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Jaguar a UK-based automotive company was a pioneer in furnishing the roads with sleek sport sedans. The firm dates back to 1922 and was then known as the Swallow sidecar company. However, Jaguar as a brand had quite the journey before merging with Land Rover in 2008. Then, it was named Jaguar Land Rover. The brand’s vehicles are designed predominantly in the UK. The brand boasts of a global reach and has over 40,000 employees with markets in the US, the UK, Brazil, India, and Europe. Jaguar has marked its place in the market today. However, the SWOT and PESTLE analysis provided below clears the brand’s performance and prospects.
Jaguar is a popular brand associated with luxury cars and has built up quite the image in the minds of its worldwide consumers. This is also because of their highly talented and skilled workforce, as they insist on providing the best quality. Furthermore, the acquisition by Tata has added more towards its brand value and the sales have significantly been progressing post-2000. Lastly, Jaguar understands the value of research and tries its best to come up with innovative solutions, therefore, heavy investment in R&D has reflected fairly well for the company.
In terms of weaknesses, they have a limited array of products to choose from. This attribute of theirs has resulted in limited popularity in the German and Japanese markets. They have been expanding their market with the same limited models and have been stagnated in that aspect. Additionally, some quality issues were found in the past concerning faulty seatbelts and rear seats which have been impacting their name to date.
As a popular brand, there are several opportunities for the brand to explore newer markets such as China and India and carve their customer base. Further opportunity can be explored concerning the production of hybrid cars that take on a more sustainable approach. A greater number of individuals has emerged with disposable income and this can be a great opportunity for the firm to increase its sales.
The company faces intense competition from other luxury automobile brands such as Bentley, Audi, Mercedes, and Porsche. In terms of the economy, the rising cost of raw materials has risen and can put a financial dent on the company. Moreover, numerous nations are drafting environmental policies and the firm may be forced to withdraw their market if they do not align with the national policies concerning the same.
Strong brand name and image
Acquisition by Tata
Diversified product range
Well invested R&D
Weak market position in German and Japanese markets
Quality issues in the past
Less product variation in terms of image
Opportunity to explore emerging markets such as India and China
Individuals with disposable income driving sales
Production of hybrid cars
Intense competition from Bentley, Audi, Mercedes, and Porsche
The rising cost of raw materials
New environmental policies in various nations
This PESTLE analysis is aimed towards determining how external factors such as political, economical, social, technological, and ecological determinants affect Jaguar’s business and image.
Political environment of any nation is essential for any business to run smoothly. Government decisions such as taxes and policies impact Jaguar greatly. Its operations in the communist nation of China are susceptible to the whimsical nature of the government and management is tricky due to minimal freedom of speech. Similarly, the volatile nature of the nations of Afghanistan and Pakistan can also interrupt the operations of the company. Terrorism is at an all-time high in these nations and has greatly impacted the growth of the company.
The economical factors of the nations also have an impact on automobile companies and therefore, a credible economic development that has created a demand for luxury vehicles has been a boon for Jaguar. Similarly, it is to be noted that vehicle sales are higher in those nations with comparatively lesser fuel prices. Furthermore, Jaguar is extremely affected by the fluctuations in currency rate as it runs its operations in various nations. However, emerging economies like China have been a healthy market for the brand due to the increase in buying capacity of the citizens.
The masses identify Jaguar automobiles to be a symbol of class, luxury, and safety. Such ideals have carved a premium image of the brand and have further been able to grasp wealthy consumers. The notion has aided with brand pricing as well. The firm has further furnished its image by ensuring that they follow sustainable and ethical practices to create customer value.
Technology has been the backbone of automobile companies and Jaguar has ensured that they grow with the advancement in technology. They are committed to providing the best for their consumers and have the vision to introduce electric cars on roads by 2025. More than 3 billion are invested in their Research and Development and the result of that is reflected in the vehicles being furnished with lightweight aluminum technology. Jaguar has also accredited itself with numerous intelligent patents to create technologically advanced vehicles.
Jaguar has ensured that its trademarks and patents are protected at all costs and successfully defended a Canada-based company into giving up the term “Defender” as it was originally their trademark. But legal aspects have proved to be a problem in the Chinese market due to its communist nature of governance. Therefore, the firm has been engaged in a patent dispute with Jiangling Motor Holding in the context of similarities in design. You should check plagiarism of your case study assignment.
In terms of sustainability, a lifecycle approach has been taken up by the firm that aspires to understand how the product manufacturing process and operations impact the environment. Accordingly, suitable changes are made to sync with environmental protection. Jaguar is aiming to significantly reduce its carbon footprint by incorporating better production processes and offset programs. Concerning innovation, vehicles from Jaguar are designed to reduce harmful emissions to conserve the environment. If you are looking for such relevant case study factor. then take help from Allessaywriter.com's expert.
In conclusion, Jaguar has carved quite the customer base for itself and has several strengths in its basked. However, it is not without weaknesses and threats. Therefore, special attention is to be provided to the two so that they do not pose a problem in the future. The paper also evaluates the external factors that have had an impact on the brand.
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