Presentation Strategic Analysis of Fiat

Can ChaiCarron Francine

Colaert ManuDe vos Nicolas

Market and company analysis:

Global Strategic Management 2011

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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

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4.0 SWOT

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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#