Porsche’s E-mobility Transition: Balancing through Transformation

In 2022, Michael Steiner, Porsche's Executive Board Member for Research and Development, confronted a pivotal decision as the company aimed to shift over 80 per cent of new vehicle sales to full-electric models by 2030. In response to the global drive for sustainability, Porsche contemplated an innovative strategy: the eFuels concept, involving the production of synthetic fuels with near-carbon-neutral potential. This presented a solution to challenges such as market competition, technological changes, and varied global governmental impacts. However, Porsche grappled with the dilemma of embracing eFuels or focusing solely on electric vehicles, recognizing the decision's profound impact on its industry position. The company was faced with the choice of becoming a fuel provider, controlling the entire value chain, or collaborating with existing producers to leverage expertise and mitigate risks. The decision required careful consideration of long-term implications, with high stakes shaping Porsche's trajectory for years to come. Balancing electric engine development and the pursuit of eFuels, the company sought to strike a delicate equilibrium in navigating the complex landscape of sustainable mobility and emerging technologies.

<p align="justify">This case is designed for undergraduate, graduate, and executive education in business strategy and strategic management courses. It can be used to introduce and discuss the application of strategy analysis and business strategy development. The case outlines the initial situation of Porsche AG, the challenges and opportunities in the automotive industry, the heritage and history of the Porsche brand, as well as the “Double E” (electrification and eFuels) strategy of Porsche. After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li>Apply basic and key concepts of business strategy.</li><li>Perform a systematic evaluation of an industry and industry environment.</li><li>Apply fundamental frameworks to identify the competitive positioning and advantage systematics of a company.</li><li>Develop an understanding of different growth strategies.</li></ul>

• Porsche
• eFuels concept
• sustainability
• global automotive
• market competition
• technological changes
• governmental impacts
• industry position
• fuel provider
• value chain
• collaboration
• risk mitigation
• long-term implications
• sustainable mobility
• emerging technologies
• business strategy
• strategic management
• growth strategies
• strategy
• SWOT