The impact of globalization and contemporary technological paradigms on the image dilution related to nichemanship: an example of Porsche in Bulgaria

Abstract

The purpose of this report is to assess the relationship between globalization and brand extension factors, and their influence over the image evolution of the sports car manufacturer Porsche with a practical example of the company business in Bulgaria. The study also intends to provide managerial implications that Porsche can utilize on the Bulgarian sports car segment. In an actual fact, Porsche has witnessed profound transformation since its establishment. Although the company is traditionally associated with the production of sports cars, throughout the last two decades it has evolved from single-product company to a very broad, market oriented sports car manufacturer which targets more and more enlarged audience. This image evolution of Porsche is an attention-grabbing business transition as the company is undergoing many changes on the core company values (a strong focus on performance sports cars and sole control over its operations) that made it successful in the past.

By putting the operations of Orchid sports cars* into the framework of contemporary globalization circumstances this report intends to elucidate the latter’s chief impacts on the altering image of Porsche in Bulgaria. A predominant focus is being put on the image evolution perception of Porsche on the Bulgarian sports car segment. The study begins with general introduction and background to the problem; subsequently it puts relevant literature into critical discussion; at the next stage the research explicates the methodology employed and provides the results of it; finally the study takes a closer look at the findings and elucidates recommendations for future research and most importantly – recommendations to Orchid Sports Cars. Overall, global market scope and intensifying competition factors force Porsche AG in general to exploit market advantages by enlarging its portfolio. However, these new additions in the face of Porsche Cayenne and Porsche Panamera exert pressure on the core values and the image of the company. From a managerial perspective, this paper supports the concept that traditional niche marketers such as Porsche should capitalize on consolidating their competencies and enhance their sales proposition compared to seeking for a broader market outreach.