Rolls Royce Case Study
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75000+ Completed Assignments 1500+ PhD Experts 100+ Subjects we cater 100% Secure PaymentRolls Royce is an important and renowned name in the field of automobile industry. The company was developed by Henry Royce during the year of 1884. The company introduced their first product during the year of 1904. They turned their fortune by meeting Charles Rolls who had sold his number one cars in the famous place of London.
The company established an agreement that the Royce Limited will produce a wide variety of cars for the exclusively sold quality vehicles by the Rolls and Company. Hence, the name of the company appeared as Rolls-Royce. From then, the company has appeared as a British luxury car company who have established the tagline of ‘best car in the world’ within a very short span of time.
Also, the company started their journey with the aero-engine manufacturing procedure during the year of 1914. The first model was named the Rolls-Royce Eagle that was entered into the marketplace during the year of 1915. The company introduced a new branch in Massachusetts, Springfield in the United States.
In this place the popular model of Phantoms was developed. This particular branch was known as the American Rolls-Royce and appeared as Silver Ghost with the extraordinary price almost US$11,750. This study will introduce a case study containing the analysis of internal and external strengths and weaknesses of the organisation.
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| Strengths | Weaknesses |
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| Opportunities | Strengths |
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As shown in the matrix, the company contains huge features that situate it as the leading brand of the entire world. Firstly, the company is associated with a positive brand image with their outstanding designs of the cars and excellent performance throughout the year. The company contains a rich heritage of the parenting company.
The company is also providing the best designed cars for their potential consumers. The company also contains a skilled labour force that is strengthening the performance of the organisation. Finally, the company has developed the notion of pan-global presence. The company has developed its excellent branches in more than 50 countries covering the entire world.
Despite the strongest features, the company is also associated with different weaknesses which are mentioned in the following section. Firstly, the company is dwelling as the status symbol of the higher-class society. The company represents the aspects of dignity and higher status and is often termed as the vehicle of richer or elite class people and not everyone can afford to have these vehicles.
Secondly, the company contains an evolutionary design that belongs to the older generation. People are considering that the company is cloning their older models of cars with adding new technologies. The company also included an exorbitant pricing that excluded one set of consumers out of its reach.
Along with this, the company is becoming over reliant on the repeated purchase decision of one particular group of consumers. They fail to grab the attention of consumers covering all the demographic features.
There are different opportunities for the organisation that can reduce the challenges observed for the company. For example, consumers are becoming more demanding related to technology. The company also needs to depend on the notion of automation. The entire automobile industry is focusing on the procedure of automation including self-driven cars and facilities related to sharing cars and budget friendly cars.
Along with this, the consumers are much concerned about the increasing nature of spending. The rival organisations are investing more on the notion of hybrid vehicles which can also be an opportunity for the organisation to maintain their market position. Additionally, the company can also invest in the procedure of green technology or sustainability to enhance their competitive advantage.
Final component of the SWOT analysis is the threats. The company contains multiple weaknesses that can create important threats for the organisation. Firstly, the company is facing much more issues related to environmental sustainability. The company is also facing much difficulty in coping up with new models launched by existing rivals.
Finally, the increasing costs of raw materials and fuels. These are the potential threats for the company to maintain their market position within the entire industry. Their rivals target both the developing and developed countries covering the entire world. However, the company is only focused on its existing consumers and providing them better services. The existing competitors of the organisation are Mercedes Benz, Lamborghini, Audi and BMW.
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| Factors | Analysis |
| Political | As mentioned in the initial section of the study, the company is a British company and currently operating in different countries covering the entire world. Considering the European market, the company is operating in a good condition due to its political stability. On the other hand, within the Asian countries, the company and its functionality get affected due to its political instability. However, researchers have mentioned that in the European countries, the impact of Brexit is affecting the performance of the business to a greater extent. |
| Economic | The company operates in more than 50 countries and contains the experience of different financial conditions. The consumers with higher income rate is the best marketplace for Rolls Royce as it is a car of the richer class. Apart from this, the exchange rate also affects the organisation as the consumers of this organisation are already premium. For example, researchers have mentioned that during the year of 2008 -2009, the company was observed with huge losses as their sales rate was remarkably down. |
| Social | Generally, the social factor includes the direct connection of the consumers with the company. It is mentioned from the initial section, that the company is remaining a brand for the richer people. People consider the vehicles as the symbol of luxury status. Hence, the company is not operating as a brand for all the consumers. It is less appreciated within the standalone market. The company also deals with the manufacturing of engines of civil aircraft that is of no use to the common people. Along with this, the company is also associated with lesser concerns about their corporate sustainable responsibility. |
| Technological | The company is operating in the aerospace segment hence, the segment includes the adoption of the latest technology. The company invests more on technology to enhance the procedure of research and development to upgrade their existing models. Researchers have mentioned that, during the year of 2016, the company introduced almost 700 patents to safeguard their intellectual property. As the company provides classic cars, the company does not invest more on changing the trends of their model. The company considers this step as a step towards reducing the rate of emission. However, researchers have opposed their perception and consider Rolls Royce is remaining very rigid at their offering towards the entire consumer world. |
| Legal | As the company operates in more than 50 countries, the company needs to abide by all the legalities of the countries. Different laws regarding automobile production, environmental law and taxation impacts on the performance of the organisation. The company was once accused of bribery and it reached the CBI also. Along with this, one agent was also associated directly with the bribery case. Beyond this, the company also alleged it was not maintaining the sustainability development program developed by the member states of the United Nations. |
| Environmental | The automobile industry is alleged to be increasing the rate of pollution within the entire globe. Rolls Royce is not an exception in this regard. Researchers have mentioned, as the company does not invest on upgrading their models and it is still providing the clones of their classic models, the company is increasing the rate of emission within the environment. The company needs to upgrade their constructions of the engines to reduce the rate of emission. All their rivals are investing in the procedure of green technology to support environmental sustainability. The governments are also implementing strict rules for the organisations to support environmental sustainability. |
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