Ethics and Social Responsibility

Porsche code of conduct:
 we act responsibly, for the benefit of our customers, owners, and employees;
- we consider compliance with international conventions1), laws, and internal
rules2) to be the basis for sustainable and successful economic activities;
- we act in accordance with our declarations; and
- we accept responsibility for our actions.

Part of the experience in owning a sports car is the thrill of the danger, and Porsche has had to be careful how they market this experience. Porsche had cars like the Spyder that James Dean died in or more recently the Carrera GT, the V10 hyper car that Paul Walker died in, that became known for the accidents that they were associated with.
 The 911 however became known as a widow maker because of its radical design. By having the engine hanging over the rear axle the car acted like a pendulum in corners. Drivers had to be ready when turning the car, to counter the back end swinging out. Porsche was so adamant in those days about keeping the engine where it was that they tried everything to counter the effects the engine position had on the car. They even tried filling the front bumper with lead to counter act the weight bias. Porsche felt that the performance attributes gained with the rear engine positing was too great to lose so they stuck with it and over the years they developed the chassis to handle the car's weight bias. The danger associated with driving the car was one of the things that made it popular. Selling the car knowing that it had what some would call a design flaw could be seen as ethically incorrect.
Popular automotive journalist Jeremy Clarkson said that in the 80s and 90s the 911 had an added x factor that the current models are now missing. He went on to say that the new cars feel clinical in comparison, and the safety features take away from the car's character. This change started in the late 90s when Porsche switched to water cooled engines in order to lower maintenance costs. Porsche started showing concern for fuel efficiency and safety. They started looking into new energy sources like bio fuel, diesel and electric power. We can see this focus reflected in the cars they are now testing, like the hybrid 919 LMP1 Le Mans racer and the 918 hybrid production car.

This technology which is undoubtedly going to seep down into the lower range of cars is Porsche exhibiting Social Responsibility. Building cleaner cars that emit less CO2. And cars with more safety features to help protect the driver. One of the new technologies Porsche is using to make their cars safer is the rear wheel steer. This is where the rear tires are calibrated to move with the front wheels to, at low speeds, make the car more maneuverable and make the car more stable at higher speeds.
Porsche is working on keeping all of their stakeholders happy. They are trying to sell a safer product, that will make the brand look more responsible, and avoid legal battles. They are using technologies that will make the cars cleaner while keeping performance moving forward. They will also benefit from the green marketing in using these new clean technologies.

Chapter 2 Strategic Planning for Competitive Advantage

Porsche worked tirelessly on their new 991 designation 911 to fend off new attacks from Jaguar with the new F Type that offers a more visceral experience for a lower price than the 911. And the new SLS inspired Mercedes AMG GT that is built to compete directly with the Porsche. With the new 911 Porsche decided to change fundamental things about the car, like moving the engine so it now sits in front of the rear axle rather than behind it, and switching from the traditional hydraulic steering systems to a electromechanical unit. They also opted not to offer a manual transmission in their new GT3 which had long been heralded as the last super sports car that offers a manual box. These changes that Porsche has been making can be seen as part of their product development strategy. A strategy that they hope will keep the 911 the most desirable option not only for fans of the 911 but for any prospective customer in the sports car market.



In 2003 Porsche started an RS program for their 996 GT3 to meet the needs of a growing segment of the market that wanted a lighter, track ready version of their sports cars. The cars had to meet circuit regulations, so things like a roll cage, the five point harness and a fire extinguisher was included in the car when it shipped from the manufacturer. These cars had to be able to set fast lap times on Sunday, but still be usable enough to drive to work on Monday. When the 996 GT3 RS launched it was going up against Ferrari's answer to the track day market, the 360 Challenge Stradale. Porsche showed Core Innovation with their RS program and even though the 360 CS went on to become a legendary Ferrari, the GT3 RS was such a commercial success that it became the standard for all track day cars.

