Continental

Premium members report, featuring a concise PESTLE, Porters Five Forces, 5C, MOST, 7Ps, CATWOE and SWOT

This analysis of Continental is part of our coverage of the world’s 10,000 largest companies.

Premium members have exclusive access to this study on Continental, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porter’s Five Forces (concise), MOST analysis, and more.

The Premium member version of this study is approximately 5,000 words and can be navagated using the table of contents section. For a more comprehensive analysis of the company please consider purchasing our flagship 20,000 word PDF version of our Continental company analysis report.

Company Description

Continental is a leading international automotive supplier headquartered in Hanover, Germany. Founded in 1871, the company specialises in the production of tires, brake systems, vehicle stability and powertrain systems. Its products and services are used in passenger cars, trucks, commercial vehicles, buses and two-wheelers, and are sold in markets around the world.

Industry Overview

Continental is a leading provider of products, services and solutions in the automotive industry. The total size of the global automotive industry was estimated to be around $3.3 trillion in 2019, with more than 50 million people employed in the industry worldwide. The largest automotive markets are located in the United States, China, Japan, Germany, and South Korea. Continental has 12,000 employees located in more than 40 countries, including the United States, China, Japan, Germany, and South Korea.

Industry Classification

In terms of formal classification, Platform Executive has tagged Continental as a business operating within the Automotive Parts industry.

Major Products & Services

The main products and/or services commercialised by this business include:

  • Tires
  • Automotive Parts
  • Automotive Fluid Systems
  • Brakes
  • Automotive Electronics
  • Automotive Interior Systems
  • Automotive Exterior Systems
  • Automotive Powertrain Systems
  • Automotive Sensors
  • Automotive Wheels
  • Automotive Services

Table of Contents

Save to Library
Add to library
Remove from library

Competitive Landscape

Continental operates in a highly competitive environment, constantly facing pressure from other players in the market. The company operates in a global marketplace, with competitors vying for market share and customer loyalty. They are constantly challenged to stay ahead of the curve and innovate in order to remain relevant and competitive. The industry is characterised by intense competition, with companies constantly developing new technologies and products to gain an edge. Pricing is also a key factor, with competitors offering similar products at competitive prices. This dynamic environment requires Continental to constantly adapt and evolve in order to maintain its position as a leader in the industry.

Key Competitors

We have identified the following organisations as being key competitors:

Unlock all sections of this report

Premium members gain FULL ACCESS to this analysis and approximately 10,000 similar competitive intelligence reports.

Each detailed study features a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and a SWOT analysis, along with a myriad of other high-value sections.

Premium membership costs $65 per month, or $595 annually.

Key Stakeholders

Stakeholders are individuals or groups affected by a business's actions. Understanding their needs helps a business make decisions that benefit all parties.

Internal and external stakeholders include the following:

1. Customers: Customers are the ultimate stakeholders of Continental, as they are the end users of the company’s products and services.

2. Employees: Employees are the lifeblood of Continental, and their performance is a key factor in the company’s success.

3. Suppliers: Suppliers provide Continental with the raw materials and components it needs to develop and manufacture products.

4. Shareholders: Shareholders are a crucial stakeholder group, as they provide the capital needed to fund the company’s operations and growth.

5. Government: Governments are important stakeholders, as they provide the regulatory framework within which Continental must operate.

6. Community: Continental has a responsibility to the local community and should strive to have a positive influence on it.

7. Media: The media can influence public perception of Continental and its products, so it is an important stakeholder to consider.

Customers and Cohorts

The main customers of the organisation include:

  • Business Customers
  • Leisure Customers
  • Government/Military Customers
  • Group Customers
  • Corporate Customers
  • Affinity Customers
  • Specialty Customers
  • Third-Party Booking Customers

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Product Innovation: Continental focuses on innovation and engineering in order to create the most advanced products and solutions for its customers. This has enabled the company to stay ahead of competitors in the industry.

Market Leadership: Continental is the world’s leading automotive supplier, with a strong presence in the industry. This provides the company with a competitive advantage over its competitors.

Global Reach: Continental has a broad global presence, with operations in over 50 countries. This provides advantages in terms of access to a wide range of markets and resources.

Financial Strength: Continental has a strong financial position, which allows it to invest in research and development, which helps it to maintain its competitive advantage.

Diversified Portfolio: Continental’s portfolio is diversified across different business segments, which provides strong stability and helps to reduce risk.

