Rolls Royce Case Study

Rolls Royce Introduction

Rolls Royce is a British premium automotive maker with its headquarters at Greenwood, United Kingdom. The company is a wholly owned subsidiary of BMW, a German group which licensed its rights to a brand name, Rolls Royce. Its logo was acquired from Rolls Royce Plc and its grill shaped trademarks was obtained from Volkswagen AG. The company has been operating from production and purpose based administrative facilities which was established in the year 2003 in Greenwood, West Sussex and has been manufacturing branded premium motor cars. The Rolls-Royce Phantom was one of its first cars which were put on sale in 2003 and since then they have extended their line of products to convertible versions and two-door coupe versions of the car.

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Rolls Royce Swot Analysis

Table 1: Swot Analysis of Rolls Royce

(Source: Influenced form Xu et al. 2015)

Rolls Royce Analysis

Strengths

Rolls Royce has always been consistent with its performance, quality and has been manufacturing luxury cars. This has enabled them in premium charging of their products. As per the case study of Rolls Royce, they have obtained support from parent company that has been successful in integrating advanced technologies within their operations. This association has been their biggest strength. The company has been manufacturing luxury cars with top class design and expertise in interiors. The engines and chassis of their cars possess superior build quality. The product line of Rolls Royce has been extended since 2003 and has been offering premium brands such as Phantom Coupe, Phantom Drophead Coupe and Ghost (press.rolls-roycemotorcars.com, 2019). As per the case study of Rolls Royce, their employees are recruited with a lot of attention who are highly qualified and skilled in their respective fields. Moreover, the company has their presence in more than 50 countries worldwide and has its customers from more than 180 countries.

Weaknesses

Rolls Royce has been offering luxury cars and its target customers belong to high class. Hence, its products are perceived as a vehicle for a rich man which is not affordable to people belonging to lower income groups. The pricing strategy of the company has always been at the highest spectrum which might be unaffordable for the majority of customers. As a result, the company will be able to cater a small group of customers (Sadgrove, 2016). As per the case study of Rolls Royce, the company has evolved design of their cars over the time and as a result, most of their cars seem to be a clone of other models. Hence, their customers prefer the brand for its innovative design and styling standards.

Opportunities

With the integration of advanced technologies in the automotive sector, the company will be provided with an opportunity to incorporate these technologies for establishing a seamless manufacturing process. There have been a huge number of ongoing researches in manufacturing self driven cars within the automotive sector (Xu et al. 2015). This will in turn enable luxury car companies like Rolls Royce in automation of their cars more easily as compared to regular car companies.

Threats

Increasing demands of customers for sustainable transportation has led to an increasing concern within the company as the current manufacturing process is not environmentally friendly. As per the case study of Rolls Royce, it can be stated that the company has been facing a greater amount of competition from brands like Audi, Mercedes Benz, BMW and Lamborghini.

Rolls Royce Pestel Analysis

Table 2: Pestel Analysis

(Source: Influenced from Sadgrove, 2016)

Political

Rolls Royce has a diverse portfolio of products which extends for high end customers globally. The decision of the United Kingdom to leave out of the European Union (BREXIT) has been a major concern for the company as it might introduce an element of pricing uncertainty and future supply which might be exploited by their competitors.