SWOT Analysis of Penske Automotive Group

adam May 26, 2012 Automobile No Comments

In 1990, the company Penske Automotive Group was founded which is based on the industry of automotive, auto dealership and vehicle parts. The company was headquartered in Bloomfield Hill, MI, USA. The company is considered to be the world’s second largest auto dealership company. The company is producing its services in the countries of Germany, Mexico, United Kingdom, Puerto and USA. The products manufactured by the company are automobiles and is engaged in performing the services of repairs and financial services.

Penske Automotive Group SWOT Analysis

Penske Automotive Group Strengths

• The company has strong capabilities and the abilities of the engineering in the creation of such automobiles.

• The company has a well built brand portfolio that attains the attention of the customers.

• The Penske Automotive Group is experiencing strong distribution of its products and services to its dealers.

• The large number of goods and commodities are produced by the company because of the high level of employee productivity.

• The company maintains its strong financial position in the market with the appropriate stability.

Penske Automotive Group Weaknesses

• The decline or somehow the stagnant growth is the weakness for the company as it affects the brand name.

• The declining issue is faced by the company as in the efficiency of operating or performing and the returns received by the company are also weak.

• The main shareholders of the company have the greater influence in order to take decisions in the company perspectives.

• An Environmental and government regulation effects the growth of the company and the import duties implied by the government.

• The various restrictions imposed on the manufacturing limits the growth of the products.

Penske Automotive Group Opportunities

• The company should try to improve the revenues in the areas where the company is already developed.

• The growth can be increased and enhanced as by focusing on the acquisitions of the targeted assets that increase the factors of production.

• Best sort of practices should be implemented by the company and the scale of the work should also be increased.

• The loyalty regarding the customers should be more focused by the company and implement such strategies to increase that.

• The demand should be increased for the various sort of vehicles that are run with the dual fuels.

Penske Automotive Group Threats

• The intense competition in the field of automobile decreases the ratio of profitability for the company.

• The sales that are made for the market share decreases the market price gradually.

• The actions of the subleases that are developed by the company are most probably unfavorably affecting the performance.

• The loss occurred due to the property, the interruption of the other businesses and the company liabilities because of the leadership.

• The factor of the price wars is also the threat for the company because of the development of the cartels.

• The economical crisis also has an effect on the company as like of having wars in the world decreases the production which results in the decline of the growth.

References

• Spriggs, D., Hettie, K., DuBois,C., Kisseberth, E., Lockwood, T., Penske: Industry and Competitive Analysis

• www. PenskeAutomotive.com, Accessed on 21 May 2012.

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