Market Trends

Market trends can significantly impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and ultimately affecting the organisation’s ability to remain competitive in the market. Staying ahead of these trends enables businesses to proactively adapt their strategies, mitigate risks, and capitalise on emerging opportunities.

As part of this study, we have identified a number of potential trends that could impact the organisation. These include the following:

Market Trends

Key Performance Indicators

Key Performance Indicators
KPIs (Key Performance Indicators) are important to a business such as Continental as they help measure progress towards achieving organisational goals and objectives. They provide a useful insight into the performance of different areas of the Continental business and therefore enable informed decision-making.

KPIs also help to motivate employees towards achieving targets.

Below is a list of Key Performance Indicators we deem relevant to this company:

Brand Strength

Brand strength is more than a logo or name. It reflects a company’s reputation and how it is perceived by customers, investors, and employees. It is built on core values, mission, and a unique selling proposition (USP) that differentiates the business.

Brand strength goes beyond superficial elements and taps into core values, the defined mission, and unique selling proposition (USP) of a company.

Below are key reasons why brand strength matters:

Trust and Credibility: In a market flooded with choices, customers gravitate toward brands they trust. A strong brand signals reliability and quality, fostering customer loyalty. Loyal customers not only make repeat purchases but also advocate for the brand, driving word-of-mouth growth.

Brand Strength Analysis

Differentiation: A strong brand helps a company stand out in competitive markets by clearly communicating its value proposition. It creates a unique identity, establishes a competitive edge, and positions the company as a leader in its industry. For example, Google is synonymous with internet search.

Customer Loyalty: A positive brand experience builds emotional connections, making customers less price-sensitive and willing to pay a premium. Loyal customers generate repeat business and act as brand ambassadors, reducing customer acquisition costs and boosting long-term profitability.

Talent Acquisition and Retention: A strong brand not only attracts top talent but also enhances employee morale and engagement. Employees who identify with a reputable brand are more motivated, productive, and committed, driving better business outcomes.

Benchmarking Brand Strength

Below is a guide as to the scoring mechanism used to gauge the brand strength of this company:

A

The company enjoys an excellent level of brand strength.

  • This score signifies that the company has developed a highly regarded and well-recognised brand.
  • Customers and the wider community perceive the company as trustworthy, reliable, and superior to competitors.
  • The company enjoys a strong connection with customers, who actively engage with and advocate for the brand.
  • The company's brand effectively communicates its unique value proposition.
  • The corporate attracts and retains top talent, and its reputation extends beyond its target market.
B

The company has a good brand strength, indicating that it has a solid and respectable brand presence.

  • Customers generally have positive perceptions of the company.
  • While the company may not be as distinctive or well-known as the top brands, it still differentiates itself from competitors and enjoys a loyal customer base.
  • The brand inspires some level of customer engagement and advocacy.
  • The company attracts top quality employees and maintains a good reputation. People want to work there.
C

The business has an average brand strength, meaning it is neither strong nor weak in the marketplace.

  • Customers perceive the company as ordinary or run-of-the-mill, lacking an emotional connection or distinctiveness.
  • The company faces challenges in standing out among competitors and needs to better communicate its proposition.
  • Decent level of customer satisfaction, but significant there is room for improvement in terms of brand loyalty.
  • The company's reputation is neither a huge positive, or negative.
D

The company's brand is quite weak. Work required to increase its potential.

  • Customers have mixed or negative perception of the company, associating it with average or below-average quality.
  • The business struggles to differentiate itself from its competitors and lacks a compelling value proposition.
  • Customer engagement and brand loyalty may be minimal, requiring some effort to improve the brand experience.
  • The company's reputation may have encountered challenges, poor press, or may not be well-known in the market.
E

The company's brand is weak and fails to resonate with customers and audiences. This needs to be addressed.

  • Customers perceive the company as being too unreliable, lacking in quality, or irrelevant.
  • The company struggles to differentiate itself from competitors, and there is a lack of customer engagement, or loyalty.
  • The company's reputation may be tarnished or negatively perceived, hindering growth efforts.
  • Significant efforts are required to rebuild the corporate brand and establish a more positive image in the market.
F

The company has a severe lack of brand strength. It is a problem that needs addressing with urgency.

  • The company is poorly recognised, and customers have negative perceptions or zero awareness of its offerings.
  • The company fails to communicate its unique value proposition or inspire customer loyalty.
  • The company's reputation may be highly unfavourable, and attracting customers or top talent is challenging.
  • Immediate and extensive actions are likely necessary to revitalise the brand.

