The rebirth of Skoda
A Skoda case study

Page 1: Introduction

This case study looks at the turn-round in the fortunes of Skoda which has come about through investment in new technology, management training, product development and effective marketing.The Skoda company began back in 1895 when Czech entrepreneurs, Vaclav Laurin and Vaclav Klement began making bicycles in the Czech town of Mlada Boleslav. They very soon expanded into motorcycle manufacture...
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Page 2: Changing the image

People who know about the motor industry, know about Skoda’s illustrious past. For the first half of this century Skoda was one of the world’s greatest marques. It was the manufacturer of some of the most prestigious cars available, such as the luxury Hispano-Suiza, it was a leader in motor car design and technical innovation and a pioneer in the new realm of motorsport. However, the...
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Page 3: Changing perceptions

How then has the public responded to the transformation at Skoda? Skoda clearly has a major task to change the public’s perceptions, which for many are still rooted in the past. The key to altering the public’s perception is making people aware of what is happening at Skoda with the company and the cars and to convey the company’s personality and strengths. Research has shown...
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Page 4: The UK market

Skoda has already made substantial advances in the UK and it is expected that this trend will gain increasing momentum now that consumers’ perceptions have started to change. With the launch of new products on the UK market, Skoda has engaged in extensive research to find out how perceptions of Skoda are changing in the mid-1990s. For example, research into the Felicia has shown that...
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Page 5: Research

In winning over potential buyers, Skoda has identified four groups, some of whom are more likely to buy than others:+++ ACCEPTORS “A good car, I will consider it/buy it” (owners & non-owners). + PERSUASIVES “I would not like to be the first to own one.” (non-owners) - CURRENT REJECTORS “They will have to improve further before I consider.&rdquo...
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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...
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