Porsche is a German automobile manufacturer that competes against BMW and Audi, but only in the sports car and SUV segments of the automobile market. Porsche utilizes a(n) ________ strategy.

Question

Quizplus · Accepted Answer

Porsche is using a focus strategy as they have chosen to compete only in the sports car and SUV segments. They are not attempting to be an overall cost leader or appeal to the masses (middle-of-the-roaders), but rather they are targeting a specific group of consumers who are looking for high-performance and luxury in their vehicles. They are also utilizing market segmentation by focusing on these specific segments of the automobile market. However, they are not necessarily creating a completely new market (a blue ocean strategy) as they are still competing with established brands in their chosen segments.

Porsche Is a German Automobile Manufacturer That Competes Against BMW