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Case Study

Turbocharging growth at Skoda Auto

By Z. Jan Kubes and George Rädler

26 pages

July 2005

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Reference: IMD-3-1549

With Skoda Auto winning many prestigious awards in the European car industry, it became a threat to established players. And a real success story from Eastern Europe. By 2004, the company from the Czech Republic reached a record export level of 86%. The cars were sold in 85 countries and at the same time, Skoda Auto wired a dividend of €96 million to its parent company, Volkswagen AG.For Detlef Wittig, who took over as CEO of Skoda Auto in late 2004, the challenge was to put Skoda Auto onto a growth path. The company announced plans to increase sales from 450,000 in 2004 to 600,000 by 2008 and eventually to 1 million units by 2015. This was equivalent to a growth rate of 12% p.a. This was an ambitious goal by any measure. For Wittig, the question was how to prepare the company for this rapid growth. Should he develop low-cost models for developing countries? How should he react to competitors setting up new production facilities in the Czech Republic? The environment proved to be hostile with overcapacity leading to price rebates in Europe. The case puts the readers in the situation of Mr. Wittig. After becoming a successful player in Europe, he had to manage the expansion overseas while defending market share in existing markets.

Keywords

Accelerating Growth, Expansion, Growth, Industry Structure, Internationalization, Transformation, Automotive

Settings

Czech Republic
Skoda Auto, Automotive, Automotive, Automobiles
2005

Type

Field Research

Available Languages

English

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This case study is part of a series

Skoda Auto: From no-class to world-class in one decade (Revised)
Turbocharging growth at Skoda Auto

This case study is part of a series

Skoda Auto: From no-class to world-class in one decade (Revised)
Turbocharging growth at Skoda Auto

Skoda Auto: From no-class to world-class in one decade (Revised)

By Z. Jan Kubes and George Rädler
Case reference: IMD-3-0910 ©2003

Summary

Skoda Auto is one of the oldest car brands in the world. Prior to its nationalization in 1946, the company was one of the technologically most adva...

Reference IMD-3-0910

Organization Skoda Auto

Industry Automotive;Automotive, Automobiles

Available Languages English

Contact

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Turbocharging growth at Skoda Auto

By Z. Jan Kubes and George Rädler
Case reference: IMD-3-1549 ©2005

Summary

With Skoda Auto winning many prestigious awards in the European car industry, it became a threat to established players. And a real success story f...

Reference IMD-3-1549

Organization Skoda Auto

Industry Automotive;Automotive, Automobiles

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

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