Porsche Drive (A): Vehicle Subscription Strategy

Car manufacturers offered car subscription programs, allowing customers to access cars for a flat monthly fee that covered the vehicles’ cost, maintenance, and insurance. Unlike traditional leasing or financing options, these subscription programs provided an appealing alternative for customers who wanted to avoid long-term ownership commitments and appreciated the all-inclusive convenience. Since 2017, several car manufacturers had launched subscription programs with both successes and failures. As of the summer of 2023, only Porsche and Volvo continued to offer subscription programs in the United States. The case examines the continuously evolving Porsche Drive subscription program and explores its development, supply chain and pricing strategies, and future challenges.

This case can be used in management, marketing, and operations strategy courses for students in the third or fourth year of an undergraduate business degree. It can also introduce pricing as a business strategy tool for graduate-level marketing and revenue management students.<br><br>This case can be used to achieve the following learning objectives:<ul><li>Analyze the strategic rationale for launching a subscription service within a traditional product-based industry.</li><li>Evaluate the key factors influencing the success or failure of subscription programs, particularly in the context of luxury vehicles.</li><li>Compare different subscription models, identifying the core elements of a successful value proposition in the automotive industry.</li><li>Apply frameworks and analytical tools (e.g., Porter’s Five Forces and a strengths, weaknesses, opportunities, and threats [SWOT] analysis) to assess a subscription service’s competitive landscape and strategic positioning.</li><li>Develop a comprehensive understanding of the pricing and customer acquisition tactics of companies launching subscription services.</li></ul>

• Porsche Drive, Vehicle Subscription