The 2009 Chrysler-Fiat Strategic Alliance

Topics: Automotive industry, Fiat, Chrysler Pages: 10 (2819 words) Published: August 13, 2012
June 6, 2012
Table of Contents
The Micro environment………………………………………………………….……………5-9
The Companies5-7
Internal Assessment8-9
The Macro Environment10-15
Brand Portfolios14-15


I. Introduction
II. The Micro environment
1. The Companies
a. Historical Background
b. Strategic alliances
2. Internal assessment (strengths and weaknesses)
III. The Macro environment
1. Benchmarking
2. Brand portfolios
IV. Conclusion

Nowadays, globalization is of high importance as it is currently influencing the world’s economy. Globalization is introducing a wide range of advantages and disadvantages that make some national businesses turn into powerful MNEs and some others vulnerable in front of this highly competitive global economy. The changes due to globalization are more and more affecting businesses worldwide, one of which is the increase of economies’ inter-dependence, where trade is as easy as if we were dealing on a one-country scale which makes one store in the U.S include as a direct or indirect competitor another one in a totally different region across the globe. As the world changes it is bringing about much greater business, economical and social impacts than ever before. One reactive strategy of globalization is the strategic alliance which is basically an agreement between two companies that share their resources, leading to mutual benefits & implying higher revenues. In such a coalition companies have more advantages and develop more effective processes, have access to wider resources, expand into new markets, get access to new technologies and know-how, develop advantages over competitors, as well as other possibilities. For instance, in this brief study, we will be tackling the 2009 Chrysler-Fiat strategic alliance; where the micro and macro environments of both firms will be held and analyzed and how this coalition was and will be of benefit for both companies, especially for Chrysler that was going through Chapter 11 and corporate restructuring in the US. Our primary objective in this study is to analyze and discuss Chrysler’s 2009 strategic alliance with Fiat, its current and future possible scenarios for this alliance. This tie-up is mainly based on technology sharing, global integration, quality control, and reorganization of brand portfolios.

I. The Micro Environment
1. The Companies
a. Chrysler: Founded on June 6th, 1925 by Walter P. Chrysler, it originated from the Maxwell Motor Company, which Walter P. Chrysler had joined in the early 1920s. The aim of the founders was to design a revolutionary new car that was affordable luxurious and innovative. In fact, a decade later, Chrysler Corporation earned the leadership in innovation and the label of Detroit's "engineering company". Chrysler was recognized as one of the top car manufacturer. During World War II, Chrysler was dealing with the government by building armaments, tanks and military vehicles for the US army. Chrysler was booming and very successful in its early years, in the 60s it expanded into the European market. In the late 80s Chrysler acquires the 4th largest auto manufacturer in North America, American Motor Corporation and took over its Jeep brand but was on the verge of bankruptcy and got rescued by the government. A decade later, Chrysler merges with Daimler-Benz, a German auto manufacturer, and calls it Daimler-Chrysler AG. As of 2001, the road gets tough on these companies due to high competition, changing market and quality issues which lead them to taking defensive strategies into consideration, retrenching and laying-off workers. Year 2006, the Chrysler group reports net loss, leaving the company in a bad condition, a restructuring plan and more lay-offs. After de-merging with Daimler in 2007, Chrysler did not do well because of the 2008-2009 global...

Bibliography: 1.
2. Chrysler’s official website,
3. Fiat’s official website,
4. Fiat’s official website,
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