The sports car market is rapidly growing. In recent years we see china quickly becoming one of the largest consumer markets for luxury sports cars. In response to this we see manufactures building cars that satisfy the needs of this growing market. Lamborghini has tailored their new Huracan to be more appealing to the Asian market by giving it softer styling cues and making it easier and safer to drive quickly on the road. The Star sports car for Porsche in China is the 911 and they have gone a different route than Lamborghini. Instead of tailoring a car for the market Porsche offers the same package but invested more in distribution by opening more dealerships. As it stands Lamborghini is set to see a 5% increase sales for 2014 while Porsche is expected to see an increase somewhere in the low double digits.

Preforming a SWOT analysis on the Porsche 911 would show that its greatest strength is its heritage. The name 911 is one shrouded in tradition. It has a chassis that has been continuously develop for 50 years and one of the most iconic silhouettes in history. Its weakness would be the changes that they have been making to keep the car relevant and desirable. By making these changes like not offering the manual transmission Porsche is alienating a very core group of Porsche fans in order to be desirable to a wider audience. This results in Porsche building a car that might not enjoy the longevity and deity status among car enthusiasts as the older air cooled 911s do. It is also likely that these newer cars will never be considered classics. 
External Opportunities for Porsche is the emerging Asian market. They can use that 50 years of heritage to create the same following that it enjoys in the United States and Europe. These nations like Korea, Beijing, Singapore, India are changing socially and economically, and the nouveau riche wants something that represents their status without showing how recently it was acquired. Finally their threats, Porsche has long been at the top of the sports car range and after a decade or so of running unchallenged it is facing very strong competition from both Jaguar and Mercedes AMG. How Porsche will respond to their new challengers remains to be seen.

Even though Porsche does not enjoy the competitive cost advantage it does have the Product service advantage over its competitors. One of the ways Porsche continues to maintain a good relationships with its customers is by building parts for their cars long after they are legally obligated too. Porsche is also a well known brand name usually looked upon with respect even by people who are not car enthusiasts.

The product itself is a performance orientated car sports car that has 50 years of history, race wins and engineering advances under its belt. Alot of people grew up with Porsche and Lamborghini on their bedroom walls and when they became adults the Porsche still resembles what they day dreamed about as children. Porsche understands distribution and they spend alot of money on making sure that they can get their cars where people want them. They are currently investing in doubling the number of dealers in China by 2015. And they recently opened the Porsche Centre Chengdu Airport in China which serves as a dealership, showroom, customer service desk and a place for enthusiasts and customers to see a full line up of all the Porsche models. Porsche does not price competitively, the new 991 911 is the most expensive Porsche 911 ever made. In the face of new competition we may see a change in the pricing strategy from Porsche.

Chapter 1 History and Mission Statement

The Porsche 911 is the flagship of the current line up of Porsche. It is a two-door, high performance sports car made by Porsche AG of Stuttgart, Germany. It has a distinctive design, rear-engined and with independent rear suspension, an evolution of the swing axle on the Porsche 356. Since its introduction in 1963,^[1] it has undergone continuous development, though the basic concept has remained little changed.^[2] The engine was air-cooled until the introduction of the Type 996 in 1998.
Throughout its lifetime, the 911 has been modified by private teams and by the factory itself for racing, rallying and other forms of automotive competition. It is among the most successful competition cars ever. In the mid-1970s, naturally aspirated 911 Carrera RSRs won major world championship sports car races such as Targa Florio, Daytona, Sebring and Nürburgring, even against prototypes. The 911-derived 935 turbo also won the coveted 24 Hours of Le Mans in 1979.

 Mission Statement: Tradition Future

911. Three digits. Nothing more than a logo. And yet it represents a legendary Sports Car concept.Today's 911 still has many stories to tell. Of heroic race victories. Of a design that has become iconic. Of countless childhood dreams. And of a timeless idea.
The 911. Tradition Future. Since 1963