Nicole Aderholt Richard Clark Truesdale Kimbrell Kevin Leong TEAM WILLY “GO ANYWHERE, DO ANYTHING”

Nicole AderholtRichard Clark

Truesdale KimbrellKevin Leong

TEAM WILLY

“GO ANYWHERE, DO ANYTHING”

November 1940-Original Willy’s Quad

1945-First civilian Jeep is introduced

1950-Willys-Overland

trademarks the Jeep

1970-AMC acquires

Kaiser-Jeep

1974-Introduction of

Cherokee

1987-Chrysler buys AMC

2009-Chrysler files for

bankruptcy

October 2014-Fiat completes acquisition of

Chrysler

Jeep Life

Vision- “Our vision is to build cars and trucks people want to buy, will enjoy driving and will want to buy again.”- Fiat Chrysler Automobiles

Values-Jeep focuses on freedom, capability and adventure through their “Go Anywhere, Do Anything” motto.

Goals-Jeeps 5 year plan includes expanding the model lineup, expanding the number of dealerships, doubling sales by 2018, taking production global, and rolling out new designs.

Analysis of Visions, Values, and Goals

• We believe that Jeep stays true to their values, however their vision isn’t parallel with that of Fiat Chrysler Automobiles.

• Jeeps’ goals are not consistent with their more customer based values.

• Doubling sales by 2018 is a BHAG

Supply Chain Map

Consumers

Dealership

National Distributor

Car Manufacturer

Tier 1: Major Car Component

suppliers

Tier 2: Suppliers furnish the parts

that Tier 1 components require

Tier 3,4,5: Lower tier suppliers

Raw Materials Manufacturer

Porter Analysis

Automotive Industry: ● Jeep● Toyota● Ford● Honda

Suppliers: ● Steel Manufacturer● Tire Manufacturer● Safety Equipment ● Electrical

Components Substitutes:● Bus● Airplanes● Bicycles/Scooters● Walking Potential Entrants:

● New Car Manufacturers

Buyers: ● Dealerships● Government Agencies

Complements:● Gas● Insurance● Repair Service

Force Factors Strength Profit Impact

Bargaining Power of Suppliers

Many suppliers within the industryLow Bargaining Power Low Switching Costs

Low

Bargaining Power of Buyers

High concentration of buyersInability to backwards integrateHigh switching costs

Low

Industry Rivals Diversity of competitorsLow growth rateHigh product differentiation High industry concentration

High

Substitutes Depends on price sensitivity of consumersCan perform similar functions (to an extent) Medium

Complements High availability of mutually beneficial industriesComplement in stronger market positionComplements increase the value of the industry

High

New Entrants High barriers to entry High capital requirements Limited access to distribution channels Low

Profit Assessment

1. Product/Service Quality2. Marketing/ Sales 3. Differentiation4. Strong Brand5. Technology 6. Operations 7. Safety

Key Success Factors- Automobile Industry

Firm Infrastructure: HQ in Toledo, Ohio, Nationwide Dealerships, Customer focused approach Human Resource Management: Training and skills development, Diversification

Technology Development: Eco Diesel Engines, Trail rated, 4X4, Fuel efficiency, Towing Procurement: Chrysler Purchasing, Supply base optimization

Inbound Logistics:

● Product Committee

● Supply Chain Management

● Mopar

Operations:● Some U.S.

Assembly● Powertrain

Operations ● Transmission● Axel

Outbound Logistics:

● Dealer Relations● Distribution

Coordination

Marketing & Sales:

● Jeep Jamboree● Commercials● Word of Mouth● Strong Brand

Recognition

Service:● Accessories ● Dealerships● Warranty

Strength & Importance Assessment Resource/ Capability Importanc

e Strength* Comment

Brand Loyalty 8 8 Over 70 years of legendary heritage

Product/Service Quality 7 4Jeep isn’t recognized to have high HP engines and they don’t last as long as Toyota engines.

Technology 8 7The new line up of eco-diesel engines offer innovative technology, increased efficiency, and lower emissions.

Marketing/Sales 6 8 Jeep Life, Jeep Jamboree, Jeep blog

Operations 7 4 Not as consistent as Toyota

Differentiation 8 8 Jeep offers a unique line up of vehicles

Distribution 2 5 Nationwide Jeep and Toyota dealerships *Compared to Toyota

Superfluous Strengths Key Strengths

Zone of Irrelevance Key Weaknesses

51

1

5

10

10

Rel

ativ

e S

treng

th

Strategic Importance

Consistency of Operations

*Compared to Toyota

Differentiation

Technology

Brand Loyalty

Product/Service Quality

Marketing/Sales

Distribution

Strategic Positioning

• Jeep concentrates on Differentiation • Unique products• Able to increase prices and still maintain a loyal customer

base

• Fiat Chrysler Automobiles are geared more toward mainstream consumers, whereas Jeep targets a niche market. • Adding 6 new factories in Europe, China and Latin America to

further globalize their operations

FIT

Vision, Values, Goals

● The goals, values, and vision are inconsistent with that of Fiat Chrysler Automobiles

Strategic Position● Jeep tries to maintain a

differentiation strategy

Internal● Jeep uses their key

strengths such as, strong brand recognition to leverage themselves above the competition

External● The well established

car industry requires diversification among industry rivals which is how Jeep can remain profitable

THE END