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Saab Strategy Report

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Strategy Context Report
Module: Bus 302

Industry Context Report

Executive Summary
This report complies the analysis of the new strategy for Saab Automobile following its acquisition by Spyker Cars. The report attempts to assess this strategy and its potential success with an evaluation and analysis of the industry, strategy, macro environment, competitive advantage and sustainability of the competitive advantage. Various frameworks were applied in this report, including Porter’s 5 Forces, Strategic group analysis and VRIN analysis. Findings show, that Saab’s new strategy is based on some of the company’s strongest resources, the Brand, technology and expertise in design. This is particularly important as the …show more content…

In terms of its operational performance Saab has managed to improve since the Spyker take-over (in early 2010). The number of cars sold increased by 15% from 2009 to 2010 while the number of cars produced improved by 53% in the same time. Therefore Saab was able to re-stock the inventories of dealers that were running low, especially in the US (Saab, Saab Automobile sees, 2011). This shows that the company is on the way to a viable company and has the potential to expand further in the upcoming years. However, an issue of up-most importance is the dealing with the large debt obligations that Saab has accumulated. The figure of net working capital of € -220 million illustrates the severity of the financial situation and the cost of new capital, meaning it will be very difficult and costly for Saab to obtain further funds which are needed to implement their strategic decisions (Spyker cars N.V., 2011) .

European Business School, London

Hélène Gallardo | Yana Todorash | Albrecht Von Krochow | Roman Siena Schilling

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Industry Context Report

Industry Context
Europe car manufacturing industry volume: Thousand units

Source: Datamonitor

The car industry in Europe is a very competitive environment. Even though some analysts argue that it is a saturated market where no significant growth will take place anymore, the growth figure of 11.2% from 2009 to 2010 in terms of market value implies that there is still significant

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