COMPANY PROFILE
Ferrari S.P.A. Is an Italian sports car manufacture based in
Maranello, Italy. It was founded by Enzo Ferrari in 1929.
It concentrated on racing cars.
The first Ferrari road car was Ferrari 125 s; 1947 & race car was Tipo
815.
The companies loftiest effort was in the supercar market The recent trend in the company is to make hybrid cars
SWOT ANALYSIS OF FERRARI
STRENGTHS
Extremely strong brand name
It is a combination of beauty and performance
Considered as a status symbol
Innovation and technology
WEAKNESS
Do not concentrate on mid-segments
Low fuel efficiency & high emissions
Long waiting list
Limited number of cars
OPPORTUNITIES
Rising demand for super cars
Expansion of brand into new markets
Development of technology
Enlargement of customer base
THREAT
Tough competition from Porsche, Lamborghini etc...
New automotive norms by many countries
Competitors have a better market share
EXTERNAL ENVIRONMENT
It consists of the following: Political
Economic Social Technological Ecological Demographic
POLITICAL
The legislation rules imposed by many countries for luxury cars
Pressure created by various voluntarily groups regarding governments
policies
The internal rules of different organisations or companies Free trade between different level between European countries
The changing norms of various governments/parties
Environmental issues such as co2 emissions etc..
ECONOMIC
After effects of recession in Italy(headquarters) Home economy trends is plummeted.
High tax rate on imported cars in countries like U.S, Australia etc...
Lack of market in certain developing & undeveloped countries Overseas economies and trends
SOCIAL
It is considered as a status symbol Consumer attitude and opinion of media views. Lifestyle trends of the people of U.K and U.S.A. The brand value of the company
Fashion and role models.
TECHNOLOGICAL
Competing technology development. Technology legislation. Innovation potential. Tie up with big technological firms.
Ferraris heart is its high performance oriented engine
ECOLOGICAL
Natural calamities can often affect the business adversely, it
always causes heavy losses to the business and in some cases it also results in the closing down of business.
Some of these natural calamities include earth quakes, tsunamis
flood etc...
The recent earthquake in Japan is an example of it.
DEMOGRAPHIC
The products of company are mostly preferred by younger
generations.
Majority of its users are males. It is mostly used by the high income and business class people.
INTERNAL ENVIRONMENT
It includes the following:
Physical resources
Financial resources
Human resources Intangibles
PHYSICAL RESOURCES
The main manufacturing unit is in Italy.
It have authorised distribution channel in more than 52
countries.
Its Revenue is around 1900 million Euros. It has sold around 6573 outputs in 2010.
FINANCIAL RESOURCE
The assets of the company is worth 23 billion.
The companies main investment is in Italy. The profit of the company increases significantly year
by year.
FINANCIAL POSTITION OF FERRRARI
BALANCE SHEET INCOME STATEMENT
(WEB: [Link])
HUMAN RESOURCES
Ferrari has nearly 3000 employees.
A program called Creativity Club is provided for developing
employees talents.
Their workforce consists of a strong dedicated employees
INTANGIBLES
The goodwill of the company The brand value of the company in the mind set of
people
The large market share of the company Its reputation in the automobile industry
COMPETITORS ANALYSIS
Market share of Lamborghini is 23%(2010) where as of Ferrari it is
28%(2010).
Market coverage of Ferrari is higher. Its competitors such as Porsche, Lamborghini etc... Concentrate on
various levels.
Its competitors produce larger number of cars in the market.
40%
20% 0% FERRARI Sales LAMBORGINI
STRATEGIES
Corporate Strategy
Business Unit Strategy
Functional Strategy
CORPORATE STRATEGY
To produce cars of superior quality. Concentrate on cars for middle class people as well. Increase the efficiency of cars in terms of fuel, CO2 emissions
etc...
BUSINESS UNIT STRATEGY
Generate new markets for the cars produced. Invest in places where competitors have not started their
business.
Better and improved adverting methods.
FUNCTIONAL STRATEGY
Construct new manufacturing units in many places. Increase the number of units for its distribution across the
world.
Outsource many of its items such as production units,
distribution etc..
Increase its investment in hybrid cars and other technologies.
REFERENCES
web: [Link] [Link]/swot-ferrari/ [Link] [Link] web: [Link] [Link]/swot-ferrari/ [Link]
PARLOFF, ROGER. Fortune International (Europe), 9/4/2006,
Vol. 154 Issue 4, p48-52, 4p Baglieri, Enzo; Secchi, Raffaele; Croom, Simon. Industrial Marketing Management, Oct2007, Vol. 36 Issue 7, p10101017, 8p; Simoneaux, Sarah L.; Stroud, Chris L.. Journal of Pension Benefits: Issues in Administration, Spring2011, Vol. 18 Issue 3, p75-78, 4p
