The Porsche Strategy
Almost a century after its founder started designing automobiles, Porsche is still going strong. That is the result of a premier cure for a mid-life crisis similar to Harley-Davidson.
Porsche's lineup includes four model lines:
- the Boxster
- the 911 models,
- the Cayenne SUV
- the Carrera GT.
If these vehicles are too expensive, Porsche also offers watches, luggage, and tennis rackets bearing its name. Descendants of the founding family still control the company and these days it has enlarged its area by offering consulting services to other companies involved in auto and furniture manufacturing, mechanical and electronic engineering, and construction.
Over the years, Porsche transformed itself from serious money-loser into one of the most profitable car companies in the world. All of this while other car manufactures toil over cash incentives, market share and strategies for the Chinese market.
Porsche has constantly rolled out new products and despite the costs and risks it has quadrupled its annual unit sales in just under a decade. The most recent debuts are the Boxster and the Cayenne. And so far, the key to their success seems to be the long product life cycle.
The company intends to maintain this strategy.