SWOT analysis in action
A Skoda case study

Page 1: Introduction

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In 1895 in Czechoslovakia, two keen cyclists, Vaclav Laurin and Vaclav Klement, designed and produced their own bicycle. Their business became Skoda in 1925. Skoda went on to manufacture cycles, cars, farm ploughs and airplanes in Eastern Europe. Skoda overcame hard times over the next 65 years. These included war, economic depression and political change. By 1990 the Czech management of...
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Page 2: Strengths

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To identify its strengths, Skoda UK carried out research. It asked customers directly for their opinions about its cars. It also used reliable independent surveys that tested customers' feelings. For example, the annual JD Power customer satisfaction survey asks owners what they feel about cars they have owned for at least six months. JD Power surveys almost 20,000 car owners using detailed...
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Page 3: Weaknesses

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A SWOT analysis identifies areas of weakness inside the business. Skoda UK's analysis showed that in order to grow it needed to address key questions about the brand position. Skoda has only 1.7% market share. This made it a very small player in the market for cars. The main issue it needed to address was: how did Skoda fit into this highly competitive, fragmented market? Perceptions of the...
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Page 4: Opportunities and threats

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Opportunities Opportunities occur in the external environment of a business. These include for example, gaps in the market for new products or services. In analysing the external market, Skoda noted that its competitors' marketing approaches focused on the product itself. Many brands place emphasis on the machine and the driving experience: Audi emphasises the technology through its strapline...
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Page 5: Outcomes and benefits of SWOT analysis

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Skoda UK's SWOT analysis answered some key questions. It discovered that: Skoda car owners were happy about owning a Skoda the brand was no longer seen as a poorer version of competitors' cars. However: the brand was still very much within a niche market a change in public perception was vital for Skoda to compete and increase its market share of the mainstream car market. The...
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Page 6: Conclusion

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Skoda is a global brand offering a range of products in a highly competitive and fragmented market. The company must respond positively to internal and external issues to avoid losing sales and market share. A SWOT analysis brings order and structure to otherwise random information.  The SWOT model helps managers to look internally as well as externally. The information derived from the...
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