The Reason Why Skoda Is Not Essay

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The reason why Skoda is not popular in Chinese market.

Skoda has good sales in Europe, Asia, the Middle East, South America and Africa and so on. Skoda is very popular in these area because it is high cost performance, the vehicle is durable(耐用), safety, good controllability(操控性) and comfort(舒适性).

On 8 December, 2005, with the witness of WENG JIABAO, who was ex-premier of the People’s Republic of China, SAIC, SHANGHAI Volkswagen and Skoda signed a contract about cooperation between SHANGHAI Volkswagen and Skoda. It means that Skoda which is a famous brand was located in SHANGHAI. So far, however, Skoda is not popular in Chinese market.

There are three reason:
1. The personnel adjustment;
2. Containment relationship between the department of SHANGHAI Volkswagen-Skoda and Skoda-China;
3. Indetermination of brand image;

The personnel adjustment

It is very amazed that Alfred Rieck, who was the first president in Skoda-China, was dimission(离职) after 22 months since he assumed office in August 2009. Besides, the second president, who is Marx, put in notice(请辞) initiative(主动) after 15 months. The reason why Skoda-China has personnel adjustment frequently is that the framework is not reasonable.

Containment relationship between the department of SHANGHAI Volkswagen-Skoda and Skoda-China
Because restricting by business division of SHANGHAI Volkswagen-Skoda, the Skoda-China’s function and power is limited. SHANGHAI Volkswagen-Skoda always master the control power of Skoda in China. No matter production, selling, brand development and product planning, Skoda is in charge of SHANGHAI Volkswagen-Skoda. Hence, Skoda can not master its fate by itself in China. The evidence is that the B-class vehicle, which can be showed…