The Current State of Skoda’s Business in the Uk

Introduction Skoda, as a car maker with a long history, has become one of the companies of Volkswagen who is the largest fomite manufacturer in Europe since 1991 (Volkswagen, 2012). There is a fast development of Skoda in upstart years. Its deliveries to customers in 2011 increased by 15. 3% compared to 2010 (Skoda, 2012). This report aims to evaluate the true situation of Skoda in the UK using the attire analysis. analyze the transmission line purlieu of Skoda in the UK by using the PESTLE analysis in detail. clear the possible strategies for Skodas future development based on the analysis.Company Overview With twenty dollar bill years development supported by Volkswagen, Skoda achieved a unsanded superior record of sales for 45282 vehicles in the UK, which occupied over 5% of the undivided sales volume of the brand. In the market of the UK, Skoda has launched seven models, namely Citigo, Fabia, Roomster, Rapid, Octavia, vivid and Yeti (Skoda, 2012). SWOT analysis Both strong and weak points of the business situation about Skoda in the UK can be seen in the SWOT analysis (see appendix I). The most obvious strength is the contentment provided to customers.Skoda has been doing life-threatening job on improving their ingatherings and services to meet customers demands. The company surveys their feelings and opinions at present to get the correct needs of customers. At the same time, most chances talent be taken by Skoda to further sales. Focusing on the vehicle itself as the marketing strategy, Skodas competitors leave the lacuna to Skoda to focus on happy Skoda customers. It avoided the direct competition focusing on the product itself with opposite rivals and became the unique selling proposition of Skoda in the vehicle market (Times, 2008).In contrast, there are still some persistent weaknesses and threats of Skoda. One weak point, for example, is the disal commencement effects from the image of poor part, design, assembly, and materi als in the past. Although Skoda had tried to make umpteen efforts to make the brand image better, it was proved to fail in the mid-market shed by a brand named Health Check. Meanwhile, the threats for Skoda are 50 several(predicate) car makers selling 200 models in the UK. That way there is a highly competitive market in the UK, potential buyers would overlook Skoda.Informing the customers effectively and developing potential customers are the challenges for Skoda (Times, 2008). PESTEL analysis There are sixsome parts of PESTLE analysis about business environment in the UK which focus on the external elements, namely, semipolitical, economic, social, technological, legal and environmental factors. Some changes of political element, such as raising the VAT, are made by the UK politics to increase the cost of buying cars. Plus, the UK customers are encouraged by British government to buy cars which are environmentally friendly because the road value will be discreditd if de al have small engines cars.That means the vehicle with smaller engine will tempt to a greater extent customers receivable to the financial reason. At the same time, the British car industry is affect by the economic recession. There is slight demand which leads to fewer sensitive vehicles being sold. People prefer to buy second hand cars kind of of new cars because of the low price. The economic factors are more essential than the quality and design of cars because low consumption of new car means less profits the companies can gain (Gough, 2012).For the social element, the lifestyle changes of consumers may learn the design of a vehicle. Many bigger seats and larger space are provided in the cars for meeting the requirements of the growing number of obese people in the UK. In addition, the development of technology is a chance for companies to reduce production cost. Advertising their products widely on the Internet will attract more potential buyers. There might be some new legal limitations of driving cars in the future. The speed limits may be considered more to ensure the citizens safety.Finally, the environmental issues, for instance the global warming, will be the pressure of vehicle manufacturers. They have to think about how to reduce the pollutant discharge to be responsible for their society (Gough, 2012). Future strategy Two chief(prenominal) suggested approaches aiming to solve the challenges of Skoda according to SWOT and PESTLE analyses are as follows present a lot on promotion. Such as advertise their product on Internet and TV for informing UK customers the high quality and low price of the cars to change the bad brand image. Expand the model cranial orbit for meeting different demands of British customers to increase the market share in heavy competition. Conclusion and Recommendations It can be found that the high satisfaction and high quality with low price are the strong points of Skoda. Although some weak points exist, they ca n be solved by advertising of corpulent the high quality and expanding the range of model to gain more British customers. In summary, Skoda should overcome the negative effects by using its advantages to boost sales and increase market share in the UK.