Published cases
The first years after Porsche had entered the Chinese market in 2001 turned out to be very unsatisfactory for Porsche with less than 100 cars being sold within the first three years. But with ambitious effort, the company incrementally managed to establish itself as the most-popular brand for high-end sports cars in China. Today, 15 years after the market entry, Porsche generates approximately half of its overall profits in China and more Porsche cars are sold on the Chinese market than anywhere else in the world. Recent developments, however, might pose a threat to Porsche’s current success in China, wherefore crucial strategic decisions have to be taken in order to preserve Porsche’s outstanding position in the market.The learning objectives of the case are to (a) provide reasons for Porsche’s poor start in China, (b) highlight the role of Porsche’s market strategy for its subsequent exceptional success, (c) underline the impact of China’s economic development on Porsche’s car sales, (d) understand the special characteristics of the Chinese premium and luxury car market and (e) analyze and assess changes in the Chinese car market that Porsche has to cope with.
SOM, A. (2017). 15 years Porsche in China. ESSEC Business School.