Chapter 11: Developing and Managing Products

The auto industry, like the tech industry is subjected to a increasingly rapid rate of change. From trends like smart phone connectivity to mechanical advancements like dual clutch transmissions. In order for companies like Porsche to stay competitive they have had to introduce a number of new product lines as well as improve their existing products. The Porsche 918 Spyder is one example of a new product by Porsche. The hybrid car is powered by an internal combustion engine and two electric motors. The car is a culmination derived from everything they have learned from the Carrera GT and their RS Spyder Le Mans racer. While Porsche touts the car as an technical showcase for what entry and mid-level Porsche models will
have in the near future, it is also Porsche trying to be competitive since both Ferrari
and McLaren have launched high performance hybrids as well.

Looking at the Product life cycle of the Porsche 911 and specifically the 991 model, Sales have been steadily increasing since its introduction in 2011. The car sold 19,377 in 2011, 25,457 in 2012 and 30,205 in 2013. Based on the 9 year life cycle of the Porsche 997 (previous model) and the increasing sales numbers, the Porsche 991 is still in its growth stages. We can expect to see the sales for this model peak in a few years, followed by some different iterations to extend the maturity and eventually Porsche will stop production of the 991 and introduce their new model. Because of the rate of technology and the fact that some things are obsolete by the time they launch, it is interesting to see how Porsche will handle the life cycle of the 991. They may offer a mid cycle refresh of the car the same way they did the 997, but that might not be enough. Add that to the fact that they will now be competing with Mercedes, Jaguar, McLaren and Tesla, Porsche will have to work harder than ever to develop better cars in order to remain on top.