Case Analysis - Saturn

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(I) Situation Analysis. Present situation, strengths, weaknesses, opportunities, and threats (SWOT).

Present Situation:

Saturn is currently in a turnaround phase, trying to revive its old glory and sales with a completely new line of products. The company's sales has started to decline and thus, the current strategy is to revive the brand once again by infusing fresh line of products. The key challenge facing the company is not only to sustain its brand image and reputation, but also offer the new revamped line of products to capture market share.

Strengths:

Highly reputed brand image, especially among people who value safety, innovation and customer service as well as quality. Saturn has been known to produce quality cars that offers high value and customer satisaction to its owners.

Strong reputation in terms of customer service, which is the key to success in today's world.

Loyal customer base.

Strong dealership network.

Strong backing from GM.

Weaknesses:

Lack of new models in the earlier stages (though company is trying to overcome this weakness by introducing new models)

Confused between styling and customer service with newer models based on Opel Styling.

Sales dependent on its niche customer base.

Opportunities:

Opportunities to capitalize on its brand reputation, strong dealership network and brand image as a customer friendly car company.

Opportunities to tap the growing market for hybrid vehicles with value for money hybrid offerings.

Opportunities to tap newer segments of consumers with revamped offerings, especially those customers that did not consider saturn before.

Threats:

Competitive threats from other foreign players like Toyota and Honda.

Threat of losing brand image and reputation with newer models based on Opel Styling.

Threat of losing high quality standards and customer service quality due to influx of multiple models.

(2) Problem/Opportunity. Problems are ...