Brand Strength Score

Scoring brand strength is subjective because it relies on individual perceptions and interpretations of various factors, such as customer sentiment, market dynamics, and the competitive landscape, which can vary.

Using our scoring methodology, the average score of a business is calculated as being C (average). This differs from the average score of the top 10,000 businesses featured in our coverage. Weighted to that cohort, the average brand strength score increases to a B (good).

The analysis team have noted the following factors impacting its brand strength:

  • Brand recognition in Europe and North America: A
  • Brand loyalty and customer satisfaction: A
  • Brand visibility through advertising campaigns: A
  • Brand presence in major markets: A
  • Ability to generate customer loyalty: A
  • Brand image and reputation: A
  • Brand Strength Score: A

7Ps Marketing Analysis

The 7Ps of marketing are crucial components of strategic decision making for any organisation in any industry vertical.

Using the 7Ps in competitive analysis provides a holistic view of the marketplace, allowing businesses to refine their strategies, capitalise on competitors' weaknesses, and better meet consumer needs. The 7P's are defined as:

  • Product/Service
  • Price/Fee
  • Place/Access
  • Promotion
  • People
  • Physical Evidence
  • Processes

All these elements together frame an organisation's marketing mix, crucial for creating effective marketing strategies.

This 7P analysis is designed to provide a valuable insight into the business strategies of the company. It can be used to reveal strengths and weaknesses in their marketing mix, offering opportunities to compare and enhance a business.

1. Product/Services: Continental offers a wide range of products and services for its customers, including airline tickets, hotel reservations, car rentals, and vacation packages. The company also offers additional services such as travel insurance and airport lounge access.

2. Price/Fees: The pricing strategy of Continental is based on a combination of cost-based and competitive pricing. The company offers competitive prices for its products and services, while also considering its operational costs. Special discounts and promotions are also offered to attract customers.

3. Place/Access: Continental has a strong global presence with flights to over 200 destinations worldwide. The company has a well-established network of airports, making it easily accessible to customers. It also offers online booking options, making it convenient for customers to access its services.

4. Promotion: Continental uses a mix of promotional strategies to reach its target audience. This includes traditional advertising methods such as TV, print, and radio ads, as well as digital marketing through social media and email campaigns. The company also partners with other businesses to cross-promote its services.

5. Physical Evidence: The physical evidence for Continental includes its fleet of modern and well-maintained aircraft, as well as its airport lounges and customer service centers. The company also ensures a seamless and comfortable travel experience for its customers through its quality services.

6. Processes: Continental has streamlined processes in place to ensure efficient and smooth operations. This includes online check-in, baggage tracking, and customer service support. The company also continuously evaluates and improves its processes to enhance the customer experience.

7. People: The employees of Continental play a crucial role in delivering quality services to customers. The company invests in training and development programs to ensure its employees are knowledgeable and provide excellent customer service. The company also values diversity and promotes a positive work culture.

Potential Products

As part of this study, we have carefully examined and prognosticated a range of new products, services, or innovations that this organisation could potentially develop and introduce to strengthen its market position and respond to emerging industry trends.

Continental could create a mobile app to allow customers to book flights, manage their travel, access exclusive deals, and receive notifications about upcoming flights.

Continental could create a loyalty program that rewards customers for frequent travel. The program could offer discounts, exclusive benefits, and travel rewards.

Continental could create a travel insurance service to provide additional protection for customers when they travel.

Continental could create a travel concierge service to help customers plan and manage their trips.

Continental could create a travel blog to share helpful tips and advice on traveling, as well as stories from customers who have traveled with Continental.

Continental could create a tour guide service to help customers explore their destinations.

Continental could create a travel photography service to help customers capture and share their memories from their travels.

Potential Synergies

Our proprietary product and portfolio-matching algorithm has identified the following organisations as having strong potential synergies with the company, based on strategic alignment, complementary capabilities, and opportunities for collaboration across markets or domains.

1. Volkswagen Group: Volkswagen and Continental have a long-standing relationship, with the two companies collaborating on a variety of automotive components, including tires and brakes.
2. General Motors: Continental and GM have collaborated on several projects, including the development and production of the ABS and ESP systems for the Chevrolet Volt, as well as the supply of advanced driver assistance systems for GM vehicles.
3. Bosch: Continental and Bosch have collaborated on a number of projects, including the development of advanced driver assistance systems, as well as the production of powertrain components and systems.
4. Delphi Automotive: Continental and Delphi have collaborated on the development of advanced driver assistance systems and the production of powertrain components for several vehicle manufacturers.
5. Denso: Continental and Denso have collaborated on several projects, including the development of advanced driver assistance systems and the production of powertrain components for several vehicle manufacturers.

