What Was the Key Weakness That Skoda Was Able to Identify?

One of the successful global brand is Skoda, which producesses their products in today's strong competitive market. In order to get more competitive edges and more shares in market, Skoda identify their internal weaknesses and try to reduce them. Internal weaknesses are the things that business not good at, that it is ineffective at or that it has a poor reputation for. It also includes the factors that cause losses, hardships, disputes, grievances and complaints for a business.

There are some key weaknesses that Skoda needs to improve such as their market share which is only 1,7%, with this small market share they can not compete with their competitors who has more market shares than Skoda. This is because Skoda is mostly known as very poor vehicle quality, design, assembly, and materials in Eastern European. That is why customers already have negative ideas about Skoda's products. Skoda try to change their negative image from 1999 onwards, under Volksagon AG ownership. They changed their image and try to prove that Skoda's cars are not low budget or low quality anymore. They want to show others that they are strong competitors as well. However, a brand 'health check' in 2006 showed the result which Skoda does not want. The result was Skoda still had a low image in their market comparing with other brands such as Ford, Peugeot who already known as high quality products. All in all Skoda is no longer poor quality brand, it did not have a high image either.