FIAT’s strengths (SWOT Analysis)
October 25, 2012
Diversified Business Portfolio- FIAT is active in automobiles, components, and production systems, and operates through nine business segments, including FGA, Chrysler , Magneti Marelli, Ferrari, Comau, Teksid, Fiat Powertrain, and Maserati. This insulates Fiat from being heavily impacted by the potential demand fluctuations of specific product categories, meanwhile allowing it to benefit from the opportunities available in varying segments. Extensive brand portfolio and strong market share- Their product range extends from low consumption small cars to luxury class vehicles. FIAT’s strong brand image and strong market share across different geographies gives it significant competitive advantage and helps it to register higher sales growth in domestic as well as international markets (6.9% of the European market, and boasts shares of 29.4% in Italy, 6.7% in the Netherlands, 3.6% in France, 3.1% in Germany, 3.1% in Spain, and 3% in the UK, and is the market leader in the Brazilian passenger car market with a 22.2% share). Strong research and development capabilities- The company invests significant resources in R&D, using the most modern technologies to focus on safety systems, energy efficiency, emissions reduction, workplace safety, ergonomics, logistics, and the integration of new materials and technologies (FY2011 R&D = 2.3% of their net revenues). These strong R&D capabilities enable Fiat to develop better products, allowing it to remain at the forefront of its respective businesses and differentiate its offerings in a highly competitive market. Diversified geographic presence- Fiat has a presence in 44 countries, 472 companies worldwide, 155 manufacturing plants worldwide, and a customer relationship base with customers in approximately 140 countries. Its wide geographical reach enables it to cater to mature markets and reap the benefits of emerging markets....
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