Boston Matrix: Porsche

By: Costanza Hyerin Amos Clara

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)

Cayman
2-seater sports coupe derived from the boxster Production started in 2005 Perceived as a poor mans 911 Globally, sales dropped by 10.8% along with the Boxster in 2010

Prices inclusive of VAT

Cayman 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

Competitors
Audi 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 fell behind the Cayenne in China with 3833 units in 2010 Porsches 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

Competitors
BMW 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 Porsches best selling model Doing remarkably well in a relatively saturated but highly growing market segment

Prices inclusive of VAT

Cayenne 893 000 Cayenne S 1 497 000 Cayenne S Hybrid 1 396 000 Cayenne Turbo 2 097 000

Competitors
BMW 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 Matrix
Also 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 Cayman

Boxster

Product Analysis: Cayenne

The Cayenne is Porsches 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 Cayennes position in the China SUV market until the market matures

Product Analysis: Panamera

Panamera 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: Cayman

Neither 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: Boxster

The roadster does not have much popularity among the bigcar 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

References

http://www.bmw.com.cn/ http://www.mercedes-benz.com.cn http://www.autoexpress.co.uk/news/autoexpressnews/251209/bentley_introduces_china_specials.html http://www.newcarsinfo.com/tag/chevrolet-camaro-china-price/ http://www.audi.com/cn http://www.total911.com/news/porsche-sales-figures-are-up-but-what-of-the-911/ http://porschebahn.wordpress.com/2011/02/28/record-sales-for-porsche/ http://ezinearticles.com/?The-Porsche-Cayman&id=5736524 http://reogcars.com/search/porsche-boxster-china-sales-2010/ http://www.autoevolution.com/news/porsche-sales-explode-in-china-in-2010-30247.html http://www.allreleasedates.co.uk/post/2011/01/02/2011-Porsche-Cayenne.aspx http://en.ce.cn/Insight/201001/25/t20100125_20860157.shtml http://www.chinadaily.com.cn/bizchina/2011-04/22/content_12376087.htm http://www.chinadaily.com.cn/business/2010-01/04/content_9258521.htm http://www.4wheelsnews.com/porsches-china-sales-rise-63-in-2010-thanks-to-the-cayenne-suv/ http://www.jingdaily.com/en/luxury/porsche-sales-in-china-jump-nearly-50-in-2010/ http://europe.autonews.com/apps/pbcs.dll/article?AID=/20110128/ANE/110129843/1131 http://www.uscib.org/index.asp?documentID=1676 http://cars-u.com/mercedes-benz-e-class-sedan-heads-china.html www.wikipedia.org http://www.chinadaily.com.cn/business/2010-01/04/content_9258521.htm