General presentation of Porsche :
The Porsche Group is a German group specialising, as you probably know, in the design, production and marketing of sports, luxury and racing vehicles. More generally, the turnover achieved by this company comes mainly from the sale of automobiles, but also partly involves the provision of services such as sales financing or insurance, and the sale of spare parts and accessories for its vehicles.
Of course, the Porsche Group is reaching an international market with, however, more activity in Europe and of course in Germany.
Know the competition of the Porsche share :
The Porsche group is a car manufacturer specialising in the design and production of luxury cars. As such, it faces little but ingenious competition to gain market share in this highly prized sector. It is therefore essential to know the main competitors of the Porsche group if you plan to trade its shares on the stock market. Indeed, depending on the evolution of the results of each of these companies, the price of the Porsche share is likely to rise or fall. Here is the ranking of the world's biggest luxury car sellers in 2016 according to turnover:
- Aston Martin: with more than 4,000 vehicles sold per year.
- Bentley: with 10,100 vehicles sold per year.
- Bugatti: which is in third place.
- Ferrari: with 7664 cars sold in 2016.
- Jaguar: with 83,986 cars sold in 2016.
- Lamborghini: with 3245 cars sold per year.
- Maserati: with 45,000 vehicles per year.
- McLaren: with 1,645 vehicles sold.
The strategic alliances set up by the Porsche group :
The Porsche Group also owes its success and reputation to the various partnerships it has been able to establish and maintain over the years.
- ExxonMobil: This is particularly the case with the partnership set up more than 20 years ago with the ExxonMobil group for the research and development of innovative motor oils. To celebrate this anniversary, they have renewed their partnership for another five years until 2021.
- Adidas: Porsche also partnered with Adidas to create a product line in 2005.
- Microsoft: Finally, Microsoft has also been a partner of Porsche for its Forza game since 2017.
Advantages and strengths of the Porsche share as a stock exchange asset:
First of all, the Porsche Group naturally enjoys an excellent reputation and a strong brand image. Indeed, over time, this group has made a name for itself in the very privileged world of luxury cars and its brand is now known throughout the world. To achieve this goal, Porsche has based its strategy on its presence in motor sports but also on a certain respect for the motoring tradition. The vehicles produced by the group are considered both top-of-the-range and powerful.
Although the number of vehicles offered by the Porsche group is relatively small, the possibilities of declining these different vehicles with numerous options and extensions are nevertheless appreciated. Thanks to these few models, Porsche also manages to position itself in different segments such as SUVs, sports cars or luxury sedans and thus reaches different types of customers.
As briefly explained above, the Porsche Group is also a reference in the world of sport and more specifically in the field of motor racing. The Porsche brand is also the strongest brand in this field thanks to the quality of its vehicles. It should be noted here that the brand also has a line of production machines entirely dedicated to motor racing. Some models of cars dedicated to this sport and of the Porsche brand have moreover become true emblems of motor sports and are adored by motor sport enthusiasts.
This brings us to another of Porsche's strengths, which is its fan base. After all, Porsche is not only a luxury car brand for high-end customers, but also a brand that appeals to all lovers of beautiful cars. Although not all fans of the brand are real customers, they contribute to the brand's continued existence and popularity around the world.
Finally, the last asset that the Porsche Group has is undoubtedly the employee base it has at its disposal. Thanks to more than 12,000 qualified employees, Porsche benefits from an efficient technical and managerial basis to produce more efficiently with regular improvements to the vehicles produced.
Disadvantages and weak points of the Porsche share as a stock exchange asset :
First of all, the fact that the Porsche Group's products are very expensive is of course a significant brake on its growth. The vehicles of this brand are in fact designed for a very specific segment of the population, i.e. the wealthiest consumers. This is causing sales to become increasingly weak as the economic crisis reduces the number of potential customers for this type of very high-end car. However, Porsche is not currently seeking to develop further in the mid-range segment and is maintaining its strategy in the luxury segment, which could harm its future revenues.
Finally, the second and last weak point of this company also concerns the cost, but this time the maintenance cost of the vehicles produced by Porsche, which represents another brake on sales. Indeed, compared to other competing models of luxury and sports vehicles, Porsche models are more expensive to maintain . In addition, each new model of Porsche vehicle put on the market presents increasingly higher operating and maintenance costs, while the trend is more towards economical and ecological vehicles, even in the luxury sector.
As you can see, the weaknesses of the Porsche group are far less numerous than its strengths and concern above all the price of the vehicles. However, the weight of these weaknesses can prove to be important when investors make their decisions.