Porter's Five Forces

Developed by Michael Porter in 1979, Porter’s Five Forces is a model used to analyse industry attractiveness and evaluate competitive environments. It considers five forces:

  • Competitive rivalry
  • Supplier power
  • Buyer power
  • Threat of substitution
  • Threat of new entries

We include this framework because it supports strategic planning, investment decision-making, and long-term competitive positioning across industries by highlighting structural pressures, market threats, and potential profit constraints.

Continental AG is a German multinational automotive parts manufacturing company, founded in 1871 as a rubber manufacturer. The company is headquartered in Hanover, Germany. The company scores relatively WELL in relation to the Porter's 5 forces.

1. Threat of new entrants: Continental AG has a strong brand name and a long history, which makes it difficult for new entrants to compete. The company also has a large market share, which further protects it from new entrants.

2. Bargaining power of buyers: Continental AG has a large number of customers, which gives it some bargaining power. However, the company faces strong competition from other suppliers, which limits its power.

3. Bargaining power of suppliers: Continental AG has a large number of suppliers, which gives it some bargaining power. However, the company is a large customer for its suppliers, which limits their power.

4. Threat of substitutes: There are few substitutes for Continental AG's products. The company has a large market share and a strong brand name, which make it difficult for substitutes to compete.

5. Competitive rivalry: Continental AG faces strong competition from other suppliers in the automotive parts manufacturing industry.

PESTLE Analysis

A PESTLE analysis is used to evaluate external factors affecting an organisation. It examines (1) Political; (2) Economic; (3) Social; (4) Technological; (5) Legal; and (6) Environmental influences. This framework helps businesses identify potential risks and opportunities in the macro-environment, supporting informed decision-making, strategic planning, and long-term sustainability in dynamic markets.

Reasons to use a PESTLE include:

  • Environmental Scanning: PESTLE helps assess external factors, keeping executives aware of key forces
  • Strategic Planning: It identifies opportunities and threats, aiding market alignment and goal-setting
  • Risk Assessment: PESTLE highlights risks, helping businesses develop mitigation strategies
  • Market Insights: It provides insights into trends, behavior, and regulations for better strategy development
  • Business Adaptation: Regular analysis allows businesses to stay competitive by adapting to changes

Below is the PESTLE analysis for this company:

PESTLE Analysis: political, economic, social, technological, legal, environmental

CATWOE Analysis

CATWOE

The CATWOE analysis helps businesses understand stakeholders' perspectives for informed decision-making, covering six elements:

  • Customers: Beneficiaries of the system’s outputs
  • Actors: Those who influence the system’s functionality
  • Transformation: Converting inputs into value-creating outputs
  • World View: The broader context behind the system’s existence
  • Owner: Decision-makers with authority over the system
  • Environment: External factors impacting the system

The CATWOE analysis is most effective when used alongside a SWOT analysis.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Continental business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

SWOT Analysis: strengths, weaknesses, opportunities, threats

Strengths

The strengths of a company refer to its internal attributes or capabilities that provide it with a competitive advantage.

Below is a list of the key strengths we have identified for the business:

1. Continental Airlines has a strong domestic market share, with a network that spans the United States.

2. The airline has a modern fleet of aircraft, which is one of the youngest and most fuel-efficient in the industry.

3. Continental has a strong reputation for customer service, with a focus on providing a hassle-free experience.

4. The airline has a solid financial foundation, with a strong balance sheet and profitable operations.

Opportunities

Opportunities refer to factors that present potential avenues for growth, advantage, or improvement for an organisation.

Below is a list of opportunities we have identified for the business:

1. Strategic Opportunity: Increase revenue by expanding its global network. Continental Airlines can leverage its current international route network by adding new routes to emerging markets such as South America, Africa, and the Middle East. This will allow them to tap into new revenue streams and increase their market share.

2. Operational Opportunity: Improve operational efficiency. Continental Airlines can improve operational efficiency by implementing new technologies and systems, such as cloud computing, big data analytics, and automated check-in systems. These technologies will allow them to streamline their operations and reduce costs.

3. Strategic Opportunity: Increase customer loyalty. Continental Airlines can increase customer loyalty by introducing loyalty programs, such as rewards points and special offers. This will encourage customers to fly with them more often, resulting in increased loyalty and revenue.

