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Skoda able to identify Brand Position was one of the weakness for Skoda in the highly competitive fragmented market by positioning the brand as low budget or low quality vehicles which caused Skoda to get 1.7% of the market share, because the company used to manufacture cars of poor image of quality, design, assembly, and materials, which leaded customers to perceive the brand image as poor image for majority consumers compare to other competitors like Ford, Peugeot, and Renault. By looking business model, example General Electric business model that say business organisation can determine its self by looking factors like Business Strengths (strong or average or weak) in the market and industry attractiveness (high or medium or low) at that market. According to that model that means the Skoda had probably weak business strength and its industry attractiveness was probably strong in the market.
The analysis gave clear direction to Skoda that there is need to Partnership with Volkswagen by raising strategic alliance between themselves which leaded the Skoda to change the negative image in the market. Also Skoda management did understood that they need to correct old perceptions by stop being defensive in promotional campaigns and change market message as Skoda owners need to be happy and contented with their cars, Also convincing users that Skoda cars were great to own and drive.
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