In: Business and Management

Submitted By Treble
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Porsche has perfectly positioned itself in a niche market. The brand—for which, as it was famously phrased in the movie Risky Business, "there is no substitute"—has just about everything going for it, even as the wider world of personal mobility crumbles. Its owner base is passionate as well as devoted and the automotive press routinely adores the brand. Due to its compact portfolio of four vehicles, all engineered according to the unimpeachable values of high performance, Porsche would seemingly be impervious to downturns. Yet, the company has seen time periods with drastic decrease in sales.
To rebuild its momentum, Porsche has followed other luxury car companies, including Mercedes and Audi, and explored ways to expand its market by introducing different lines and less expensive models. With its impeccable reputation as the quintessential luxury sports car, this can be hazardous territory for the company, as some fans believe it will lead to the cheapening of the brand and ultimately force loyal patrons to find a substitute.

Track Work The Porsche legacy was founded well before the company was created in 1931 by Austrian engineer Ferdinand Porsche. Ferdinand Porsche received international fame when he introduced his Lohner-Porsche electric car at the 1900 World Exhibition in Paris. The Lohner-Porsche was highly efficient and more expensive than similar cars with combustible engines, starting Porsche’s brand of luxury vehicles. Additionally, in 1910 Ferdinand Porsche won the Prince Henry Trials with his Austro-Daimler race-car, which he personally drove at the race. This was the beginning of a long line of races the founder and his company would win. After founding the Porsche company headquarters in Zuffenhausen, Germany, the German government hired Porsche in 1934 to design a car for the people, a Volkswagen. The rear-engine Beetle…...

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