Strategy Analysis on Aston Martin

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PRESENTED BY GROUP 6 ASTON MARTIN GROUP 1

Transcript of Strategy Analysis on Aston Martin

PRESENTED BY

GROUP 6

ASTON MARTIN

GROUP 1

Aston Martin: A Brief History

• The first Aston Martin was a tunedversion of a Singer sports car, builtby Robert Bamford and LionelMartin, who lent his surname to halfof the car’s marquee.

• The “Aston” part came from the factthat the cars did rather well in theAston Clinton hill climb event, hencethe company became known as the“Aston Martin.”

• Aston Martin was bought by a David Brown, a tractor and gear manufacturer in 1948.

• David Brown was a racing car enthusiast who built his fortune from his other businesses which allowed him to indulge his passion for sports cars.

• The Two Liter Sports was David Brown’s first Aston Martin. It was extremely expensive at £1498 and by May 1950 only 15 vehicle were sold.

• A stripped out version of the car won the 1948 Spa 24 Hour Race. It also wore what was to become the famous Aston Martin grille.

• Notice the similarity with David Brown’s initials on this and following models to date.

• The DB2, launched in 1950, was designed by W.O. Bentley, founder of another British car company bearing his name.

• David Brown brought Bentley's engineering expertise to Aston Martin and put W.O.’s 2.6 L straight-6 engine in his DB2. A super leggeraframe gave the car phenomenal torsional rigidity.

• In all 411 DB2’s were made by 1953, which gave the company a secure footing.

Aston Martin’s strategy for growth and

profitability

• While the headline investment figure will help refuel Aston Martin’s

technology assets and the development of new models, the most immediate

opportunities lie in tackling the booming luxury markets in China, India and

the Middle-East.

• Of four rivals, Bentley, Porsche, and Ferrari have been most successful in

cracking the world’s fastest growing market, with Lamborghini and Aston

Martin faring less well – although the United States and China are now

Lamborghini’s largest markets.

• Aston Martin’s financial limitations during the past three years (during which

time it reduced its workforce by 30 percent), the company has not been idle

• Developing some of the industry’s most sophisticated customer

management processes and an engagement experience that they believe is

second to none

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