 2010

Prices inclusive of VATCayman 745 000

Cayman S 1 031 000

Cayman R 1 148 000

Competitors BMW M3 1 100 000 to 1 200 000 (retail)

Audi S5 998 000 (retail)

Audi TT coupe 519 000 to 662 000 (retail)

Chevrolet Camaro V6 500 000 (retail)

911

2-door sports “supercoupe”

One of the oldest sports coupe still in production

The Porsche “legend”, flagship model

Globally, sales dropped by 27.4% in 2010

Though the 911 has prestige in the “supercoupe” segment of the market, it is overshadowed by equal performances and cheaper prices of other car models.

Prices inclusive of VAT

911 Carrera 1 424 000

911 turbo cabriolet 2 785 100

CompetitorsAudi R8 RMB 2 328 000 (retail)

Mercedes Benz SL S AMG 3 628 000 (retail)

Mercedes Benz SL K AMG 2 568 000 (retail)

BMW M6 2 298 000 (retail)

BMW M3 1 200 000 (retail)

Aston Martin V8

Jaguar XKR

Panamera

Four-door luxury sedan

Produced from 2009

Though it overtook the Cayenne in sales in the US, it still fellbehind the Cayenne in China with 3833 units in 2010

Porsche’s second best selling model in China due to it being newly-launched as well as the popularity of chauffeur-driven sedans

Prices inclusive of VAT

Panamera 1 139 800

Panamera S 1 873 900

Panamera 4 1 237 300

Panamera 4S 1 977 800

Panamera S Hybrid 1 728 000

Panamera Turbo 2 577500

Panamera Turbo S 3 088 000

CompetitorsBMW 6 ,7 and M series

6 series prices from 1 082 000 to 1 186 000 (retail price)

7 series prices from 918 000 to 2 298 000 (retail price)

M series from 1 066 000 to 2 298 000 (retail price)

Audi A8

RMB 928 000 to 1 362 000 (retail)

Cayenne

Five-seat mid-sized luxury SUV

Manufactured since 2002

Doing remarkably well, China is largest market (over 9000 units sold during 2009-2010), making up 83% of Porsche China sales

Porsche’s best selling model

Doing remarkably well in a relatively saturated but highly growing market segment

Prices inclusive of VATCayenne 893 000

Cayenne S 1 497 000

Cayenne S Hybrid 1 396 000

Cayenne Turbo 2 097 000

CompetitorsBMW X-series

X1 RMB 358 000 (retail price) to

X6 ActiveHybrid RMB 2 168 000 (retail price)

Mercedes Benz

GLK350 Rmb598 000 to 689 000 (retail)

Audi Q7

Rmb 815 000 to 2 568 000 (retail)

Boston MatrixAlso known as the BSG matrix

Portfolio analysis tool, a comparative analysis of business potential and the evaluation of the market environment

Snapshot of current position, little predictive value

It assumes that market share gained leads to cash surpluses

Boston Matrix: Porsche

Cayenne

Panamera

911

Boxster

Cayman

Product Analysis: Cayenne

The Cayenne is Porsche’s rising star, with increasing market share within the rapidly growing China SUV market.

Porsche should focus on investments to sustain growth and increase leadership position

Porsche should try to maintain or improve the Cayenne’s position in the China SUV market until the market matures

Product Analysis: PanameraPanamera falls between being a rising star and a question mark due to the Chinese sedan market already being saturated.

However, the fast growth of the China sedan market presents opportunities for the Panamera to secure more market share

Same strategies as Cayenne, except Porsche should consider stealing market share from existing competitors through investing in promotion

Product Analysis: 911 The luxury supercar market in China is not highly saturated, though it does not experience as large a growth as the SUV and Sedan Market

911 is already an established Porsche model (Cash Cow)

Porsche should defend market share from new entrants and existing competition

Extend the product life cycle

Product Analysis: CaymanNeither a boxster nor a 911, the Cayman has seen reduced sales in China

It falls between being a Cash Cow and a Dog as it does not have a large market share in an already saturated Coupe market. However, existing sales do provide Porsche with revenue.

Porsche can consider investing to increase market share at the expanse of competitors through advertising or other methods

Product Analysis: BoxsterThe roadster does not have much popularity among the big-car loving China population

The Boxster falls between being a Dog and a Cash Cow as it has a moderate market share in the slow-growing roadster market in China

However, it might still benefit Porsche by having a place in a niche market in China as there will still be demand for small sports vehicles

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