4. Operational Opportunity: Reduce fuel costs. Continental Airlines can reduce fuel costs by investing in more fuel-efficient aircraft and using alternative fuel sources. This will help them to reduce operational costs, improve their environmental footprint, and boost their bottom line.

Weaknesses

The weaknesses refer to factors that hinder a company's performance or competitive advantage.

Below is a list of the weaknesses we have identified for the business:

1. Continental Airlines has been plagued by high fuel costs and volatile oil prices in recent years, which have put pressure on profits and the company's share price.

2. The airline has also been hurt by a series of high-profile customer service mishaps, including a 2013 incident in which a Continental flight was stranded on the tarmac for more than eight hours.

3. Continental has been slower than some of its competitors to adapt to the changing landscape of the airline industry, including the rise of low-cost carriers.

4. The company has also been burdened by a large amount of debt, which stood at $8.3 billion as of December 31, 2016.

Threats

The threats to an organisation refer to factors that pose challenges or risks to a company's success.

Below is a list of the threats we have identified for the business:

1. Rising Fuel Costs: As fuel costs have been increasing over the last few years, Continental Airlines has had to absorb higher expenses, which could put pressure on their operating margins and profitability.

2. Increased Competition: Increased competition in the airline industry has made it difficult for Continental Airlines to differentiate their services and maintain their market share.

3. labour Disputes: As labour unions have become more active in recent years, Continental Airlines has had to deal with labour disputes and negotiations, which can lead to higher labour costs, lost productivity, and customer dissatisfaction.

4. Technological Changes: Technological changes have allowed airlines to become more efficient, but Continental Airlines has to stay up to date with the latest advancements in order to remain competitive. This means investing in new technology, which can be costly.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for Continental. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Continental, as well as areas where the company needs to improve its operations or strategy.
Company: Continental Continental is a German automotive manufacturing company that specialises in the production of tires, brake systems, vehicle stability control systems, infotainment, and other automotive parts. They have over 220 production sites in 56 countries and employ more than 246,000 people worldwide.

Collaborators: Continental works with a variety of partners and suppliers around the world to source materials, components, and technology. Some of these partners include Bosch, Siemens, and Magna International.

Customers: Continental’s customers are automotive manufacturers such as Audi, BMW, Mercedes-Benz, Porsche, and Volkswagen. They also provide their products to consumers directly through their own retail stores.

Competitors: Continental’s main competitors are Bridgestone, Goodyear, Pirelli, and Michelin.

Content: Continental produces a variety of content to market their products. This includes printed materials, online articles, videos, and social media content. They also have a customer service portal to provide customers with assistance and access to product information.
5C Analysis: company, customers, competition, collaboration, climate

MOST Analysis

MOST Analysis: mission, objectives, strategy, tactics

The MOST analysis framework is used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. The MOST analysis helps executives focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles.

  • Mission defines the organisations purpose and core values, providing a clear direction and inspiration for stakeholders
  • Objectives are specific, measurable targets that support the mission; they indicate what the organisation aims to achieve within a defined timeframe
  • Strategy outlines the high-level approach the organisation will undertake to reach its objectives, detailing how resources will be allocated and initiatives prioritised
  • Tactics are the actionable steps and specific plans that implement the strategy, ensuring that all team members understand their roles in achieving objectives

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

The team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism designed to benchmark innovation.

First, we allocate a score of A-E for the industry, based on the key organisations operating within the space; and then score the individual organisation using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Innovation Scorecard

Industry Score:

A The industry is amongst the most innovative; with the leading players all driving the sector forward.
Example industry: PaaS
B The industry and its leading players have a good track record of innovation; and can quickly react to change.
Example industry: Pharmaceutical
C Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate.
Example industry: FMCG
DBusinesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption.
Example industry: Retail Banking
E The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change.
Example industry: Publishing

 

Company Score:

1 The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2 The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3 The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5 The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.
The team at Platform Executive has judged Continental as having an innovation score of C3.

Appendices

The appendices section of this report contains supplementary information that we deem helpful in providing a more comprehensive understanding of the report.

Methodology

This study on Continental forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The report is based on information and learning from the following sources:

  • Corporate websites
  • Proprietary research databases
  • SEC Filings
  • Corporate press releases
  • News articles
  • Financial data API's
  • Product-matching algorithm

Further Reading

More Information

To gain full access to this and thousands of other analysis reports, become a Premium member.

If you cannot find the desired information for the business you are researching then please reach out.

Disclaimer

All Rights Reserved.

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Industry Keywords