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Skoda Auto or Skoda is a Czech automobile manufacturer founded in 1895 as Laurin and Klement. The two cyclists who were known as Vaclav Laurin and Vaclav Klement are the founders of the company. At first, the two founders used to design and manufacture their own cycles, but they later established Skoda. In 1925, Laurin and Klement was acquired by Skoda works and hence the company was renamed.
The headquarters of the company is in Mlada Boleslav, Czech Republic. In 1925, Skoda was established in Czechoslovakia and later expanded itself towards Eastern Europe by producing cars, bicycles, farm ploughs and aeroplanes. The company faced economic crisis at the time of war but was able to cope up. Steady progress is associated with the company.
Today, Skoda cars are sold in more than hundred countries and in 2017, the total global sales of the company reached 1.21 million units. Skoda developed with time and joined hands with Volkswagen group to become its wholly owned subsidiary. Skoda is gradually catching up with big car brands and its progress has been commendable. The merger with the Volkswagen group which is known for its superiority and power was fundamental and is a major reason for the position of Skoda in today’s car market.
The first car of the company ‘Voiturette A’ was made in 1905 and thus began Skoda’s rapid rise in the Czech and European market. The design and quality of the car made it highly popular in the market. It was like an old-fashioned luxury car, small and attractive to the eyes. After World War 1, the founders of the company started manufacturing trucks but due to certain accidents at the premises, the company was desperately in a need of a new partner. Skoda Wars, which was back then and Arms Company wanted to revitalize their non-arms production. They acquired Laurin and Klement and hence Skoda was born. An assembly line was used for production from 1930 onwards. Before that, Skoda was highly effected by the atrocities of the economic depression.
When the company started to get back on track after the depression, the Second World War damaged a majority of economic and market resources of the company. Czechoslovakia was captured by the Nazi’s and Skoda had to serve in manufacturing of military vehicles for the German Army. Constant focus on manufacturing military planes, other weapon components and cartridges gave a huge blow to the automobile production of the company. The vehicle output decreased from 7000 in 1939 to a minor 683 in 1944, of which only 35 were passenger cars.
After the war, Skoda developed the 1101 series. The company was separated from the parent company after becoming a part of a communist party. It maintained its reputation in the market and continued with steady development. The development and growth of Skoda was sustainable till the 1960’s. In this time, the company produced models such as 440 Spartak, 445 Octavia and 1000MB. The Octavia became very popular among the customers.
The luxurious stature, affordable price and comfortable seats made it a favorite at that time. In 1980, a major update was made in the engine of Skoda cars. They started using 130 brake horsepower, 1289 cubic centimeters engine. It made the cars powerful and fuel efficient. This was not a very successful time for the company but it still maintained its prospective sales in the market.
The year 1991 marked the fall of communism and a joint venture with the Volkswagen group. 30% of the company’s shares were transferred to the new partner. After the merger, Skoda reduced the production of outdated family cars and started producing front wheel drive hatchback cars. The battle in the market was very close between the major companies. Skoda outpaced Renault and other competitors. The main reason was the good strategy and good implementation of the plans.
Skoda has been through a lot of ups and downs. The flexible history shows many mistakes and lethargic attitude that the company adopted. It also shows the ability of the company to bounce back into major competition. It can be observed that in the later period, Skoda generated good sales which resulted in generation of huge revenues for the company.
In 2015, the officials of the company realized that there is need of inevitable future technology. There is no alternative to electrification. Keeping this in mind, Skoda has started its bid to manufacture electric vehicles. The newest project of the company includes plug in vehicles. The company has developed ‘Strategy 2025’, which aims at developing and manufacturing full electric cars. The company also aims to start production for these vehicles in 2020. The latest model of Skoda, ‘Vision E’ is planned to be launched in 2020. The fully electrified car has some amazing features. Skoda definitely has a futuristic vision and the ability to make future cars for the customers.
A plug in hybrid version of Skoda Superb and a small SUV model of Vision X with natural gas electric hybrid power train will be available in 2019. This shows the dramatic growth and urge of the company to produce electric vehicles. This will not only give the company a new and superior dimension, but it will also prevent our atmosphere from the damage of different petro chemicals and emissions of harmful gases. Just like other companies, Skoda has invested a huge sum to accelerate the manufacturing of its electric vehicles.
Today, Skoda has also produced a number of cars where it uses impressive technology and innovation. Many technologies are new and have never been introduced before in the market. These technologies assist the driver for a better ride. The company also maintains the overall safety of the passengers. The Driver Alert System does a variety of functions. It works at the time of parking. The system activates when a car is too close or when a movable object is too close to the vehicle. The automatic parking system is a casual addition to the newer models.
High quality LED and taillights give a sleek and stylish display to the car. The new interiors developed by the company are highly efficient and innovative. There is a LCD screen which displays all the functions. Voice Activation can be used by the driver to maintain his/her concentration on the road. The Rearview Mirrors have been developed further to provide clear vision to the driver. The backseats are comfortable and adjustments of the seats can be done easily by the passengers. Skoda has clearly adapted the ideology of futuristic production and innovation. The company should definitely increase its pace to produce electric vehicles if it has to compete in the market.
Skoda is slowly progressing in the market. There have been some bad phases in the company’s history. It is inevitable from the current car market is very intense and filled with many good companies. To establish a place and to improve its possession, Skoda needs to improve its pace of development.
No doubt, the plans and investment for future are planned beautifully for the company’s benefit but there should be efficient and fast implementation. Skoda has given some beautiful automobiles to the car industry. Following are the top selling models of the company:
The build quality of new models of Skoda is superb. It has added a variety of new functions, details and materials to improve the quality of the exterior and interior. The exterior of the cars have been gradually improved by good paint and strong material that prevents the car from rusting. The paints of different colours especially black and blue gives a very stylish outlook to the car. The White light headlamps along with LED’s is another new addition to the car.
The lights glow the area in darkness and have a great reach on road. The Gloss black ORVM on the side mirrors gives an explicit look to the car. The supreme exteriors are thus made stylish and strong. This results in a better all-round performance of the car on road.
Inside, the cars come with comfortable and adjustable seats. The Perforated seats with wood design are jaw dropping. They look and feel amazing and gives the passengers an overall enjoyable ride. Many newer models have been given a sporty look. The sporty steering wheel along with highly innovative and technology filled interiors completes the car.
Skoda is an international brand distributing automobiles in highly competitive market. Skoda, recently won a lot of awards for producing quality automobiles. They have also increased their assets by focusing on customer satisfaction. The strategy adopted by the company makes its brand more powerful. It needs to focus on the proper implementation of plans. Skoda needs to learn from the previous mistakes. It has platform to develop and produce cars for customer satisfaction.
It should focus on creating brand image and brand loyalty. Skoda’s recent researches have shown that in order to grow in business, the company is required to address many issues. The company has realized that its rivals marketing approaches are mainly focused on the product itself. Skoda puts emphasis in customer satisfaction and giving the driving comfort to its passengers.
The period after the Second World War was dramatic for the company. Skoda was able to survive somehow even after economic crisis in the company. Today, it has started the scheme of electrified vehicles. The challenges of the future are tough.
Skoda needs to raise its game if it has to compete in a market filled with highly trained and well managed competitors. Keeping these things in mind, it should be known that Skoda truly has the potential to become a giant in the market if it continues to strategise and implement all its plans in order.
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