Page 6: Conclusion
The Skoda case study provides us with an object lesson in how an organisation can transform itself. Until 1990, Skoda was able to prosper because it had a protected domestic market and a product which did not face competition.
Once the Czech Republic opened its borders to free competition, there was no way the company could survive, without radical changes to its products and organisation: it would have been forced out of business. However, Skoda was fortunate to have good production facilities, a highly skilled labour force and the technical know-how which, coupled with a rapid injection of management expertise and finance from Volkswagen, has enabled it to move ahead. Skoda continues to supply the major share of new cars at home in the Czech Republic, despite competition from imported marques. It also meets an important consumer requirement in other European markets for high quality cars at affordable prices.
The Skoda Felicia has strengthened the Skoda image with existing customers and improved it amongst consumers as a whole and as a result has brought new customers to the Skoda brand. In particular there has been a marked expansion in the number of young people and females buying the car, as well as those in middle management positions. The old jokes about Skodas are rapidly fading into “folklore” as more and more Felicias are seen on the roads. People who at one time might have laughed at a Skoda joke are today purchasing their first Skoda.