TRANSFORMATION CASE STUDY SOLUTION
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SYNOPSIS
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Porsche, a highly profitable automotive manufacturer, launched its first fully electric sportscar, the Porsche
Taycan, in 2019. While the company was committed to electrifying its portfolio, the adoption rate of electric
vehicles varied greatly across different regions due to issues with charging infrastructure and government
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support. Additionally, Porsche’s branding and activities in motorsports and heritage remained heavily
reliant on combustion engines. To address these challenges, Porsche was considering research and
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development related to eFuels, a liquid substance that could potentially be near-carbon-neutral and possess
the same characteristics as traditional fuels.
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OBJECTIVES
• Apply basic and key concepts of business strategy.
• Perform a systematic evaluation of an industry and industry environment.
• Apply basic frameworks to identify the competitive positioning and advantage systematics of a company.
• Develop an understanding of different growth strategies.
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ASSIGNMENT QUESTIONS
1. Analyze the macro- and micro-environmental factors that Porsche is facing.
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a) What technological changes, socio-political or other dimensions influence the strategic choices of
Porsche?
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b) In which competitive environment is Porsche acting? How do its competitors and other
stakeholders shape the positioning choices for Porsche?
2. Evaluate the position of Porsche within the automotive sector. How does the company build competitive
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advantage? Which resources and capabilities is the sports car manufacturer seizing?
3. What strengths, weaknesses, opportunities, or risks do you identify? Which strategic options can
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Porsche develop out of this analysis?
4. Summarize the growth strategy of Porsche into the alternative fuels sector.
c) Which decision should the company make and why?
d) And what would you recommend for the further engagement of Porsche? Should Porsche stay in
its role as investor and partner? Or rather shift to producing and developing eFuels?
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, ANALYSIS
External Analysis
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1. Analyze the macro- and micro-environmental factors that Porsche is facing.
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The students should already be familiar with the distinction between macro- and micro-environmental analyses.
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To expedite and intensify the discussion, it could be briefly considered which framework best suits the
classification of the individual approaches and why (political, economic, social, technological, environmental,
and legal (PESTEL) or Porter’s Five Forces).
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a) What technological changes, socio-political or other dimensions influence the strategic
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choices of Porsche?
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PESTEL Analysis (Macro-Environment)
• Political environment
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o Commitment of key nations to E-mobility
o Rising nationalism in key and other nations of the automobile market
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o Considerable tensions between the US and China as two political/economic poles of the world and
– at the same time – as key volume markets of Porsche
o Ukrainian-Russian war leading to a total stop of vehicle sales in Russia since 2022
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• Economic environment
o Economic uncertainties with prior crises (e.g., banking and finance crisis in 2008, COVID-19
• Social environment
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