Analysis of Saab

Topics: Saab Automobile, Automobile, General Motors Pages: 3 (1046 words) Published: May 22, 2011
Saab is an acronym for Svenska Aeroplan Aktiebolaget. The company was founded in Sweden in 1937 for the purpose of building aircrafts for the Swedish Air Force during World War II. After the war ended, Saab entered the automobile industry and relocated to Trollhattan where they are still located today. Saab is well diversified producing products in five different business units: Aeronautics, Dynamics, Electronic Defense Systems, Security and Defense Solutions, and Support and Services. Saab was acquired by General Motors in 1990 who then sold the rights to Spyker Cars in 2010. Target Consumer:

Saabs’ target market is labeled as “postmodern individualists” who create their own style rather than following others. These individuals are considered well-educated and usually live in urban areas. They seek a car that is simple, delivers quality performance, and provides outstanding safety. The car driving experience is built around the idea of providing pleasure for the driver. Saab’s main markets include Sweden, United States, and the United Kingdom. Competitors:

Saab competes with many well established brands and companies in each of its main markets. The Volkswagen Group which owns; Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda, and of course Volkswagen is one of Saabs’ numerous competitors. They also compete with BMW, Volvo and Daimler AG who makes Mercedes. Saab has been struggling to revive slumping sales in the US market for some time. Their lack of ability to create a distinctive design and finding the right price tags are some of the reasons they have found it difficult to compete as a luxury brand. Industry Analysis:

The automobile industry as a whole has taken a hit since the global economic downturn and has created an uphill battle for Saab ever since. In 2008 the Swedish government had to provide financial assistance to both Volvo and Saab due to the automotive industry crisis. These events have taken a toll on Saabs output and...
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