Along with the rapid economic development, the automobile industry faced with unlimited opportunities. The consumption level improved constantly which stimulate the expanding speed of automotive industry. Recently, several brands similar to Skoda intend to position the target market as young people that pursue fashion but not with high income, this is a new market without a leading brand. Moreover, the new energy resources cars have the wide long term potential in this century. There are indications that the new energy automobiles turns out to be the essential issue which government encouraged in the future.
In the contemporary world, the auto industry has been among the more globally competitive areas. There are two main threats for Skoda. In the first place, with gas prices skyrocketing and public transport systems are maturing, the demands of cars become less in many countries which leads automotive industry into a depressed circumstance. Furthermore, since last year's global financial crisis, credit crunch and the impact of economic recession, the automobile's utilization ratio is dropping. After that, the greatest threat of Skoda is resistance from colleagues in the automotive industry. Comparing with Japanese cars, Skoda auto have long lagged behind Japanese competitors in terms of reliability and quality.
In summary, This Skoda SWOT analysis primarily involved identifying the favorable and unfavorable perceptions inside Skoda and demonstrating the opportunities and potential threats of this market in the external environment. It reveals how Skoda Auto redesigned its poor brand image to rebuild consumers’ impression, and addressed brand’s weaknesses of decreasing sales rate. Furthermore, it explored the unprecedented opportunities and challenges of Skoda Auto below the contemporary globalization trend.
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