Presentation Strategic Analysis of Fiat
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Transcript of Presentation Strategic Analysis of Fiat
Can ChaiCarron Francine
Colaert ManuDe vos Nicolas
Market and company analysis:
Global Strategic Management 2011
2
Outline
• 1.0 - History of Fiat• 2.0 - External Environment• 2.1 - General Environment: PESTEL• 2.1 - The Structure – Conduct – Performance Model of
Performance• 2.2 - The 5 Forces Model of Environmental Threats• 2.3 - The Key Success Factors• 3.0 - Internal Analysis: Value Chain• 4.0 - SWOT• 5.0 - Recommendations
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1.0 - Company History: Fabricca Italiana Automobili Torini
• 1899 : Founded by Giovanni Agnelli• 1908 - 1910: Introduction into the U.S.A.• 1939 - 1945 : Agnelli family removed from control• 1963 : Return of the Agnelli’s and major reorganisation• 1973 : The Oil Price Shock and its effects• 1979 - 1984 : Rise and fall of Fiat in the U.S.A.• 1986 - 1993 : Acquisition of Alfa Romeo and Maserati• 2000 - 2005 : Partnership with GM • 2004 : Sergio Marchionne takes over as CEO• 2009 : Global Alliance with Chrysler
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• Core business focus: Automotive sector• International Company (2 strategies)• Diversified business portfolio• Group structure
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Key Figures:Market Share: Revenue and Net Profit (2009):
2008 2009 20100
10
20
30
40
50
60
70
80
RevenueNet Profit
2008 2009 20100
10
20
30
40
50
60
70
80
RevenueNet Profit
2008
2009
2010
0 10 20 30 40 50 60 70
10.7
11
12
30
32
34
13
14.6
11
7
6
8
Eastern Europe Sourthern AmericaNorth America Asia
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2. General Environment: PESTEL
PESTEL
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2.1 - SCP:
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2.2 Porters’ Five Forces:FORCE THREAT
The threat of Entry Low
The treat of powerful buyers Moderately High
The threat of powerful suppliers Low
The threat of substitutes High
The threat of rivalry High
2.3 KSFmarket diversity
risk avoidance
quality
customer loyalty
innovation
product diversity
dynamic organization
brand awareness
0
5
10
FiatNissanFord
10
3.0 Internal Analysis: Value Chain• Primary Activities (R&D, Components or
Suppliers, Final Assembly or Manufactories, Marketing and service)
• Support Activities (Infrastructure, Logistics, Human Resources
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3.1 VRIO
12
4.0 SWOT
13
5.0 Recommendation
• Alliance with Nissan or Honda• Promoting Luxury Car brands in Asia• Outsource production• Revaluation of the brand equity • Marketing• Environmental friendly cars • Market orientation
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6.0 Alternative Strategies
• Concept Cars• e-Business• Higher Value-added Products• Consumer Support• Test Centers• Emphasis on Emerging Markets
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References• 2006 - The FIAT Case: a Therapeutical Crisis by Vincenzo Cammarata,
Veronika Kurucz, Valentina Maj, Aleksandra Pavlovic, Katherine Portmann for Università della Svizzera italiana, - Corporate Strategy – Prof. Erik R. Larsen – SI 2005-2006
• Anonymous, (2003), Back to the Future With Fiat , Journal of Strategic Direction Vol.19 Number 5 Page 13-15.
• Data Monitor, (2009), Fiat S.p.A: Company Profile, Business Source Premier, 22 May.
• Marchionne, S., (2008), First Person: Fiat's Extreme Makeover, Harvard Business Review Vol.86 Iss.12 p.45-48.
• Reliability Index, (2009), Manufacturer Index, Online, http://www.reliabilityindex.co.uk/man_index_2.html?apc=3128339010848601&searc htype=relindex#